A New York Subcontractor Agreement outlines a subcontractor’s rights and responsibilities concerning a general contractor and construction job.
The agreement specifies the scope of work, expected financial compensation, and payment method.
A general contractor hires a client, the property owner, directly. That contractor may hire a subcontractor to obtain additional or specialized help on a project. These are the main difference between the two parties.
Contractor-subcontractor relationships typically occur in construction but can be in another industry. A contractor is responsible for completing 100% of the work related to the contracted job.
Sometimes, however, that requires the contractor to bring in another person or entity to complete a portion of it, 5%, for example. In this case, the subcontractor is only responsible for the tasks outlined in the subcontractor agreement.
Consequently, the contractor pays the subcontractor according to the services he or she provides.