A Kentucky Subcontractor Agreement provides a written record of the agreement between a contractor and a subcontractor for work within a larger construction project.
Unlike casual laborers, subcontractors usually perform specific, often specialized, work on a project. Subcontractors often set their hours and conditions of work and typically provide their equipment.
While there are many payment arrangements a contractor and subcontractor can enter into, contractors usually pay in one or more lump sums on an invoice after the subcontractor meets specific conditions. A written agreement helps avoid disputes over payment or other terms.
Specific construction tradespeople, such as electricians and plumbers, obtain licensing directly from the Commonwealth of Kentucky Department of Housing, Building, and Construction. Other tradespeople receive licensing from town and county governments on a local basis. Businesses in Kentucky must register with the Department of Revenue for tax purposes.