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Subcontractor agreement template

A subcontractor agreement passes part of a main contract to another business. It ties the subcontractor’s scope and schedule to the main job, says when the subcontractor is paid, and covers insurance, safety and change orders.

This template is a general starting point, not legal advice. Laws differ between countries and states, so have it checked before signing anything important.

Fill in the details

Anything you leave empty becomes a blank line in the document, to fill in by hand or during signing.

Opens the signature request with this document and a signature box for each party already placed.

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Subcontractor Agreement

This Subcontractor Agreement is made on __________ between __________ (the "Contractor") and __________ (the "Subcontractor") for the __________ (the "Project"), owned by __________.

1. Work

The Subcontractor will perform: __________ (the "Work"), in line with the plans, specifications and permits for the Project.

2. Schedule

Schedule: __________. The Subcontractor will tell the Contractor promptly about anything that may cause delay.

3. Price and Payment

Price: __________. Payment: __________. Each invoice will describe the Work completed.

4. Changes

Changes to the Work, price or schedule are made only by a written change order signed by both parties before the changed work starts.

5. Licenses, Permits and Safety

The Subcontractor holds the licenses its trade requires, follows applicable building codes and safety rules, supervises its own workers, and keeps its work area safe and clean.

6. Insurance

The Subcontractor will carry __________ and give the Contractor certificates of insurance before starting.

7. Warranty

The Subcontractor will correct defects in the Work reported within one year of completion, at its own cost, unless the main contract sets a longer period.

8. Independent Business and Ending the Agreement

The Subcontractor is an independent business, responsible for its own taxes, workers and equipment. Either party may end this Agreement if the other seriously breaks it and does not fix the problem within 7 days of written notice; completed Work is paid for.

Contractor

__________

Subcontractor

__________

Match it to the main contract

The subcontract should not promise less than the main contract requires, or the contractor carries the gap.

  • Refer to the drawings or specification sheets by number.
  • Pay-when-paid and pay-if-paid clauses are treated differently from state to state; some states limit them.
  • Collect certificates of insurance before work starts, not after.
  • Lien rights and notice deadlines are set by state law — check them for the project’s state.

Frequently asked questions

A small percentage held back from each payment and released when the work is complete, as security for finishing and fixing defects.

No. The main contract is between the owner and the contractor. The subcontract should reference it so the subcontractor knows the requirements that apply.

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