Subcontractor Agreement Construction Template
This Construction Subcontractor Agreement (the "Agreement") is entered into on (the "Effective Date") by and between
, an individual having their usual place of living at (the "Subcontractor"), and
, an individual having their usual place of living at (the "Contractor"), collectively referred to as the "Parties" and individually as the "Party".
WHEREAS the Contractor has entered into the dated (the "Original Contract") with the , an individual having their usual place of living at (the "Client"), and the Contractor needs special services from the Subcontractor to fulfill the obligation under the Original Contract.
NOW, THEREFORE, in consideration of the mutual promises and obligations set forth herein, and upon other good and valuable considerations, the receipt and sufficiency of which is hereby acknowledged, the Parties have agreed as follows:
DESCRIPTION OF THE SERVICES. Following the terms and conditions of the Agreement, the Subcontractor shall provide the Contractor with the following construction services (the "Services"):
Additional work. If either Party, while performing the Services outlined in this Agreement, identifies the need for additional work not initially foreseen or defined in the Agreement, both Parties shall promptly communicate and collaborate to address the situation. The costs for additional work shall be subject to a separate written agreement, the terms of which shall be binding on both Parties. Neither Party shall proceed with any additional services without a prior written agreement between them.
Work site. The Services will be provided at (the "Work Site"). The Contractor shall grant the Subcontractor safe and unrestricted access to the Work Site while the Services are performed.
EQUIPMENT. The Contractor shall provide equipment and tools necessary to perform the Services. The Contractor is responsible for providing the required materials for rendering the Services, and the Contractor should buy the necessary materials according to the list and technical specifications provided by the Subcontractor.
SCHEDULE OF WORK. The Subcontractor will start on (the "Commencement Date"), and the Services shall be provided in full no later than (the "Completion Date"). The Completion Date may be changed upon mutual written agreement of the Parties.
The standard working schedule for providing the Services shall be unless otherwise agreed upon in writing by both Parties (the "Schedule of Work").
RIGHTS AND RESPONSIBILITIES OF THE PARTIES. The Subcontractor should keep the Work Site in a safe, clean, and orderly appearance. Upon completion of the Services, the Subcontractor shall ensure the thorough cleaning of the Work Site and the proper disposal of any debris.
The Subcontractor shall be entitled to reasonable breaks and rest periods as required by applicable labor laws. The Contractor shall allow an appropriate duration for meal breaks.
The Contractor is obligated to provide the Subcontractor with all necessary information and documentation connected with performing the Services, including but not limited to plans, drawings, and specifications.
QUALITY CHECK AND ACCEPTANCE. Upon completion of the Services, the Contractor shall have days to inspect and assess the results to ensure they meet industry standards and the requirements outlined in this Agreement. If deficiencies or deviations are identified during the inspection, the Subcontractor shall complete all necessary corrections within days and at no additional cost to the Contractor. After the inspection and required modifications, the Contractor shall provide written notice of acceptance to the Subcontractor. The Services shall be deemed accepted if the Contractor fails to provide a written notice of defects within the specified period.
The Contractor may engage a third-party independent inspector or evaluator to assess the deficiencies and provide recommendations for remediation. If the third-party assessment confirms substantial defects or deficiencies and recommends corrective actions, the Subcontractor shall be responsible for covering the cost of the third-party evaluation and any subsequent corrections required to ensure compliance. Otherwise, the Contractor retains the right to seek remedies as outlined in the governing law and dispute resolution provisions of the Agreement.
PAYMENT TERMS AND PROCEDURE. In consideration of the Services, the Contractor shall pay the Subcontractor the fixed fee of (the "Price"). The payment shall be made in full before the Commencement Date.
The Contractor shall pay the Subcontractor in cash.
Late payment. If the Contractor fails to make any payment on time, the Subcontractor shall have the right to charge interest on the overdue amount at a rate of % per day.
PERMITS. The Contractor shall be responsible for obtaining all required permits, licenses, and approvals necessary for the performance of the Services, including but not limited to building permits, zoning permits, and any other applicable governmental authorizations. The Contractor shall submit permit applications, pay associated fees, and complete any necessary paperwork promptly.
The Subcontractor assures the possession of all necessary permits, licenses, and authorizations required to provide the Services.
INSURANCE. The Subcontractor shall obtain and maintain the necessary insurance coverage to protect the Parties from claims set forth below. These claims may arise from the Subcontractor's activities under the Agreement and for which the Contractor may be legally liable for general liability insurance coverage with a reputable insurance provider.
TERM AND TERMINATION. This Agreement shall commence on the Effective Date and shall continue until but not before the Parties fulfill their obligations under the Agreement unless terminated earlier following the terms of this Agreement.
Either Party may terminate this Contract without cause upon providing days written termination notice.
The Contractor may immediately terminate this Agreement by giving written notice to the Subcontractor if the Services are not provided within the agreed-upon time. The Contractor may also terminate this Agreement if the Subcontractor refuses or fails to obtain required permits, licenses, and approvals necessary for the performance of the Services or consistently disregards applicable laws or safety standards.
The Subcontractor may immediately terminate this Agreement by giving written notice to the Contractor in case the Contractor fails to make timely payments, deny access to the Work Site, or fails to provide the Subcontractor with all necessary information and documentation connected with performing Services, including but not limited to plans, drawings, and specifications.
In addition, either Party may terminate this Agreement immediately upon written notice to the other Party if the other Party becomes insolvent or files for bankruptcy.
If the Original Contract requires the Client's prior written consent to subcontract and such consent is not obtained, this Agreement shall be deemed null and void.
Upon termination of this Agreement, the Contractor shall pay the Subcontractor for all Services satisfactorily provided by the Subcontractor through the termination date.
RELATIONSHIP OF PARTIES. The Parties agree that their relationship under this Agreement is that of independent parties.
CONFIDENTIALITY. Neither Party shall disclose any terms or conditions of this Agreement or give its copy to any third party, except if required by law or in any judicial proceeding, provided that the releasing Party has given the other Party reasonable notice of that requirement. The disclosure may be permissible to the Party's attorneys, accountants, brokers, and other consultants or advisers, provided they consent to be bound by the terms of this confidentiality clause.
LIABILITY. The Subcontractor shall indemnify and hold harmless the Contractor against all actions, claims, proceedings, liabilities, costs, expenses, and losses, including but not limited to direct, indirect, and consequential loss of profit suffered or incurred by the Contractor in relation with Subcontractor's execution or breach of the Agreement.
The Contractor shall be liable for damages to the Subcontractor caused by negligence or willful misconduct of the Contractor or the Contractor's associated persons. The damages shall be limited to actual and proven damages incurred by the Subcontractor.
If the Subcontractor's actions, negligence, or improper performance of this Agreement result in fines, penalties, or other financial liabilities incurred by the Contractor, the Subcontractor shall be solely responsible for compensating such fines and penalties.
WARRANTIES. The Parties represent and warrant that they have full right, power, and authority to enter into this Agreement and that its execution has been duly authorized by all necessary actions.
The Subcontractor guarantees that the provided Services meet all federal and state-specific product liability requirements, consumer protection laws, and the standards in the construction industry.
The Subcontractor provides a warranty period (the "Warranty Period") for the completed Services, effective from the date of receiving the written notice of the Services acceptance. The warranty covers defects in workmanship and materials used, as determined by the Contractor's inspection. The warranty does not cover damages or issues resulting from normal wear and tear, acts of nature, improper maintenance, alterations, or modifications made by Parties other than the Subcontractor. In case of any defects or issues covered by the warranty, the Contractor shall promptly notify the Subcontractor in writing during the Warranty Period. Upon receipt of a valid warranty notification, the Subcontractor shall promptly inspect and assess the reported issue. If the inspection confirms the presence of a covered defect, the Subcontractor shall undertake remediation and necessary repairs within days at no additional cost to the Contractor.
NOTICE. Any notice or communication required or permitted under this Agreement shall be sufficiently given if delivered personally or by certified mail, return receipt requested, to the address specified in the opening paragraph or to such other address as one Party may have furnished to the other Party in writing, or emails set forth below:
If to the Contractor:
If to the Subcontractor:
Either Party may change the registered mail or email address for receipt of notices by giving written notice to the other Party. All notices shall be deemed received on the day of delivery if sent by hand or courier service or on the third business day after the date of posting if sent by registered mail or email.
FORCE MAJEURE. Neither Party shall be liable for any failure to perform or delay in performing the obligations under this Agreement if such failure or delay is caused by events of force majeure, including but not limited to acts of God, war, terrorism, strikes, lockouts, labor disputes, pandemics, epidemics, governmental regulations, or any other similar causes beyond the reasonable control of the affected Party. In the case of force majeure, the affected Party shall immediately notify the other Party in writing and provide reasonable proof of the cause of the delay or inability to perform the obligations. The Party affected by force majeure shall endeavor to mitigate the consequences of such circumstances and resume the performance of obligations as soon as possible after the circumstances cease to exist.
If the force majeure circumstances last more than days, either Party may terminate this Agreement by giving written notice to the other Party. In this case, neither Party shall be liable to the other Party for any damages arising from the termination of this Agreement.
GOVERNING LAW AND DISPUTE RESOLUTION. This Agreement shall be governed by and interpreted following the laws of the State of , and any disputes arising out of or in connection with this Agreement shall be exclusively resolved by the courts of the State of .
SEVERABILITY. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
ASSIGNMENT. Neither Party may assign or transfer this Agreement without obtaining prior written consent from the non-assigning Party, which approval shall not be unreasonably withheld.
ENTIRE AGREEMENT. This Agreement is the complete and binding agreement between the Parties with respect to the subject matter hereof, superseding any prior agreements and communications, both written and oral, regarding such subject matter.
WAIVER. The failure of any Party to enforce a particular provision of this Agreement shall not constitute a waiver of their right to enforce that provision in the future.
AMENDMENTS. This Agreement may only be modified, or any rights under it waived, by a written document executed by both Parties.
BINDING EFFECT. This Agreement shall be binding for the Parties and their respective permitted successors and assigns.
ANNEX. Original Contract.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
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THE SUBCONTRACTOR |
THE CONTRACTOR |
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, USA | , USA |
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| ____________________________________ | __________________________________ |
| (Place for signature) | (Place for signature) |
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