A South Dakota subcontractor agreement is a legal document outlining the relationship between a contractor and a subcontractor. The contractor has an established contract with a client for work on real property.
A subcontractor agreement documents the portion of the job a subcontractor performs for the general contract. A subcontractor agreement may be necessary to complete a range of specialized work. It specifies the scope of the subcontractor’s work, when work is due, how much the contractor will pay the subcontractor, and other details like insurance requirements.
A “subcontractor” is “a person contracting with a prime contractor to perform all or part of a realty improvement the prime contractor has contracted to perform.
For highway construction projects, a subcontractor includes any person contracting with a prime contractor to perform any of the following services as part of the project: traffic control, striping, flagging, operation of pilot cars, signing, landscaping, seeding, sodding, mulching, and erosion control.
A prime contractor shall issue a certificate to a subcontractor showing the prime contractor’s valid contractors excise tax license number. The form shall be prescribed by the secretary of revenue. Any subcontractor who fails to retain a certificate and a record of project designations is considered a prime contractor and is subject to tax under this chapter.
How do I become a contractor in South Dakota?
South Dakota leaves most licensing tasks up to local jurisdictions. The only contractors required to carry state-issued licenses are electricians and plumbers. Everyone else works with their local city or county.
However, all contractors engaged in construction services must register for a South Dakota Contractor’s Tax License with the Department of Revenue.
Download a South Dakota subcontractor agreement template in PDF or Word format below.