A residential subcontractor agreement is a legal document used by residential construction and renovation main contractors to hire another company or individual as a subcontractor to work on a residential property.
As subcontractors, these companies or individuals buy and bring their own tools. Unlike employees, they are responsible for their taxes and insurance.
When to Use
Contractors use residential construction subcontractor agreements to hire individuals and companies for specific job segments, such as painting a house or repaving a driveway for a residential property.
They can hire subcontractors for new construction and remodeling work as well as drywall, flooring, carpentry, electrical work, and heating.
Hiring a Residential Subcontractor
Hiring residential subcontractors can be difficult, especially if it’s your first time hiring them. Contractors should consider the following when hiring residential subcontractors:
Types of Residential Work
Contractors use residential subcontractors for two types of work:
- New construction: When a new building is being constructed, the buyer or owner enters into a prime contract with the general contractor. This contract gives the general contractor the right to subcontract other parties to perform specific services required to complete the building. General contractors usually subcontract specialized workers, such as plumbers, driveway pavers, foundation experts, and painters.
- Remodeling: Contractors may hire subcontractors if they don’t have the time or expertise to remodel a home. For instance, if the contractor’s client wants to remodel a kitchen, the contractor may hire a painter to speed up the remodeling.
Residential subcontractors’ duties vary.
- Residential Painters paint the interior and exterior of residential homes and buildings, set up rooms or exteriors for painting, and prepare paints and other supplies.
- Residential Plumbers install pipes for new buildings, check fittings after another job is finished, and perform preventive maintenance.
- Residential Paving subcontractors install an asphalt or concrete driveway. They can also repave a driveway damaged by heavy loads, weather, or time.
- Residential Landscaping subcontractors plant, maintain, and transplant flowers, plants, and nursery and greenhouse stock. They also install ponds, rock gardens, drainage systems, playground equipment, fences, drainage systems, and planters.
Benefits of Residential Subcontractors
The benefits of hiring residential subcontractors include:
- Cost-efficiency: Hiring subcontractors is much more cost-effective than hiring full-time employees.
- Expertise: Subcontractors often have more expertise than staff. Most subcontractors have worked in a specific field for many years and have had many opportunities to hone their skills.
- Flexibility: Contractors can hire contractors to work on several short-term projects and then part ways. In contrast, ending employee-employer relationships can be more complicated.
What to Include
At a minimum, your residential subcontractor agreement should include:
- The full names and addresses of the primary contractor, subcontractor, and client
- The date of the agreement
- Services provided by the subcontractor
- What the subcontractor is responsible for when performing their services, such as travel fees, materials, and equipment
- The primary location for the services completed by the subcontractor
- How the subcontractor will be paid
Residential Subcontractor Agreement Sample
Create a residential construction subcontractor agreement with PDF and Word templates: