A Delaware Subcontractor Agreement is a legally binding contract with another party who brings the skills, resources, and other assets the contractor needs to ensure things get done correctly.
A subcontractor agreement specifies the responsibilities of both parties, including the scope of the work, any required insurance, and how both parties agree to settle disputes.
Depending on the scope of a construction project, a contractor might win a bid for a job they can’t complete independently. In that case, they would enter into a subcontractor agreement.
Note that a subcontractor agreement will also specify if the subcontractor is responsible for bringing their equipment to the job site or the general contractor will provide it. The same is true of materials. The subcontractor may also have the option to subcontract work further if needed.
How long does a contractor have to pay a subcontractor in Delaware?
Per Delaware Code § 3507(d), if the subcontractor payment terms are not in the contract, the contractor must pay all undisputed amounts owed to the subcontractor within 15 days of receipt of payment from the owner.