A New York subcontractor agreement is used by an independent contractor to hire someone else (the subcontractor) to complete a specific portion of a larger work assignment. The document specifies the service(s) the subcontractor will provide, the date when they are permitted to start working, the expected completion date, and their hourly rate or service fee. When establishing payment terms, the parties should consider whether the subcontractor is required to cover service expenses (e.g., equipment, labor, transportation costs), as this can significantly affect their bottom line.

A subcontractor agreement is separate from the prime agreement between the contractor and their client; however, all terms outlined in this document must coincide with the prime agreement. Before signing, the subcontractor should review the prime agreement to check for conflicting terms or conditions.