Roofing Subcontractor Agreement: A Guide to the Basics Done Right

All About Roofing Subcontractor Agreements

A roofing subcontractor agreement is an important legal contract that lays out the terms and conditions for a subcontractor to carry out work on a specified roofing project. Much like a general contractor agreement, it is critical that the provisions of the subcontractor agreement are consistent with the main construction contract. These agreements help ensure that work is completed on time and according to the specifications that the client requires.
While it may be important to have a written contract in place, it is also important to keep in mind that there are several terms and clauses included in a typical roofing subcontractor agreement that deal with risk, liabilities, and loss. All parties involved in the subcontractor agreement should understand how the risks are apportioned among the parties that are mentioned in the agreement, and others that are not mentioned at all.
While your subcontractors may be reliable and do a good job, roof related injuries can happen at any time. To provide an extra layer of protection , a roofing subcontractor agreement should include an indemnification clause. These clauses offer protection to the general contractor or builder, while also ensuring that the roofing subcontractor is fully aware of the risks they are taking when agreeing to an agreement.
It is common for states to require a contractor to obtain a license before performing work as a contractor on a roofing project. Experts agree that this requirement is beneficial as it provides some assurance to clients that their contractors have received adequate training. It also gives clients an opportunity to verify their contractor’s license.
Not every state requires licensing for roofers, so it is worth checking with each contractor to see if they have an active license before agreeing to hire them. All roofing subcontractor agreements should be clear on what work is expected of the subcontractor to prevent the main contractor from being held responsible for any failure to perform.

What You Need to Know About Roofing Subcontractor Agreements

When it comes to creating a roofing subcontractor agreement that is bulletproof, you need to know what it should contain. As with any construction contract, a roofing subcontractor agreement should be clear, concise, and specific. However, beyond those basic tenets, your roofing subcontractor agreement should address the following:
Scope of Work
The scope of work (SOW) should be clearly defined in the roofing subcontractor agreement. The scope of work is the portion of the roofing subcontractor agreement that outlines – in detail – exactly what, when and how the subcontractor will be required to complete the work. For example, how many square (or linear) feet of felt and shingle will the subcontractor be responsible for installing? Will the subcontractor provide his own material or will it be provided by the general contractor? If materials will be provided by the general contractor, when will they be delivered to the site? In short, the SOW should answer every question imaginable and then some in order to prevent costly litigation later on.
Payment Terms
It is no secret that construction projects are notorious for running late. When – and if – a roofing subcontractor is late in getting his work completed, will the general contractor expect a lower price based on a percentage of the work completed? Will the general contractor impose a daily penalty or interest charge if certain milestones are missed? Make sure these payment terms are spelled out clearly in the roofing subcontractor agreement so there are no surprises when it comes time to pay the subs and no arguments about who owes what.
Timeline
Closely related to payment terms are the timeline for the project. When does the project start? When will it be completed? What is the projected date of substantial completion? What is the penalty for lateness? Include an addendum to the roofing subcontractor agreement that outlines the project timeline.
Termination Clauses
What happens if you need to terminate the roofing subcontractor agreement before the project is complete? Does the contractor receive compensation for materials he has purchased or work he has already completed? Does the subcontractor have any say in whether or not he’s terminated? Does termination of the agreement suspend work immediately or allow time to complete a portion of the project before it’s terminated? Address these issues in the roofing subcontractor agreement before the tenuous relationship gets to a point where termination is required for any number of reasons.

Notable and Practical Legal Elements of a Roofing Subcontractor Agreement

In the complex world of construction, the legal considerations associated with a roofing subcontractor agreement can be numerous, even if not always apparent at first glance. A roofing subcontractor agreement doesn’t only regulate the relationship between a general contractor and a subcontractor; it can also incorporate many other relevant legal terms that can impact a company’s business as a whole. The specific laws and regulations that must be adhered to differ based on the jurisdiction and the type of roofing required. It is therefore critical to have an understanding of these requirements when drafting or entering into a roofing subcontractor agreement.
Licensing
The use of qualified and licensed contractors for any type of work is required in many jurisdictions, and you may need to do more than simply check that a subcontractor holds a license for the specific work you want them to do. Some areas of the law could require that not only be licensed, but also bonded and insured. The licensing requirements can vary based on the work the subcontractor will be doing, as well as their location—because regulations can differ throughout states, counties, cities and municipalities. Adherence to the proper licensing regulations is critical, as working with an unlicensed subcontractor could put your company at risk, potentially exposing it to liability for the consequences of mistakes made due to lack of experience or proper training.
Insurance
The minimum insurance requirements should absolutely be included in a roofing subcontractor agreement. This should encompass liability insurance, worker’s compensation, commercial insurance or other types of coverage that have been agreed to by both contracting parties. Again, specific insurance requirements can vary by jurisdiction, so it is crucial to closely consider those requirements in the agreement.
Dispute resolution
To ensure that any issues will be resolved quickly and fairly, having a clear dispute resolution mechanism outlined in your roofing subcontractor agreement is vital. One of the most common ways to solve disputes is through mediation, where the two parties work to find a quick and mutually beneficial way to resolve the matter. For issues that are not easily resolved, litigation is typically a last resort, as such cases are often lengthy and expensive. It is also possible to include arbitration in the roofing subcontractor agreement, which is generally a more efficient way to resolve a case than litigation. There are myriad legal factors to consider when drafting or signing a roofing subcontractor agreement, but as long as you are aware of all of these factors prior to entering into such an agreement, you will better position yourself to create a mutually beneficial and effective contract.

Legal Considerations When Crafting a Roofing Subcontractor Agreement

Enforceability and clarity are two of the Rules of Contract Drafting all good construction contracts should include. The roofing subcontractor agreement is no different, and must be careful to avoid ambiguous terms that could make key elements void. A roofing subcontractor agreement should set forth the scope of work for the subcontractor being hired, and be as specific as possible so that the subcontractor clearly knows what is expected of him, her or it. Without clarity, there could be arguments over what is included in the work, as well as arguments over who is required to perform tasks that could be included in the scope of work. For example, a roofing subcontractor may think that he is tasked with hauling off debris at the end of the job, but really the prime contractor may have intended for the contract to specify that the prime contractor would haul off the debris . The roofing subcontractor should be clear that it will not load up trash or deliver goods until its invoices have been paid. If the prime contractor or another party owes money to the subcontractor at the completion of the project, the subcontractor should make sure it will not be responsible for further performance if it is not paid.
Another rule of thumb is to avoid ambiguous or vague language. This applies to both technical and non-technical terms. If a roofing contractor does not have the proper licenses or bonding, it may not be allowed to perform work pursuant to the subcontractor agreement, and forfeiture of the right to recover for changed work is just one of the potential consequences. All roofing subcontractor agreements must abide by the licensing requirements of a given state, and therefore must clearly state what is required to be licensed to perform the work in question.

General Suggestions When Drafting a Roofing Subcontractor Agreement

Many of the challenges of contracting with a roofing subcontractor can be managed though effective communication and a clear understanding of goals and expectations. The most common challenges may include:
Scope changes and additions:
Scope changes and additions typically amount to either extra work on the part of the subcontractor or a reduction in the work originally agreed upon by the parties. To avoid confusion and an impasse in negotiations over what constitutes a scope change, the parties should retain a written log of all communications detailing the nature of the work in question and the agreements reached regarding both cost and time.
Delays:
Delays and time constraints are among the most commonly cited causes of dispute in the context of contracting with subcontractors. Imposing a reasonable time frame for work to be completed, and precisely specifying all deadlines in the written agreement, can help ensure that the project adheres to the proposed schedule. Second, in any construction project, it is important to remain open to the possibility that timing changes based upon external factors beyond the control of the parties. For unforeseeable changes in timing or project scope, such as those presented by inclement weather, open communication can help the parties work through the situation in a way that satisfies all parties.

Common Issues and Their Solutions

Leveraging technology can dramatically enhance the agreement process, from its creation to execution. Many software solutions are tailored to track subcontractor documentation, automatically generate agreements, and even sign them. But efficiency is only one part of the equation: how does software and technology improve the communication and transparency of the subcontracting process?
We now live in a digital world that has done away with the old methods of business paperwork. Everyone is now accustomed to instant communication and documentation. Integrating technological solutions into the lifecycle of a subcontractor agreement can vastly improve every facet of the process while significantly minimizing issues such as incomplete documentation , missed deadlines, and hours wasted over emails or phone calls.
Understandably, many roofing professionals, especially smaller or independent contractors, may question the need or desire for such technology. However, it’s no longer an advanced luxury and hasn’t been for several years. Numerous affordable, off-the-shelf products exist that make it incredibly easy to manage. While some may cut corners on tracking subcontractors, the tools you have at your disposal can streamline your entire workflow, allowing you to focus on growing your business and increasing your bottom line.