Orlando Subcontractor Agreement Lawyers
Whether you are a successful construction company needing to hire work from subcontractors, or if you are subcontractor looking for work, having a solid subcontractor agreement in place can protect your interests and rights. A subcontractor agreement can protect a contractor from assuming certain risks when subcontractors make mistakes. These agreements can also protect subcontractors because they can specify the scope of work, the timeline for when the work is to be completed, how much will be paid, and when payment will be made. You don’t want to end up doing work and not getting paid for the work. You also don’t want to end up in a dispute. A subcontractor agreement can protect both parties from these issues. Legal Counsel, P.A. employs subcontractor agreement lawyers in Orlando, Florida to assist you in the drafting or review of your subcontractor agreement whether you are a contractor or a subcontractor. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
What Should Be Included in a Subcontractor Agreement?
There are several provisions that should be included in most subcontractor agreements. These elements can protect both parties and clarify the rights and responsibilities of each party. What are these provisions?
- Scope of Work Provisions: Subcontractors often choose to have their own subcontractor agreements to protect themselves from shifting scopes of work as a project develops. You want to make sure you are very clear on what work you are doing. Contractors hiring subcontractors are also wise to specify the scope of work in as much detail as possible. You don’t want a subcontractor coming back to you telling you they never agreed to do the work you thought they would do. Furthermore, scope of work agreements may include reasonable timelines by which a job should be completed. With construction work, storms, rainy days, and weather can impact a job, so provisions should include reasonable delays.
- Material Procurement. A subcontractor agreement should specify who is responsible for providing the materials because this can impact the cost of the job. Leaving this part of your contract unclear can have an impact on your business, profits and costs, as well as effect expectations.
- Indemnification Clauses. Subcontractors should carefully read indemnification clauses in their subcontractor agreements. While some states protect subcontractors from indemnification clauses that are not fair, subcontractors should always consider whether they have insurance to cover any risks if they sign an indemnification clause. Contractors who plan to include indemnification clauses in their contracts should speak to a qualified subcontractor agreement lawyer like the Orlando, Florida attorneys at Legal Counsel, P.A. to learn about what provisions are most likely to be accepted by the courts. Contractors should not assume that an indemnification clause alone will protect them from liability if something goes wrong.
- Insurance Requirements. Construction jobs bring with them certain risks. Insurance requirements make clear which party must have insurance. Should both parties have insurance? Or will one party be solely responsible for insurance? Who will be required to have worker’s compensation insurance?
- Subcontractors will sometimes include warranty clauses in their agreements to give themselves a competitive advantage. If you stand by your work, a warranty clause allows you to remedy any problems that will arise and often gives the contractor hiring you peace of mind. However, warranty agreements must be reasonable and clear. Failure to be clear could result in you ending up with extra work or with warranty claims that are beyond the scope of work you believed you may have been signing up for.
- Subcontractor agreements should also include information about payment amounts and when payment will be issued. Subcontractors should watch out for “pay when paid” and “pay if paid” clauses. A pay when paid clause generally gives the contractor a timeline for when the payment will be issued and it doesn’t excuse the contractor from paying the subcontractor. A pay if paid clause is a little different and it stipulates that the subcontractor only gets paid when the contractor gets paid. You want to get paid if you are a subcontractor, so it’s important to understand which clause you’ll want to use and how these clauses could impact your business. If you are a contractor, a pay if paid clause can protect you should you not get payment for any reason.
- Breach of Contract Terms. What happens if a job takes longer than expected? What happens if the work is lower quality than expected? What happens if one party fails to pay the other. Breach of contract terms can protect both parties should the unexpected happen. If you are subcontractor being asked to sign an agreement by a contractor, you may want to have one of our qualified lawyers at Legal Counsel, P.A. in Orlando, Florida review your subcontractor agreement. If the contract or scope of work must be changed for any reason, breach of contract terms can make clear how these changes will be made. For example, what happens if costs increase? What happens if the project takes longer than expected? What happens when the scope of work changes?
- Specify the Parties Involved. It should go without saying, but subcontractor agreements should clearly specify the parties involved. If the subcontractor needs to bring workers to complete the job, this should also be addressed here. To whom will these workers be answerable? The contractor or the subcontractor?
If you are entering into a subcontractor agreement, protect your rights. The subcontractor agreement lawyers employed by Legal Counsel, P.A. in Orlando, Florida can help you with your subcontractor agreements so that your interests, rights, and company are protected. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
