Subcontractor Agreement Template

Full Description

This subcontractor agreement template is a contract format between a general contractor and a subcontractor hired to perform a specific part of the project. It sets out the scope, terms and conditions in writing before work starts, so both sides know what is expected.

What is a subcontractor agreement?

A subcontractor agreement, or subcontract, is a contract between a general contractor and a subcontractor. It defines the work the subcontractor will perform, the price and payment terms, the schedule, insurance and safety obligations, how changes are handled and how disputes or termination are dealt with. It often passes down relevant obligations from the general contractor’s main contract with the owner.

When to use it

• Hiring a trade contractor, such as electrical, plumbing, drywall or concrete.
• Bringing a specialty contractor onto a project for a defined package.
• Replacing handshake deals with written terms for repeat subcontractors.
• Setting out payment, retention and change order terms before mobilization.
• Meeting an owner or lender requirement for written subcontracts.

What’s included

The template is a PDF subcontractor agreement for construction projects. It provides a contract format between the general contractor and subcontractors, defining the scope, terms and conditions of the work.

How to fill it out

1. Enter the legal names and addresses of the general contractor and the subcontractor.
2. Identify the project, the owner and the main contract the subcontract relates to.
3. Describe the scope of work in detail, or attach a separate scope of work with drawing and specification references.
4. State the subcontract price, payment schedule, retention and invoicing requirements.
5. Set the start date, key milestones and completion date.
6. Confirm insurance, licensing and safety requirements, and collect proof before work starts.
7. Review change order, dispute and termination terms, then have both parties sign and date the agreement.

Tips

• Attach a detailed scope with clear exclusions. Most subcontract disputes are about scope.
• Make sure payment terms line up with how and when the owner pays you.
• Have the agreement reviewed by a lawyer familiar with construction law where the project is located.
• Prequalify subcontractors before you sign, including insurance and safety records.

Related templates and guides

• Scope of Work Template
• Subcontractor Scope & Agreement
• Supplier & Subcontractor Register
• Construction Contract Template
• Guide: Why Every Contractor Needs to Prequalify Their Subs

Frequently asked questions

What should a subcontractor agreement include?

At minimum: the parties, project details, a detailed scope of work, price and payment terms, retention, schedule, insurance and licensing requirements, safety obligations, change order procedures, warranty, dispute resolution and termination. Many agreements also include a flow-down clause tying the subcontractor to relevant terms of the main contract.

Is a subcontract agreement the same as a subcontractor agreement?

Yes. Both terms describe the contract between a general contractor and a subcontractor. You may also see it called a subcontractor contract or simply a subcontract. The content is the same: scope, price, schedule and the legal terms that govern the work.

What is a flow-down clause?

A flow-down clause makes the subcontractor responsible to the general contractor for the same obligations the general contractor owes the owner under the main contract, as far as they relate to the subcontractor’s work. It keeps the subcontract consistent with the prime contract on matters like specifications, schedule and documentation.

Do I need a lawyer to use a subcontractor agreement template?

A template gives you a solid starting point, but contract and lien laws vary by state, province and country. Have a lawyer familiar with construction law review your agreement, especially payment, indemnity, insurance and termination terms, before you use it on a project.

Who signs a subcontractor agreement?

Authorized representatives of both companies sign it: someone with signing authority for the general contractor, such as an owner, director or project executive, and the same for the subcontractor. Both parties should keep a fully signed copy before any work starts on site.