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Home Business Employment Subcontractor Texas Subcontractor Agreement

Texas Subcontractor Agreement

Updated July 1, 2023 | Legally reviewed by Susan Chai, Esq.

A Texas Subcontractor Agreement is a legal document that details the relationship between a contractor and a subcontractor for a specific job.

Subcontractor Definition

  • Texas Property Code § 28.001(B)(6)

“‘Subcontractor’ means a person who contracts to furnish labor or material to, or has performed labor or supplied materials for, a contractor or another subcontractor in connection with a contract to improve real property.”

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.

Create Your Texas Subcontractor Agreement in Minutes!

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