Subcontractor Agreement Template
We’ve worked closely with legal experts and proofreaders to design a simple subcontractor agreement (PDF and Word), so you can save money and time as you scale your operations. Think of our document as a subcontractor agreement form where you merely fill it out and sign. It’s as simple as that!
Free Subcontrator Agreement Template for Download
We’ve worked closely with legal experts and proofreaders to design a simple subcontractor agreement (PDF and Word), so you can save money and time as you scale your operations. Think of our document as a subcontractor agreement form where you merely fill it out and sign. It’s as simple as that!
What’s in this template?
- • Project end date
- • Services provided
- • Compensation details
Click below to access our free subcontractor agreement today
What is a subcontractor agreement?
A subcontractor is an individual or a business who does work for a contractor as part of a larger project.
Contractor subcontractor agreements are most common in the building industries as specific skills are hired out to complete extensive construction contracts.
For example, a contracted project manager may hire a bricklaying company to build a new school in a new suburban development.
A subcontractor agreement is then a formal document between a contractor and subcontractor laying out the terms and conditions as it relates to the work to be performed.
Keep in mind that a subcontractor is only accountable to the contractor that is hiring them, and are there to perform their role in that agreement.
DISCLAIMER: We are not lawyers or a law firm and we do not provide legal, business or tax advice. We recommend you consult a lawyer or other appropriate professional before using any templates or agreements from this website.
Download our Subcontractor Agreement
You’re likely incredibly busy trying to coordinate multiple client projects. So we’ve done the hard work of developing a subcontractor agreement template to save you legal fees and time so you can quickly scale your operations and take on more jobs.
Click below to get a free copy of our subcontractor agreement doc
Why is a subcontractor agreement important?
It can get incredibly confusing when a contractor hires a contractor who then hires another subcontractor to do work as part of a large project.
The risk here is that details are misinterpreted, payments are missed, and work isn’t completed on time. These are all situations that can completely derail a project.
A subcontractor agreement keeps operations tight, focused, and consistent across all parties involved.
When to use a contractor subcontractor agreement
Depending on the size and scale of your business and projects, you may need to use subcontractor agreements all the time.
Each time you need to outsource services to complete a job, you’ll need a subcontractor agreement.
As a contractor or project manager, you likely have a good feel for your gaps to fulfill a project. Even before taking on a new client, you may reach out to your network to lock in subtractors to make sure you can complete the project.
Another situation where you’ll likely need a subcontractor agreement is if your current subcontractors are no longer able to perform their work and need a replacement.
Lastly, you may need to use subcontractor agreements to extend contracts if more time is required to complete the job.
Download our Subcontractor Agreement Sample
You’re likely incredibly busy trying to coordinate multiple client projects. So we’ve done the hard work of developing a subcontractor agreement template to save you legal fees and time so you can quickly scale your operations and take on more jobs.
Click below to get a free copy of our subcontractor agreement doc
The elements of a great subcontractor contract
Below are three best practices as it relates to constructing an effective subcontractor agreement.
What’s the scope of the job?
A skilled project manager understands the vision of a project while also having a good handle on all of the moving parts to bring the project to life.
Every subcontractor agreement must be specific to the services required. Too much detail and it confuses the role of the subcontractor. Too little information, and it’s not clear what is needed from each subcontractor.
The key to a high-quality subcontractor service agreement is that it’s precise when it comes to articulating the scope of the work expected from the subcontractor.
How and when will you pay subcontractors?
If you’re a busy contractor, you’ll likely be using the same subcontractors repeatedly. Your contacts are one of your most significant assets and enable you to charge your clients more to access your database of reliable professionals.
That’s why it’s critically important to nurture these relationships and ensure they are paid consistently in a reasonable period.
Nothing will hurt your relationships more than not paying your subcontractors.
When compiling your subcontractor agreement, be clear about what you’re prepared to pay and when. For example, will you be paying a percentage upfront and upon completion? Or will you pay milestones? Whatever method you choose, make it super clear in your agreement, and follow through on your promises.
How will you handle indemnity?
Indemnity can be a tricky subject when it comes to subcontractor agreements. We’re referring to who is ultimately liable for any negligence or law claims when things go wrong. Who assumes that responsibility?
It’s up to you how you handle indemnity in your subcontractor agreement. However, we suggest that you at least make your subcontractors liable for any third party claims about their work.
Frequently Asked Questions
FAQ about our Subcontractor Agreement Template
What you include in your subcontractor agreement is mostly dependent on the scope of your client project. However, generally, an agreement should include:
- Parties involved
- Project end date
- Services to be provided
- Compensation details
- Warranties
- Indemnity and insurance
- Termination details
- Dispute resolution
- A section for parries to sign
While subcontractors and employees on the surface are similar, their roles are quite different.
An employee has an employment contract with an employer and is expected to work regularly, whether it’s casual, part-time, or full time. Employees are on the payroll and sometimes have access to employment benefits such as paid leave and pension plans.
A subcontractor, on the other hand, is a business entity that is explicitly hired to fulfill a service. A subcontractor will invoice a contractor for the work they conducted during a period. Subcontractors may work with multiple contractors and are not entitled to employment benefits.
An employee has an employment contract with an employer and is expected to work regularly, whether it’s casual, part-time, or full time. Employees are on the payroll and sometimes have access to employment benefits such as paid leave and pension plans.
A subcontractor, on the other hand, is a business entity that is explicitly hired to fulfill a service. A subcontractor will invoice a contractor for the work they conducted during a period. Subcontractors may work with multiple contractors and are not entitled to employment benefits.
Yes, absolutely. We realize that agreements may need to be modified depending on the scope of a project. That’s why we’ve made Word and PDF file types for our template to make it easy for you to make changes as you see fit.
Just keep in mind that you make significant changes to the doc, you may want to seek legal advice to ensure your updated template is still compliant.
Just keep in mind that you make significant changes to the doc, you may want to seek legal advice to ensure your updated template is still compliant.
document preview
Subcontractor Agreement
Subcontractor Agreement
Parties
– This Subcontractor Agreement (hereinafter referred to as the “Agreement”) is entered into on ______________ (the “Effective Date”), by and between __________________________, with an address of ______________ (hereinafter referred to as the “Subcontractor”) and ______________ with an address of ______________ (hereinafter referred to as the “Contractor”) (collectively referred to as the “Parties”).
Term
– This Agreement shall be effective on the date of signing this Agreement (hereinafter referred to as the “Effective Date”) and will end on ______________.
– Upon the end of the term of the Agreement, this Agreement will not be automatically renewed for a new term.
Services Provided
– Hereby, the Subcontractor agrees to provide the services listed below (hereinafter referred to as the “Services”):
- ____________________________________
- ____________________________________
- ____________________________________
- ____________________________________
- ____________________________________
- ____________________________________
- ____________________________________
- ____________________________________
– The Parties agree that the Services must be completed by _______________________________________________________________________________________________________________________.
Compensation
Hereby, the Contractor agrees to pay the Subcontractor an amount of ______________ for the Services provided by the Subcontractor set forth in this Agreement.
-The amount of the total cost of the Services is ______________.
– An amount of ______________ will be provided at the signing of this Agreement.
– An amount of ______________ will be provided at completion.
Payment
– Hereby, the Parties agree that the final payment of the Services will be made within ______________ days upon the completion of the Services set forth in this Agreement.
– The Parties agree that the means of payment will be via _______________________________________________________________________________________________________________________.
Warranty
– Hereby, the Subcontractor warrants the Services provided for a period of ______________ years against any possible defects in terms of materials and/or workmanship.
Indemnity And Insurance
– Hereby, the Subcontractor agrees to indemnify the Contractor as well as defend him/her and any affiliated entities and/or individuals, if any, from any claims that may arise from third parties that relate to the Subcontractor’s work.
– The Parties agree that the Subcontractor will hold at least the minimum required insurance coverage related to Workers’ Compensation, Commercial General Liability, and Automobile Liability.
Relationship Between The Parties
– Hereby, the Parties agree that this Agreement is a subcontractor agreement where the Subcontractor is an independent contractor who provides the services hereunder.
– Under no circumstances shall the independent contractor be considered an employee, representative, agent or partner.
– This Agreement does not create any other partnership between the Parties.
Exclusivity
– The Parties agree that this Agreement is not an exclusive arrangement and that the Parties are entitled to enter into other similar agreements with other parties.
Termination
– This Agreement may be terminated in case the following occurs:
- Immediately in case one of the Parties breaches this Agreement or one of the conditions set forth in this Agreement and does not amend them within a period of ______________.
- At any given time by providing a written notice to the other party ______________ days prior to terminating the Agreement.
Dispute Resolution
– Any dispute or difference whatsoever arising out of or in connection with this Agreement shall be submitted to arbitration/mediation/negotiation (circle one) in accordance with, and subject to the laws of ______________.
Governing Law
– This Agreement shall be governed by and construed in accordance with the laws of ______________.
Severability
– In the event that any provision of this Agreement is found to be void and unenforceable by a court of competent jurisdiction, then the remaining provisions will remain in force in accordance with the Parties’ intention.
Entire Agreement
– This Agreement contains the entire agreement and understanding among the Parties hereto with respect to the subject matter hereof, and supersedes all prior agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.
Amendments
– The Parties agree that any amendments made to this Agreement must be in writing, where they must be signed by both Parties to this Agreement.
– Accordingly, any amendments made by the Parties will be applied to this Agreement.
Signature And Date
– The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated by their signatures below:
Subcontractor
Name: ______________________
Signature: ___________________
Date: _______________________
Contractor
Name: ______________________
Signature: ___________________
Date: _______________________
Related Proposals and Templates
Download our Subcontractor Agreement
You’re likely incredibly busy trying to coordinate multiple client projects. So we’ve done the hard work of developing a subcontractor agreement template to save you legal fees and time so you can quickly scale your operations and take on more jobs.
Click below to get a free copy of our subcontractor agreement doc
