Subcontract Agreements: Items To Include

Subcontracts commonly contain clauses that describe the scope of work, payment terms, and other important aspects of the project for the understanding and protection of both the subcontractor and consultant/prime contractor. Note that these items are not comprehensive; check with an attorney to tailor the subcontract to meet the needs of your client and the project.

• Detailed scope of work, including relation of work to entire project
• Commencement provision
• Payment terms, defined in detail
• Requirement of automobile, general liability, workers’ compensation, professional and/or pollution liability insurance coverage
• Statement regarding knowledge of, and compliance with, health and safety regulations
• Favorable indemnification, only for your own negligence
• Unforeseen circumstances provision
• Change order procedures, including notice requirements and procedures
• Incorporation of client requirements to subcontractor
• Time/delays
• Dispute resolution
• No liability for delays due to discovery of hazardous substances
• Completion provision

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