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.
Subcontractor Definition
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.
Sample
Download a South Dakota subcontractor agreement template in PDF or Word format below.
