A Subcontracting Agreement is a contract that sets out the terms and conditions between a contractor and subcontractor for the provision of services to a third party.
A Subcontracting Agreement is required when a business does not supply all the goods or services for a project directly but engages a subcontractor to provide some of the goods or services.
A Subcontracting Agreement specifies the terms of the relationship between the main contractor and the subcontractor.
- Whether the main contractor has already entered into a main contract;
- Who the contractor will be providing goods or services to;
- Details about the subcontractor;
- Whether the subcontractor will be responsible for everything agreed in the main contract or only certain aspects;
- Whether the subcontractor will indemnify the main contractor in respect of any work performed by the subcontractor; and
- If there is any agreed limit of liability for both the contractor and the subcontractor.