A Subcontracting Agreement is a legal document that you can use to set out the terms and conditions between a contractor and subcontractor for the provision of services to a third party.
There are many occasions when a business who is the supplier of goods or services under a contract does not supply all the goods or provide all the services for the project directly but engages a subcontractor to do so.
For example, a contractor may be engaged in a specific construction project. However, in order to complete that project the contractor may hire a subcontractor to do some or all of the work for the construction project.
Another example is where a software company (the contractor) enters into a specific contract to create a website and an app. The software company may focus on the software aspects of the project but may hire a subcontractor to perform other parts of this contract, such as the website design or graphics required for the website.
A Subcontracting Agreement specifies the terms of the relationship between the main contractor and the subcontractor.
When drafting a Subcontracting Agreement, it is important to focus on a number of key clauses, in particular:
Independent Contractor Agreement and Subcontractor Agreement.