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Home Business Employment Contract Subcontractor Arkansas

Arkansas Subcontractor Agreement

Updated June 29, 2023 | Legally reviewed by Susan Chai, Esq.

An Arkansas Subcontractor Agreement helps establish the agreement between a general contractor and a subcontractor.

Subcontractor Definition

  • Arkansas Code § 18-44-107(4) 

“‘Subcontractor’ means any person who supplies labor or services pursuant to a contract with the contractor, or to a person in direct privity of contract with such person.”

General contractors often use specialized subcontractors for technical work on a construction site. Projects commonly subcontracted include electrical, plumbing, and HVAC work. Other work like excavation, grading, and paving might also be subcontracted.

Because subcontractors are not employees of the general contractor, they are not paid hourly. Instead, they are paid when the task they have subcontracted is completed. They are usually paid in a lump sum or periodically upon an invoice. Disputes over terms can be frustrating, and a well-thought-out written subcontractor agreement can help avoid conflict.

Arkansas has exact and specific licensing requirements for construction contractors. However, subcontractors who work strictly for properly licensed contractors by the state of Arkansas generally do not need a separate license. Also, if the subcontractor is licensed by another Arkansas state board or agency, such as an electrician or plumber, and is doing work within the scope of that license,  the subcontractor does not need a separate license.

Subcontractors must register with the Arkansas Contractor Licensing Board, which oversees contractor licenses and subcontractor registration certificates. In addition to fines and penalties, unlicensed contractors and unregistered subcontractors may be unable to file mechanic’s liens or enforce contract provisions.

 

Create Your Arkansas Subcontractor Agreement in Minutes!

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