A professional services subcontractor agreement or a subcontractor agreement for professional services is a contract between a primary contractor and a subcontractor providing a specialized service. The primary contractor has a prime contract with the client authorizing them to hire a subcontractor for certain tasks.
Subcontractors work for themselves, not for the client or primary contractor. Unlike employees, they are responsible for their taxes, equipment, and insurance.
When to Use
Professional services subcontractor agreements are commonly used to hire service providers for work such as plumbing services, writing and editing, laboratory analysis, and translation services. These services are usually project-based rather than continuous.
Hiring suitable subcontractors can be challenging, especially if you don’t know what to look for. Keep the following in mind when hiring.
Common Professional Services
Primary contractors should hire subcontractors to save money and time. Many services are project-based and infrequently needed, decreasing the need to hire full-time employees.
Professional services are highly technical, and some of them include:
- Plumbing services
- Electrician services
- Home maintenance services
- Accounting services
- Consultancy
- Bookkeeping
- Management of construction and other projects
- Translation services
- Operating equipment
- Data or statistical analysis
- Legal document review
- Software development services
- One-time web design or development services
- Editing or writing services
- Marketing services
What to Include
A subcontractor agreement for professional services should include the following:
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- The identities of the primary contractor and subcontractor: The beginning of the contract should state both parties’ full names and addresses.
- The client: You should also mention the contractor’s client’s name and address.
- Services provided by the subcontractor: The contract should outline the scope of services the subcontractor provides. If the subcontractor has a lot of tasks, consider attaching a list of services in an exhibit.
- The subcontractor’s right to hire sub-subcontractors: Mention whether the subcontractor has the right to hire sub-subcontractors.
- How the subcontractor will be paid: The agreement should explain how the primary contractor will pay the subcontractor. Depending on the parties’ preferences and needs, the contractor can pay the subcontractor a periodic fixed wage or a set fee.
- Payment method: Talk about how the primary contractor will pay the subcontractor. For example, the primary contractor can make a lump sum payment after the services are complete or use scheduled payments.
- What the subcontractor will provide: State what tools and materials the subcontractor will provide.
- Start and end dates: Mention when the subcontractor will begin and stop working.
You should also mention whether the subcontractor has any employees and whether the subcontractor will be responsible for paying the employees.
Professional Services Subcontractor Agreement Sample
Use our PDF and Word subcontractor agreement template for professional services to create your own contract.
