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An information technology (IT) subcontractor agreement defines the terms of the professional relationship between an IT contractor and subcontractor. The agreement relays the scope of work the subcontractor will be carrying out, their compensation, the project’s deadline, and each party’s responsibilities (e.g., providing software, computers, etc.). Entering into the agreement ensures the parties understand their obligations and the consequences of failing to uphold the contract’s terms.
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What do IT Subcontractors do?
IT subcontractors work in the information technology sector under the direction of another contractor. For example, if a contractor is working on a project for a client, such as developing a website, they may outsource some of the work to an IT subcontractor specializing in a particular area.
What are examples of IT subcontractor jobs?
- Web developer
- Software developer
- Cybersecurity analyst
- Network administrator
- Database administrator
What’s included?
- The Parties (Identification) – The client’s, contractor’s, and subcontractor’s names and mailing addresses.
- Services – A description of the subcontractor’s assigned tasks.
- Responsibilities – Divides the responsibilities for providing materials, tools, or transportation between the parties.
- Cost (Fees) – The subcontractor’s compensation and payment schedule.
- Location – The address of where the work will take place.
- Term – The date on which the subcontractor may begin their work and the deadline for completion.
- Subcontracting – Specifies whether the subcontractor may hire additional subcontractors.
- Insurance – States whether the subcontractor must purchase liability insurance and, if so, the minimum amount.
- Resolution of disputes – Establishes how disputes will be resolved (e.g., mediation, arbitration, etc.).
- Signatures – The signatures, printed names, and signing dates of the parties.
How does IT subcontracting work?
In a subcontracting arrangement, the subcontractor works under the direction of the contractor rather than the client. The contractor determines the subcontractor’s compensation and responsibilities, as well as when the job is finished.
Contractors typically reach out to subcontractors to tackle specific areas of a project; for example, a contractor developing a network system for a client may subcontract a cybersecurity specialist to ensure the system is adequately protected from cyber threats.
What are the Advantages of Subcontractors vs. Employees?
Unlike in an employee-employer relationship, subcontractors allow clients to hire specialized labor for shorter terms without the need to provide insurance or benefits. As systems in the IT sector grow increasingly complex, workers with a focus on a particular area of IT (e.g., software development, cross-platform integration, programming, etc.) become more necessary. For smaller companies or startups, subcontractors provide a flexible solution for clients with limited budgets.
Sample
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IT SUBCONTRACTOR AGREEMENT
This Information Technology (IT) Agreement (the “Agreement”) is made between:
Contractor: [CONTRACTOR NAME] with a mailing address of [CONTRACTOR ADDRESS] (the “Contractor”), AND
Subcontractor (IT Professional): [SUBCONTRACTOR NAME] with a mailing address of [SUBCONTRACTOR ADDRESS] (the “Subcontractor”).
WHEREAS, the Contractor intends to pay the Subcontractor for Services provided, effective [MM/DD/YYYY] (the “Effective Date”), under the following terms and conditions:
1. THE CLIENT. The Subcontractor acknowledges that any services performed under this Agreement must be in accordance with the latest version of the agreement (the “Prime Contract”) made between the Contractor and [CLIENT NAME], who has a mailing address of [CLIENT MAILING ADDRESS] (the “Client”).
2. IT SERVICES. The Subcontractor agrees to perform the following IT services: [DESCRIBE IT SERVICES] (the “Services”).
3. SUBCONTRACTOR RESPONSIBILITIES. The Subcontractor shall be responsible for providing the following materials and equipment, with any unlisted item a responsibility of the Contractor: [LIST MATERIALS AND/OR EQUIPMENT THE SUBCONTRACTOR WILL PROVIDE].
4. LOCATION. The primary location for the Services completed by the Subcontractor shall be [PRIMARY LOCATION ADDRESS] (the “Location”).
5. TERM. The Subcontractor shall be permitted to begin the Services on [MM/DD/YYYY] (the “Start Date”). Unless otherwise stated, the Subcontractor will be required to complete the Services in a reasonable period in accordance with industry standards.
6. PAYMENT AMOUNT. Payment for the Services shall be as follows: [DESCRIBE COMPENSATION].
7. PAYMENT FREQUENCY. The Contractor shall pay the Subcontractor within thirty (30) days of receiving an invoice for the work performed, subject to an inspection of the services performed.
8. TERMINATION. During the course of this Agreement, either party can terminate this agreement by providing [#] days’ notice to the other.
9. INSPECTION OF IT SERVICES. The Subcontractor shall make the Services accessible at all reasonable times for inspection by the Contractor. The Subcontractor assumes full responsibility to protect the IT work performed until final acceptance by the Contractor or any authorized third (3rd) party.
10. INDEMNIFICATION. The Subcontractor shall indemnify and hold the Contractor and Client harmless from any loss or liability from performing the Services under this Agreement.
11. NOTICES. All notices under this Agreement shall be in writing and sent to the address of the recipient specified herein.
12. GOVERNING LAW. This Agreement shall be governed under the laws in the State of [STATE].
13. ADDITIONAL PROVISIONS.
[ADD ANY ADDITIONAL PROVISIONS HERE (OPTIONAL)].
IN WITNESS WHEREOF, this Agreement was signed by the parties under the hands of their duly authorized officers and made effective as of the undersigned date.
Contractor Signature: _____________________ Date: [MM/DD/YYYY]
Print Name: [CONTRACTOR NAME]
Subcontractor’s Signature: _____________________ Date: [MM/DD/YYYY]
Print Name: [SUBCONTRACTOR NAME]