Subcontractor Agreement Template
A general contractor's risk lives in the subcontractor's work — and in every clause that is not written down. A subcontractor agreement template locks the scope, insurance, and lien waivers before the first day on site.
Customize & DownloadSubcontractor Agreement Template Sample
This Subcontractor Agreement is entered into as of [1. Effective Date] by and between [2. General Contractor Full Name] (the “Contractor”) and [3. Subcontractor Full Name] (the “Subcontractor”) for the project described as [4. Project Description] located at [5. Project Location].
1. Scope of Work.
The Subcontractor shall perform the work described in [6. Scope of Work], in accordance with the project specifications and the schedule set out in [7. Work Schedule]. The Subcontractor shall provide all labor, materials, equipment, and supervision necessary to complete the work.
2. Subcontract Sum.
The Contractor shall pay the Subcontractor the fixed sum of [8. Subcontract Sum] for the complete performance of the work, payable [9. Payment Schedule]. Progress payments shall be made upon the Contractor’s receipt of payment from the project owner, subject to the Subcontractor’s submission of accurate invoices and required lien waivers.
3. Flow-Down Provisions.
The Subcontractor shall be bound by, and shall comply with, all terms and conditions of the prime contract between the Contractor and the project owner, to the extent they apply to the Subcontractor’s scope of work. The Contractor shall make a copy of the relevant provisions available to the Subcontractor upon request.
4. Insurance.
The Subcontractor shall maintain, at its own expense, workers’ compensation insurance, commercial general liability insurance with limits of at least [9. Liability Limits], and automobile liability insurance as required by law. Certificates of insurance shall be delivered to the Contractor before work begins and upon renewal.
5. Indemnification.
The Subcontractor shall indemnify and hold harmless the Contractor from and against all claims, damages, losses, and expenses arising out of the Subcontractor’s performance of the work, including claims for bodily injury, property damage, and violations of law, to the extent caused by the Subcontractor’s negligence or breach of this Agreement.
6. Independent Contractor Status.
The Subcontractor is an independent contractor and not an employee of the Contractor. The Subcontractor is solely responsible for the payment of all taxes, insurance premiums, and benefits for itself and its employees, and for compliance with all applicable labor and employment laws.
7. Lien Waivers.
The Subcontractor shall execute and deliver lien waivers, in the form required by the project owner, before each progress payment and before final payment.
8. Termination.
The Contractor may terminate this Agreement for cause upon written notice if the Subcontractor fails to perform the work in accordance with the schedule or specifications. The Contractor may terminate for convenience upon [10. Termination Notice Days] days’ written notice, and the Subcontractor shall be paid for work performed to the date of termination.
9. Governing Law.
This Agreement is governed by the laws of the State of [11. State].
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What's Included
6 provisionsThis template is provided for informational purposes only and is not legal advice. Construction and subcontractor laws vary by state; consult legal counsel before use.
How to Use
Draft the subcontract
The agreement follows 2026 construction subcontracting practice, with risk clauses included.
Enter the project terms
Add the contractor, subcontractor, scope, sum, schedule, insurance limits, and state law.
Finalize the contract
Preview the agreement and export it as Word or PDF for both parties to keep.
Frequently Asked Questions
What is a flow-down clause in a subcontract?
It binds the subcontractor to the terms of the prime contract between the general contractor and owner — such as safety rules, quality standards, and deadlines — to the extent they affect the subcontractor's work.
Why do subcontractors need lien waivers?
A lien waiver confirms the subcontractor has been paid for work done, protecting the owner and contractor from mechanic's liens. Waivers are usually required before each payment.
Who is liable if a subcontractor's worker is injured?
The subcontractor's workers' compensation covers the injury, and the subcontractor indemnifies the contractor for related claims. This is why insurance requirements and certificates matter.
Are subcontractors employees of the general contractor?
No. Subcontractors are independent contractors responsible for their own taxes and benefits. Misclassifying a worker as a subcontractor when they are really an employee carries legal risk.
