An Alabama Subcontractor Agreement is a legal document that establishes an ongoing business relationship between two parties: a general contractor and a subcontractor.
Sometimes when performing a job, general contractors need more workers than they can access or require someone with specialized skills.
A subcontractor agreement allows a general contractor to oversee one or more subcontractors who perform specific tasks within the project. The general contractor is ultimately responsible for paying the subcontractor once work is completed.
The subcontractor agreement includes essential details like payment terms, an overview of subcontractor responsibilities, and work deadlines.
Specific responsibilities can include what exactly the labor entails, types of materials used, equipment the subcontractor has access to (including machinery and any relevant accessories), and the location where the subcontractor will perform work.
Both parties need to sign and date the agreement. After agreeing to terms with signatures, they are legally obligated to follow everything noted in the document.
“A “subcontractor” is subject to and shall comply with all the provisions of this chapter as specified for general contractors except as follows:
(1) A subcontractor shall pay one-half the fees as required in this chapter for general contractor.
(2) No bid limits shall be established for a subcontractor.
(3) A subcontractor shall submit with license application and renewals a statement of financial condition as prescribed by the board.
(4) A subcontractor shall furnish three references from any combination of the following: Licensed general contractors, registered professional engineers, registered architects, or qualified person, as declared by the board, for whom they have worked. If a subcontractor has only been employed by one company, the subcontractor shall provide the following: Three or more jobs he or she has worked on, the amounts of the contracts, the time period of the contracts, the location of the contracts, and a statement of experience.
(5) A subcontractor is not required to be licensed at the time a project is bid but must be licensed with the board prior to beginning work on the project.
(6) A general contractor license and license number issued by the board to subcontractors shall denote subcontractor status.
(7) A subcontractor is not required to sit for any examination before being licensed.”