A Louisiana Subcontractor Agreement outlines the relationship between a subcontractor and a general contractor. It defines the scope of work for a project, payment terms, and other requirements like who will provide insurance, transportation, and materials.
Subcontractors contract with a prime contractor and contract directly with a property owner because, in that case, they would be prime contractors.
Hiring a subcontractor can benefit general contractors when those prime contractors don’t have the time or resources for a job.
For example, a general contractor may lack electrical experience, so they can hire a subcontractor to complete this portion of a home improvement project.
Frequently Asked Questions
How long does a contractor have to pay a subcontractor in Louisiana?
Per Louisiana Rev. Stat. § 9:2784(C), contractors must pay subcontractors within 14 days of receiving payment from the owner.
Do subcontractors have to be licensed in Louisiana?
Suppose the total contract cost of a commercial project exceeds $50,000 for major and specialty work or $10,000 for electrical, mechanical, or plumbing. In that case, the subcontractor requires a license from the Louisiana State Licensing Board for Contractors.
In addition, the subcontractor must have a license with the Board for residential projects exceeding $7,500 for home improvement projects or $7,500 for residential swimming pools.