A carpentry subcontractor agreement is used when a general contractor hires a subcontractor to perform carpentry work on a construction project. The agreement details payment terms, establishes a timeline for completion, and specifies whether the subcontractor is responsible for bringing their own equipment and supplies on site. In some contracts, the agreement will set a minimum amount of liability insurance the subcontractor must obtain to protect against personal injury and property damage. By documenting these terms, the parties set expectations and minimize the potential for disagreements.
Subcontractor agreements will list the full names and mailing addresses of the general contractor and the subcontractor. If either party conducts business using a name other than their own, the agreement should instead provide the registered business name and the corresponding mailing address.
A service description is an important component of the agreement, as it relays the subcontractor’s function and general project responsibilities. It is not uncommon for the original service description to be modified as the work progresses. In those cases, a “change order” setting forth new service terms may be negotiated between the parties and incorporated into the subcontractor agreement.
In addition to the subcontractor’s duties, the agreement will state which items the subcontractor is responsible for bringing to the job site. For instance, if the subcontractor is required to provide their own timber, tools, and supplies, this information must be explicitly stated in the agreement.
Compensation terms spell out how much and how often the subcontractor will be paid. They may also denote any contingencies that must be satisfied before payment can be issued (e.g., payment upon completion of the services).
A carpentry subcontractor agreement includes procedures that must be followed when either party disputes the contract provisions or fails to fulfill their contractual obligations. Disputes can be settled through binding arbitration, non-binding arbitration, or neutral mediation.
In this part of the contract, the parties can specify the circumstances (if any) that would allow the parties to terminate the agreement. The termination provisions can be tailored to give either or both parties the option to terminate the agreement by providing advance written notice to the other.
In general, carpentry services are subcontracted to a carpenter whenever a project’s scope of work requires the installation, building, or maintenance of wood structures. However, there are other reasons why general contractors might hire a carpentry subcontractor. Some examples include the following:
- General contractors may lack the ability and know-how to operate as a framing or finish carpenter, which is why outsourcing carpentry work to a skilled subcontractor is often the most efficient option.
- Carpenters are well-versed in selecting the appropriate timber, tools, and materials for any given project.
- Carpenters may have special licensure that’s required in some states to perform certain carpentry tasks (see state licensing requirements).
- Hiring a subcontractor assures the general contractor that the project will be handled by a trained professional whose work satisfies building standards for residential and commercial constructions.