A Nevada subcontractor agreement is a legally binding contract made between a contractor and a subcontractor that dictates the terms and conditions of their professional arrangement. While the subcontractor does not have a written contract with the client (individual/business who hired the contractor to complete a project), they are still bound by some of the terms of this agreement. Namely, they must perform the services listed in the subcontractor agreement in accordance with the latest version of the written agreement (“prime contract”) between the contractor and the client.
The subcontractor agreement also specifies the amount of compensation, the start and end date of the arrangement, termination options, subcontracting rights, liability insurance, and business licenses and permits. The subcontractor is not an employee of the contractor, they have independent contractor status in the eyes of the law and the IRS.