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A subcontractor is a person or business which undertakes to perform part or all of the obligations of another's contract, and a subcontract is a contract which assigns part of an existing contract to a subcontractor. A general contractor, prime contractor or main contractor may hire subcontractors to perform specific tasks as part of an overall ...
A subcontractor agreement is a contract primarily between a builder or a principal contractor and subcontractor. It outlines the perimeters of specialist work to be done for the construction project. [ 6 ]
[3] [4] The terms of the agreement apply to all contractors and subcontractors who successfully bid on the project, and supersedes any existing collective bargaining agreements. [3] PLAs are used on both public and private projects, and their specific provisions may be tailored by the signatory parties to meet the needs of a particular project. [4]
Contracts directly between the Government and its contractors ("prime contracts") are governed by federal common law. Contracts between the prime contractor and its subcontractors are governed by the contract law of the respective states. Differences between those legal frameworks can put pressure on a prime contractor. [citation needed]
Sub-contracts between the main contractor and its subcontractors (both for sub-contractors selected by the employer and for other sub-contractors): the DOM/1 sub-contract is suitable for use with the JCT's standard building contract, and the DOM/2 sub-contract is aligned with the design and build contract. [11]
Construction law builds upon general legal principles and methodologies and incorporates the regulatory framework (including security of payment, planning, environmental and building regulations); contract methodologies and selection (including traditional and alternative forms of contracting); subcontract issues; causes of action, and liability, arising in contract, negligence and on other ...
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