A New Jersey Subcontractor Agreement establishes the terms of a job between a contractor and a subcontractor.
It covers details including the payment amount and method, insurance, warranties, liability, dispute resolution, and other essential clauses like who provides materials for the job. A subcontractor agreement helps prevent conflicts and protects both parties from legal risks.
When they sign the form, they are legally bound to fulfill their obligations. The New Jersey Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq., outlines the state’s rules and procedures for public contracting. This includes bidding requirements and contract awards. It defines the rights and responsibilities of contractors and subcontractors. Although it refers to public works, you can also use it as a guide for private contracts.
The subcontractor’s obligation is to the general contractor, not the property owner. However, a subcontractor can file a lien on the property for unpaid work or materials under the New Jersey Construction Lien Law, N.J.S.A. 2A:44A-1 et seq. This law specifies the rules and procedures for filing, enforcing, discharging, or waiving liens.