A Montana Subcontractor Agreement is a document that legally establishes a relationship between a contractor and a subcontractor. It defines the scope of the work for a job, including a deadline for all deliverables.
The agreement provides an overview of how much the contractor will pay the subcontractor and when payment is due. It also outlines insurance requirements, travel expectations to the job site, and other critical elements like whether or not the subcontractor will provide his or her tools and materials.
When do you use a subcontractor agreement? For example, if a contractor takes a job requiring a skill he or she doesn’t have, such as electrical or masonry knowledge, the contractor could enlist the help of a subcontractor to take care of those elements of the project.
Remember that if a subcontractor enters a contractual relationship directly with the owner of a property for improvement, regardless of the scope of the work, he or she is not a subcontractor under Montana law.
How long does a contractor have to pay a subcontractor in Montana?
Per Montana Code § 28-2-2103(2)(a), a contractor has seven days after receipt of payment from the owner to pay a subcontractor.