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Sub Contract/Application??

Discussion in 'Business Fundamentals' started by snowbizplowing, Oct 14, 2009.

  1. snowbizplowing

    snowbizplowing Member
    Messages: 62

    Anyone got one i can use as a template? if you don't a PM would be greatly apprciated. thanks in advance any help!! :drinkup:
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Try this but you should have a lawyer draw one up for you.

    Join SIMA lots of good stuff. Use granview as a referral.

    Independent Snow Plowing Division
    Contractors Address
    Agreement Address
    Ph. #
    Snow Removal Services

    TERM: This agreement is made between XXXX Company, Address, Address
    (called “The Company”) Individuals Name:______________________________
    DBA:___________________________________________(called “Contractor”) it will be effective commencing November 1, 200_ and continuing until May 15, 200_.

    OBJECTIVE: The Company is in the business of providing snowplowing and removal, and similar services. Over the years it has developed a large number of accounts throughout “City, State” and the surrounding suburban area and is continuously adding additional accounts for these services. These accounts are serviced primarily by The Company brokering out the work to independent contractors who provide their own equipment and perform the actual work. The intent of this agreement is to establish a working relationship between The Company and Contractor for this purpose. In order to establish and effectuate this relationship, the parties agree as follows:

    1.CONTRACT SERVICES -Contractor will be engaged by The Company as an independent contractor and agrees to provide services for The Company’s accounts as directed by The Company during the period stated above. Contractor has the following equipment which will be provided, along with a qualified operator, at all times when requested by The Company:





    2.PAYMENT –The Company will pay the Contractor the rates shown above for the Contractor’s service and / or equipment. Payment will be made about 10 days after receipt of invoice from the Contract for services rendered in the prior month. It is recommended that invoices be submitted on (or about) the 1st day of each month. The Company requests only one invoice per month and under no circumstances will checks be issued more that once per month. No checks will be issued between the 1st of each month and the 10th of each month. In the event there are any damages done by the Contractor to the property of The Company’s customers, or poor workmanship that has caused The Company to have to credit the customer’s account, these damages will be paid for by the Contractor and shall be deducted from any amounts due the Contractor.

    3.TRAVEL TIME –Contractor will be paid for travel time between the various jobs that have been assigned to him. Agreed rate will begin at Contractor leaves his home (in plowing vehicle and ready to plow) and will end at completion of the last job. Special arrangements will be made if Contractor lives outside “City”, as travel time to first job will not be paid for long distances. No travel time will be paid from the last job site on the assigned route. The Company does not pay for “breaktime or downtime” The Company does not pay for time required for fueling the Contractor’s vehicle. If vehicle must be fueled prior to starting the assigned route, the start time will begin when Contractor leaves fueling point.

    4.CONTRACTOR’S EXPENSES –Contractor will provide all fuel for his equipment. All maintenance will be at Contractor’s expense and his equipment is to be property maintained to avoid breakdown during an urgent snow removal period. Contractor will not be paid when his equipment is broken down or inoperable.

    5.SUBCONTRACTOR AND INSURANCE –Contractor is engaged as an independent contractor and will not be considered an employee of The Company. Contractor will provide his own equipment as noted above, as well as any other tools or supplies which are necessary in order to provide the services which Contractor is engaged to provide. He must provide transportation for himself and his employees. He must have a telephone where he can be reached by The Company. He must provide any office or administrative services which he requires apart from The Company property and without cost to The Company. He must provide his own Worker’s Compensation Insurance for himself and for his employees. Contractor must provide auto liability insurance with recommended limits not less that $300,000. He will provide The Company with appropriate certificates of insurance. He will be responsible for payment to his employees for their work and for any required withholding, and pay overtime according to law. If for some reason additional insurance premiums and/ or taxes are levied against The Company because of the services provided by Contractor, then those costs will be paid to The Company by Contractor. The Company may withhold such costs from any amounts that it has due to the Contractor from The Company. If there are not sufficient amounts owing Contractor by The Company to cover such costs at the time they become due by The Company, then Contractor shall repay them to The Company within 30 days from his receipt of notice thereof from The Company. If payment is not made, The Company may proceed to collect from the Contractor by legal process and in such case the Contractor shall also be responsible for The Company’s reasonable costs and attorney’s fees. In any event, failure to provide a certificate of insurance will result in 25% of amounts due to Contractor being retained by The Company to cover additional insurance premiums that may be levied against the Contractor by his insurance company in order to adequately insure that apparent uninsured Contractor. This retainage will be paid to the Contractor within 30 days of receipt of a valid certificate of insurance, and will be paid in the following manner: 15% of retainage due to be paid within 30 days of receipt of actual “ certificate of Insurance” 10 % retainage to be paid if Comprehensive General Liability coverage in the amount of $100,000 is shown on the certificate.

    6.SUPERVISION –Contractor will be responsible for the work assigned to him and for the conduct of himself and his employees and will provide adequate supervision for them.. He will assure that his work and the work of his employees is provided in a good and workmanlike fashion and in accordance with the standards established by The Company. Within these limits, Contractor may perform the job as he sees fit. He agrees to coordinate with The Company and that The Company has the right to oversee the quality and timeliness of the work. However, The Company will have no obligation to provide supervision or control of Contractor’s manner of performing the work or of his employees.

    7.STARTING TIME –Time is of the essence to The Company’s customers. Therefore, the equipment shall be “rolling within 30 minutes of the time that The Company gives notice to the Contractor. The Contractor shall keep aware of weather conditions and when there is threatening weather, shall be ready to roll on a moments notice. In the event of the possibility of snowfall the Contractor agrees to keep The Company informed of whereabouts and availability if Contractor will not be at his regularly designated phone number.

    8. MINIMUN USAGE –The Company will not estimate the hours of usage for the above equipment nor guarantee a minimum usage, due to the uncertainty of winter weather patterns.

    9.NEW ACCOUNTS –It is understood that The Company has a large number of accounts for which it has done work over the past years and that it is continuously engaged in advertising and sales promotions in an effort to acquire new accounts. Therefore, all account for which work is done are accounts of The Company. Contractor may solicit new accounts for The Company. Such new accounts will be accounts of The Company even though they were procured for The Company by Contractor. Contractor will receive a commission for all new accounts secured by him, which commission will be equal to 5% of The Company’s gross billings to that account for the first year. The commission will be paid on May 15th, providing that The Company has been paid in full by the account.

    10.NON-COMPETE –Because The Company has expended many years and large amounts of money developing and maintaining the account; which it has, and because Contractor will be placed in contact with many of those accounts in performing the services under the Agreement, Contractor agrees that he will not compete with The Company as an employee, Sub-Contractor, Contractor or in any other capacity, by providing the services which are the subject of this Agreement for any of The Company’s customers for a period of two (2) years after the termination, for any reason whatsoever, of his engagement with The Company as an independent contractor. In addition, Contractor will not disclose to any other person, or uses on his own behalf, any customer names or other confidential information gained from The Company. The parties agree that in the event of Contractor’s violation of this agreement not to compete, The Company will be entitled to both temporary and permanent injunctions and, at its option, liquidated damages in an amount equal to the total gross amount which Contractor earns from competing jobs during the two (2) year period after termination with The Company, plus The Company’s costs of enforcing this Agreement including its Court costs and attorney fees.

    11.BILLING AND ADVERTISING –The Company will be responsible for billing customers for the work done by Contractor hereunder and for collecting from those customers. It will continue its advertising and sales promotion activities in order to obtain new accounts and maintain existing accounts.

    12.RADIOS –The Company may, at its option, provide a two-way radio for use in Contractor’s equipment, If his route requires one, without charge, if Contractor will agree to pay the installation fees. These radios will remain the property of The Company. Contractor will be responsible for loss or damage of radios or any other leased equipment. Contractor will be required to add this piece of equipment to his automobile insurance policy and have The Company named as “Loss Payee” in case of loss or damage of radio(s).
    13.TAXES –The Company will not be responsible for any withholding of income taxes, Social Security, or the like from amounts paid to Contractor under this Agreement. It will not be providing Worker’s Compensation Insurance for Contractor. It will not provide any company benefits of any kind for Contractor. Its obligation to Contractor will be solely those set forth in this Agreement. The Company will send IRS form 1099 to Contractor at his last known address, after the end of the calendar year as provided by law.

    14.TERMINATION –It is the intention of the parties that this Agreement, and the relationship between them, will continue until terminated by the parties. Either of the parties has right to terminate the Agreement at any time by giving written notice to the other. However, when the Company obtains a job or route and offers the work on that job to Contractor, then if Contractor accepts the work, he will not terminate the Agreement, except for cause, until that job or route is completed. The Company may terminate the Agreement immediately at any time for cause.

    15.CHARGING AGAINST COMPANY –Contractor will not use the name of The Company or attempt to use The Company’s credit, for the purpose of buying or charging fuel, parts, tires or anything else that would inure to Contractor’s benefit. If anything is charged to The Company without authorization, Contractor can expect The Company to take whatever legal action is necessary to seek reimbursement and will be responsible for all expenses incurred by The Company. Also this would be cause for termination of this Agreement by The Company.

    16.DAMAGES –Contractor understands that he will be fully responsible for any damage to the property of any of The Company’s customers which is done by Contractor or any of his employees. The Company may withhold funds to repair such damage from any amounts owed by The Company to the Contractor. If the amount of the damage exceeds any amount owed by The Company to the Contractor at the time the amount of the damage is ascertained, then the Contractor shall pay over to The Company the difference within 30 days thereafter. If payment is not made, The Company may pursue collection by legal means and the Contractor shall then also be responsible for The Company’s costs and attorney fees.

    17.MISCELLANEOUS –This Agreement is made in and will be construed according to “State” Law. If any part of the Agreement be found invalid, it will not invalidate the remainder of the Agreement. The Agreement may be amended only in writing, signed by both parties.

    Company Name:___________________________________________________
    Address _________________________________________________________
    XXXXX Company
  3. Midwest BuildIt Inc

    Midwest BuildIt Inc PlowSite.com Addict
    Messages: 1,280

    I really hope you didn't just write that all out GV. if so. you have way too much time on your hands. lol.
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    DRINK COFFEE: Do Stupid things Faster and with more Energy.
  5. Midwest BuildIt Inc

    Midwest BuildIt Inc PlowSite.com Addict
    Messages: 1,280

  6. snowbizplowing

    snowbizplowing Member
    Messages: 62

    Thanks for the reply guys i really appreciate it... i am going to join sima w/in the next day or two waiting on a business loan to get funded to do some more advertising and join more trade associations. thanks again grandview and i will be SURE to add you as my reference!!
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Thanks and remember it's spelled G-R-A-N-D-V-I-E-W !:waving:
  8. snowbizplowing

    snowbizplowing Member
    Messages: 62

    Done and Done!!!

    Your registration has been submitted and will be processed.
  9. CBJason

    CBJason Junior Member
    Messages: 9

    Pretty detailed contract...is this the norm for subs? Seems to put a pretty big onus on the sub and not much of anything on the company.