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Define the needs of the project. ... Finalize the provisions of the agreement, such as the due dates. ... Clarify the terms for payment. ... Write a draft of the contract and send it to the subcontractor for her review. ... Decide on a method to handle disputes, should one arise between you and the subcontractor.

A builder, usually a contractor or subcontractor, is usually responsible for defects caused by a failure to conduct work according to design specifications, or in line with accepted industry standards.

What is a contractor's sworn statement? A sworn statement is a construction document that lists the contractors and suppliers that provide material or labor to a construction project. It includes information about who is owed money, how much they are owed, and the remaining balance on their contract.

Subcontractor is a person who is awarded a portion of an existing contract by a principal or general contractor. Subcontractor performs work under a contract with a general contractor, rather than the employer who hired the general contractor.

A general contractor is a party with the responsibility to oversee a construction project and who enters into the prime contract with the property owner. The general contractor is sometimes known as the direct contractor, and this is very important when it comes to getting paid.

A subcontractor works independently and provides services as specified in a contract or agreement and can accept or refuse any additional work. An employee works within the business and is considered part of the business. Subcontractors use their own tools and/or equipment which are required to complete the work.

A subcontractor is a worker who is not your employee. You give a Form 1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping his or her own records and paying his or her own income and self-employment taxes.

A prime or direct contractor is a contractor that has a contract directly with the property owner. A general contractor refers to a contractor in charge of hiring subcontractors and coordinating their work, keeping the job on track for timely and on-budget completion.

Employment Status A subcontractor receives a portion of what the contractor earns for an overall job. Contractors receive payment per job or by the hour. As a contractor, you a receive 1099 form, and the IRS determines if a worker is a contractor or an employee.

State and county; address of the project. General contractor name and address. Subcontractor/supplier name and address (if this person is filling out the sworn statement). Brief description of the contract. A table that lists: