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Information Technology (IT) Subcontractor Agreement Template

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An information technology (IT) subcontractor agreement defines the terms of the professional relationship between an 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.

Contents

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 their work is deemed completed.

Contractors typically reach out to subcontractors to tackle niche 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 properly protected from cyber threats.

What are the advantages of hiring a subcontractor?

Hiring a subcontractor allows contractors to delegate work to a person or company that possesses expertise that they may not have. Doing so allows for a better result and expedites the project’s progress. In addition, subcontractors may be hired when a project does not have enough work to hire a full or part-time employee.


Frequently Asked Questions

Who is liable under a subcontractor agreement?

The subcontractor bears responsibility for loss or liability resulting from their actions (or that of any subcontractors they have hired).

For this reason, some contractors require a minimum amount of liability insurance that the subcontractor must purchase as a condition for entering into the agreement.

Can an IT subcontractor hire additional subcontractors?

Sometimes. Whether or not the subcontractor can hire other subcontractors will depend on the job; however, in all cases, this condition should be relayed in the agreement. If so, there must be a written agreement between the subcontractors with language equivalent to the contractor’s agreement.