Subcontract Agreement for Comm'l Project

Subcontract Agreement for Comm'l Project

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Subcontract Agreement for Commercial Project

Subcontractor performs work under a contract with a general contractor, rather than the employer who hired the general contractor. Determining whether someone is a subcontractor depends on the facts in each case, but is generally determined by whether control over the manner and methods of the work is retained by the employer..

Strictly speaking, "subcontracting" is practiced only by a contractor, namely an individual or a company working for another entity under a contractual agreement. If the contractor then hires out some of the work to yet another organization, it is said to have subcontracted the work out. Subcontracting is most common in the construction industry: builders often subcontract plumbing, electrical work, drywalling, painting, and other tasks. But many other sectors engage in contract work as well, most notably government contractors of all kinds. The whole industry that supplies the U.S. Department of Defense typically operates under contract and uses many subcontractors in turn.

A commercial contract refers to a legally binding agreement between parties in which they are obligated to do or restrain from doing particular things. Commercial contracts can be written, verbal, or implied in a formal or an informal manner. Commercial contract can include all aspects of a business, such as hiring, wages, leases, loans and employee safety. A breach of commercial contract takes place when a contracting party fails to live up to the agreements.