A Pennsylvania Subcontractor Agreement is a document establishing the details of a relationship between a contractor and a subcontractor. It allows the former to specify the rules under which the latter will work.
The agreement specifies when the subcontractor shall complete the job, how much the contractor will pay the subcontractor, and what materials the subcontractor must provide.
What is an example of a situation where you might need a subcontractor agreement? Sometimes, a contractor requires resources he or she doesn’t have to complete a job, such as specialized equipment, labor, or skills. A subcontractor is a great way to fill that gap.
Subcontractors not only provide specialized skills but also offer access to common labor. This benefits contractors with small workforces on payroll, enabling them to take on larger jobs on a project-by-project basis.
Note that Pennsylvania law states explicitly that a subcontractor is not an architect or engineer who contracts with a general contractor.
What do I need to be a subcontractor in Pennsylvania?
Per the Home Improvement Consumer Protection Act, contractors and subcontractors must register with the Pennsylvania State Attorney General’s Office if they earn or expect to earn more than $5,000 worth of home improvement payments per year. City license requirements vary, so visit your city’s official website and learn exactly what you need to become a subcontractor.