What is a subcontractor contract?

A subcontractor contract is an agreement between two parties in which a subcontractor takes on part or all of the obligations of the general contractor. A subcontractor is not an official employee of the general contractor.

A general contractor may hire a number of subcontractors to perform a specific service on a large job. A subcontractor contract is an agreement signed by the subcontractor. The agreement transfers responsibility for the designated service from the general contractor to the subcontractor. The fee for completing the designated task is commonly stated in the subcontractor contract. These contracts are legally binding business-to-business agreements.