A New Jersey subcontractor agreement sets forth the terms and conditions of an exchange of services for compensation between a contractor and a subcontractor hired to complete a specific job as part of a larger project. The contractor oversees the whole project and the hiring of subcontractors, but the subcontractor is not an employee of the contractor. The written agreement dictates that the subcontractor is self-employed and thus responsible for obtaining their own liability insurance and business permits.

A subcontractor agreement outlines important provisions such as a list of services, who is responsible for labor, materials, and equipment, the date by which services must be completed, and the amount of compensation the subcontractor shall receive. Once the parties sign the agreement, it becomes legally binding and can only terminate under the conditions described in the document.