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10 key reasons why having a Subcontractor Agreement in place is crucial

Are you an SME who uses subcontractors for your construction projects?

Here are some key reasons why having a subcontractor agreement in place is crucial:

  • Defined roles – clearly defined tasks for smoother operations.
  • Legal protection – protects both parties with clear terms and dispute resolution processes.
  • Risk management – manages project risks, insurance requirements and liabilities, even down to the simpler but important terms such as specifying sites are left clean and tidy.
  • Quality control – ensures work meets standards and complies with regulations.
  • Cost management – controls expenses with structured payment terms and schedules. This allows you time to retrieve your payments and to properly assess profitability.
  • Flexibility – tailored agreements for adaptable project needs.
  • Efficiency – outlines specifications for expected timeframes for project completion.
  • Scalability – easily adjust workforce based on project demands.
  • Professionalism – whilst an agreement made by text, call or WhatsApp can be convenient, it’s best to take a proactive approach to subcontracting work and ensuring that any potential issues are dealt with upfront by way of a subcontractor agreement. This demonstrates commitment and fosters positive collaborations.

By formalising agreements, you enhance project outcomes and build stronger partnerships in the construction industry. Being proactive and setting out the above prevents unnecessary disputes or litigation.

If you require subcontractor terms or need to review your subcontractor T&C’s, please do get in touch.

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