An Arizona subcontractor agreement outlines the task details between a contractor and hired workers, subcontractors, who are not employees but rather additional resources to complete a job. The contract documents job requirements and important information, such as the names of the individuals and companies involved, the payment terms, the scope of the job, and the delivery terms. Once signed, it is legally binding and protects both parties.
Subcontractor Definition
“Contractor”: (b) “includes subcontractors, specialty contractors, floor covering contractors, hardscape contractors and consultants who represent that they are able to supervise or manage a construction project for the property owner’s benefit, including hiring and firing specialty contractors, scheduling work on the project and selecting and purchasing construction material.”
Sample
Use our Arizona subcontractor agreement template to ensure you don’t miss any essential information. Download it in PDF or Word format:
Do subcontractors need to be licensed in Arizona?
Most construction contractors (prime contractors and subcontractors) must be licensed with the Arizona Registrar of Contractors, although some exemptions apply. To become licensed, submit an application showing you passed one or more written exams, meet appropriate experience requirements, and have sufficient bonding.
How long does a contractor have to pay a subcontractor in Arizona?
Under the Arizona Prompt Payment Act, specifically Arizona Rev. Stat. § 32-1183, when the subcontractor has performed in accordance with the contract, the contractor must pay the subcontractor within seven days after the contractor receives payment from the owner.
When do subcontractors have a right to stop work in Arizona?
A subcontractor can suspend or terminate their contract under the following conditions:
- If the owner doesn’t pay for the subcontractor’s work on time, and the general contractor also fails to pay, the subcontractor must provide three days’ notice to both the general contractor and owner (Arizona Rev. Stat. § 32-1185).
- If the owner pays the general contractor, but the general contractor doesn’t pay the subcontractor, a seven-day notice to both parties is required.
- If the owner refuses to approve payment for the subcontractor’s work, but the issue is not the subcontractor’s fault, a seven-day notice to both parties is also necessary.