what is a sub subcontractor

Tiered Services Agreement: Lower-Tier Contractor Engagement

Instructions for Use

• Complete all bracketed fields with the legal names and contact information of the parties involved.
• Ensure that the Scope of Work attached to this agreement aligns with the primary contract between the General Contractor and the Prime Contractor to maintain flow-down obligations.
• Both parties must sign and date the document; retain a copy for your project files and provide a copy to the General Contractor if required by the prime agreement.

Parties & Definitions

This Agreement is entered into on [Date] by and between:

Contractor: [Full Legal Name of Contractor], with a principal place of business at [Contractor Address] ("Contractor").

Lower-Tier Contractor: [Full Legal Name of Lower-Tier Contractor], with a principal place of business at [Lower-Tier Contractor Address] ("Lower-Tier Contractor").

Project: [Project Name/Number] located at [Project Site Address].

Prime Contract: The agreement between the Owner and the General Contractor regarding the Project.

Operative Clauses

1. Scope of Work: The Lower-Tier Contractor shall perform the services described in [Exhibit A: Scope of Work] in accordance with the terms of the Prime Contract. The Lower-Tier Contractor acknowledges that they have reviewed the Prime Contract and agree to be bound by its terms as they apply to the work performed hereunder.

2. Flow-Down Obligations: The Lower-Tier Contractor assumes toward the Contractor all the obligations and responsibilities that the Contractor assumes toward the General Contractor or Owner under the Prime Contract, insofar as they are applicable to the work performed by the Lower-Tier Contractor.

3. Payment Terms: The Contractor shall pay the Lower-Tier Contractor within [Number] days of receipt of payment from the General Contractor for the work performed by the Lower-Tier Contractor, subject to the approval of said work by the General Contractor and/or Owner.

4. Insurance: The Lower-Tier Contractor shall maintain, at its sole expense, [Type of Insurance, e.g., General Liability/Workers Comp] coverage in the amount of $[Dollar Amount] and shall name the Contractor and General Contractor as Additional Insureds.

5. Independent Contractor Status: The Lower-Tier Contractor is an independent contractor. Nothing in this Agreement shall be construed to create a partnership, joint venture, or employer-employee relationship between the parties.

6. Termination: Either party may terminate this Agreement upon [Number] days' written notice if the other party commits a material breach of its obligations herein.

Signature & Acknowledgment

Contractor Signature: __________ Printed Name: [Name] Title: [Title] Date: [Date]

Lower-Tier Contractor Signature: __________ Printed Name: [Name] Title: [Title] Date: [Date]

Legal Disclaimer: This document is a general framework and does not constitute legal advice. Requirements for tiered contracting vary significantly by state and local jurisdiction. Consult with qualified legal counsel to ensure compliance with lien laws, prompt payment statutes, and specific project requirements.