A professional services subcontractor agreement sets out the terms by which an individual or entity is hired to provide services to a prime contractor. The prime contractor holds the main contract with the actual client and will be responsible for paying the subcontractor and be liable for their work. The hired party will be required to use their skill set to contribute towards the completion of the main contract. The agreement will detail the specific services that the subcontractor is hired to complete, as well as the compensation they will receive, and when the project will be finished.
What are Professional Service Subcontractors?
Professional service subcontractors are individuals who are trained in a skill, trade, or field. Furthermore, most of these specializations will require a license, registration, or certification for the individual to operate professionally.
Examples of the types of specialists that may be hired as subcontractors include the following:
- Equipment operator
What Should be Included in the Contract?
A subcontracting contract is usually drawn up after negotiations have been made between the service provider and the prime contractor regarding the terms. The completed professional services subcontractor agreement will need to include the following information:
- The names and addresses of both parties.
- The name and address of the client.
- The services for which the subcontractor is hired.
- The subcontractor’s responsibilities.
- The location of the job.
- The contract’s start date.
- How and when the contract will be complete.
- The terms of payment.
- The subcontractor’s independent contractor status.
- Both parties’ signatures.