Need A Subcontractor - Contractor Contract
Hi,
I am a beginning general contractor in Ohio and am looking for a contract I can use to work with some of my subcontractors. I have been having a hard time finding something that fits this mold and was thinking that most of the people on this forum have likely used one from time to time. I would really appreciate anyone who can help me on this!
Thanks,
Brad
really hard to cover all your concerns in a general vague subcontractor agreement. Do you have specific needs such as a noncompete clause? Do you have detailed descriptions of the work to be done? Deadlines? How are you paying your workers? How often do you have worker turnover? Insurance liabilities? These are just a few off the top of my head. I really would hire a paralegal or attorney to flesh everything out. Hey, you can write it off next year.
I have each sub contractor fill out the W 9 form requesting their Fed ID or Soc Sec number prior to any payment to them.
I request a certificate of insurance be sent to me from their insurance co. Idealy they should have general liability and workers comp insurance.
Each state is a bit different but if your sub contractor cannot provide proof of workers comp ins, you should have this policy in place. Your ins co will audit you every 6 / 12 months to determine your payments to sub contractors.
If they did not provide you with a wc ins cert you will then have to pay the premium. It can be 8% - 45% of the total amount paid to the subcontractor depending upon the trade. Chech the State of Ohio website and your ins agent for more information about the rates.
Become familiar with AIA (American Institute of Architects) contracts. There are simple forms available for sub contractors as well as contracts between builder / owner for small and medium sized jobs. Spending even $100 for a few of these contracts and reading them over will give you a good knowledge base of the construction contract landscape.
http://aia.org/
There are also various resellers of the AIA forms. Looking on their websites you can view the documents.
http://www.topfloorstore.com/software_h/sft-dwn.shtml
Internet search: AIA Contracts:
http://search.yahoo.com/search?p=aia+contracts&sm=Yahoo%21+Search&fr=FP-tab-web-t&toggle=1&cop=&ei=UTF-8
[ Edited by happyhome on Date 05/14/2006 ]
As told by my Accountant, if you want to avoid being tax on that money being paid to you, you should note on the "for" line of the check that it is a repayment for money loaned to the corporation. Once the loan is repaid, then you can write a check to yourself in the normal way. I hope that helps![ Edited by Cheri562 on Date 05/15/2006 ]
I agree with the above replies. Also, I usually note "repay of loan to Company for office supplies, etc." so the expenditure can be plugged in properly to y/e financial statements.
[addsig]