Subcontractor agreement template

This Subcontractor Agreement (the "Subcontract") is made on Subcontract date between Contractor business name (the "Contractor") and Subcontractor business name, license number Subcontractor license number (the "Subcontractor").

1. Project and main contract

The Contractor has a contract with Owner name (the "Owner") for the project known as Project name at Project address (the "Project"). For its work, the Subcontractor is bound to the Contractor by the terms of that main contract to the same extent the Contractor is bound to the Owner, and the Contractor will provide a copy of the relevant parts on request. If this Subcontract and the main contract conflict, the stricter requirement applies.

2. Scope of work

The Subcontractor will furnish all labor, materials, equipment and supervision to complete the following work: Scope of work, according to the plans and specifications dated Plan set date. Excluded from this scope: Exclusions.

3. Price

The Contractor will pay the Subcontractor Contract price for the work, or the unit prices listed here if any: Unit prices. The price includes all taxes, permits for the Subcontractor's trade, and delivery.

4. Payment, retainage and lien waivers

1. The Subcontractor will submit a pay application for work completed by the Pay application day of each month, in the form the Contractor requests.
2. The Contractor will pay each approved application within Days after Owner payment days after it receives the Owner's payment for that work, and in any case within Outside payment days days after approval, unless the payment is withheld for a reason stated in this Subcontract.
3. The Contractor will hold back Retainage percent percent of each payment as retainage, released within Days to release retainage days after the Owner releases retainage on the Subcontractor's work, or sooner if the law requires.
4. With each pay application the Subcontractor will provide a conditional lien waiver for the amount requested, and after each payment clears, an unconditional waiver for the amount paid, along with waivers from its own suppliers and lower-tier subcontractors.

The Contractor may withhold payment for defective work not corrected, unpaid claims by the Subcontractor's suppliers or workers, missing lien waivers or insurance certificates, or damage the Subcontractor causes, but only in an amount reasonably needed to cover the issue.

5. Schedule and coordination

The Subcontractor will start work on or about Start date and complete it by Completion date, following the Contractor's project schedule, attending coordination meetings when asked, and cleaning up its debris daily. The Subcontractor will tell the Contractor in writing within three working days of any delay it believes entitles it to more time.

6. Changes

No change in the work, price or schedule is valid unless it is in a written change order signed by both parties before the changed work begins, except in an emergency affecting safety. The Subcontractor must submit any claim for extra cost or time in writing within Days to submit a claim days of the event that caused it.

7. Insurance

Before starting, and for as long as it is on the Project, the Subcontractor will carry commercial general liability insurance of at least General liability limit per occurrence, commercial auto insurance, workers' compensation as the law requires, and Other required coverage. The Contractor and the Owner will be named as additional insureds on the liability policy, and the Subcontractor will deliver a certificate of insurance before starting work.

8. Indemnity

To the fullest extent the law allows, the Subcontractor will defend, indemnify and hold harmless the Contractor and the Owner from claims for injury, death or property damage to the extent caused by the negligence or other fault of the Subcontractor, its lower-tier subcontractors, suppliers or anyone they employ. This does not require the Subcontractor to indemnify anyone for their own negligence.

9. Safety and compliance

The Subcontractor is responsible for the safety of its workers, will follow OSHA rules and the Contractor's site safety program, and will hold all licenses its trade requires. It will report any injury or incident on the Project to the Contractor the same day.

10. Independent contractor

The Subcontractor is an independent contractor. It controls the means and methods of its work, provides its own tools, and is solely responsible for its workers' wages, taxes, benefits and supervision.

11. Warranty

The Subcontractor warrants its work and materials against defects for one year from substantial completion of the Project, or for any longer period the main contract requires for that work, and will correct defects promptly at its own cost.

12. Default and termination

If the Subcontractor fails to perform any part of this Subcontract and does not begin to cure the failure within Days to cure working days of written notice, the Contractor may supplement the Subcontractor's workforce or finish the work with others and deduct the reasonable cost from amounts due, or end this Subcontract. The Contractor may also end this Subcontract for its own convenience with written notice, paying for work properly performed to that date and reasonable demobilization costs, but not profit on work not performed.

13. Disputes and general terms

The parties will try to resolve disputes by meeting in good faith before taking any other action. This Subcontract is governed by the laws of the state where the Project is located, is the entire agreement between the parties, can be changed only in writing signed by both, and may be signed electronically. The person signing for each party confirms they are authorized to do so.

Subcontractor signer's title: Subcontractor signer title Phone: Subcontractor phone Email: Subcontractor email