A Missouri Subcontractor Agreement is a document that establishes the parameters of a legal relationship between a contractor and a subcontractor. It outlines the scope of the work and the timeline upon which the contractor expects completion.
The agreement also notes when the subcontractor can expect payment, how much the contractor will pay the subcontractor, and whether or not the subcontractor is responsible for their transportation.
Contractor-subcontractor relationships in Missouri occur in terms of construction jobs per state law.
The nature of most contractor-subcontractor projects is to improve a piece of real property; in this case, on-site workers typically complete tasks to assist the prime contractor. A subcontractor is not an employee of the property owner or contractor. Instead, the subcontractor has a contractual relationship (temporary for hire) with the contractor directly.
How long does a contractor have to pay a subcontractor in Missouri?
For public works contracts, Missouri Rev. Stat. § 34.057(1)(7) provides that unless there is “reasonable cause,” a contractor must pay a subcontractor within 15 days of receipt of payment from the client, subject to 1.5% per month interest for late payments. This general rule applies to all tiers of contractors, subcontractors, and sub-subcontractors. For private construction work, under Missouri Rev. Stat. § 431.180, the payments must be made according to the subcontract terms.