A Texas Subcontractor Agreement is a legal document that details the relationship between a contractor and a subcontractor for a specific job.
It outlines the subcontractor’s scope of work, the fee the contractor will pay the subcontractor, the project deadline, and job requirements like transportation and insurance.
Often, a general contractor accepts a job knowing he or she does not have the in-house capability to complete all aspects of the project.
For example, the contractor may not have the specialized skills or equipment to handle masonry-related matters. In that situation, he or she could find someone who does – a subcontractor. The subcontractor performs only the duties the general contractor hires out for.
Frequently Asked Questions
Can a subcontractor sue a homeowner in Texas?
Generally, a subcontractor cannot sue a homeowner as there is no contract between the subcontractor and the homeowner. However, the subcontractor may be able to file a lien, such as a mechanic’s lien, on the homeowner’s property.
How long does a contractor have to pay a subcontractor in Texas?
Under the Texas Prompt Payment Act, specifically Texas Property Code § 28.002(b), the contractor must pay the subcontractor no later than the seventh day after the date the contractor receives payment from the owner.