Subcontractor Agreement Template | Awesome Sign

Subcontractor Agreement Template

A subcontractor agreement is a legal document that a general contractor uses to employ a subcontractor on a building project. This contract is a legally binding agreement that describes the parameters of a minor task inside the larger project that will be done by an entity other than the general contractor. Subcontractor agreements are often entered into between the contractor and another firm, with no involvement from the customer.

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What is the definition of a subcontractor agreement?

A subcontractor is a person or company who undertakes work for a contractor as part of a bigger project. Contractor subcontractor agreements are most popular in the construction industry, where specialised abilities are rented out to accomplish large construction projects.

A hired project manager, for example, may employ a bricklaying business to construct a new school in a new suburban development. A subcontractor agreement is thus a legal document between a contractor and a subcontractor that lays out the terms and conditions of the work to be completed.

What is the significance of a subcontractor agreement?

When a contractor employs a contractor, who then contracts another subcontractor to conduct work as part of a huge project, it may get quite complex. The danger here is that information will be misread, money will be missing, and work will not be finished on schedule. All of these scenarios have the potential to severely ruin a project. A subcontractor agreement ensures that all parties involved keep operations tight, focused, and consistent.

When should a contractor subcontractor agreement be used?

Depending on the size and scope of your company and projects, you may need to employ subcontractor agreements on a regular basis. A subcontractor agreement will be required each time you need to outsource services to finish a task. As a contractor or project manager, you most certainly have a solid sense of the gaps that need to be filled to complete a project. Even before taking on a new customer, you should go out to your network to get subcontractors to ensure the job is completed on time.

A subcontractor agreement will also be required if your present subcontractors are no longer able to execute their duties and must be replaced.

Finally, if extra time is needed to finish the task, you may need to employ subcontractor agreements to prolong contracts.

What is the job's scope?

A qualified project manager understands the project's goal while also keeping an eye on all of the moving components that make the project a reality. Every subcontractor agreement must be tailored to the services that are requested. When there is too much information, the job of the subcontractor becomes muddled. There is insufficient information, and it is unclear what each subcontractor is expected to do. The key to a high-quality subcontractor service agreement is that it articulates the scope of work required from the subcontractor precisely.

When and how will you pay your subcontractors?

If you're a busy contractor, you'll almost certainly use the same subcontractors again and again. Your connections are one of your most valuable assets, allowing you to charge your clients extra for access to your database of trustworthy professionals.

That is why it is crucial to develop these connections and guarantee that they are paid regularly and within a fair time frame. Nothing will wreak havoc on your relationships more than failing to pay your subcontractors.

When creating a subcontractor agreement, be specific about what you're willing to pay and when. Will you, for example, pay a percentage upfront and a percentage upon completion? Or will you pay in instalments? Whatever way you pick, make it very clear in your agreement and keep your commitments.

How will you manage indemnity?

When it comes to subcontractor agreements, indemnity may be a difficult issue to navigate. We're talking about who is ultimately accountable for any carelessness or legal claims when things go wrong. Who is in charge of that? It is entirely up to you how you handle indemnification in your subcontractor agreement. However, we recommend that you hold your subcontractors accountable for any third-party claims concerning their performance.

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Sub Contractor Agreement

You are entering into a contractor agreement on

_____________________________________.(enter due date) along with and between _____________________________________.(enter subcontractor's name) situated at _____________________________________.(enter location) and the _____________________________________.( customer's name) situated at _____________________________________.(enter location)

WHEREAS, the subcontractor requires assistance with the contractor; and

As a result, the contractor is qualified to provide such subcontractors;


  1. Subcontractors. The contractor is engaged by the subcontractor to provide the following subcontractors (the "subcontractors"): _____________________________________.



  1. Fees. For the contractor's provision of the subcontractors, the subcontractor agrees to pay the contractor the following fee. Payment must be made according to the schedule outlined below.

subcontractor cost: . Agreement fulfillment cost:. End of subcontractor cost:_____________________________________.

  1. Cost and delivery of cost: The customer may incur costs that are not covered by the subcontractor'’s price. The customer will keep a detailed record of all expenses incurred in the course of providing the contractors. Every ________. days/upon completion of the contractors, the customer will provide an invoice to the contractor for these expenses, along with receipts.

Any purchase exceeding ______.$ shall require written permission done by the subcontractor.

Within ______. days the invoice should be paid. Either directly or by electronic payment method.





  • Agreement term is effective from_______(enter date)

  • Either Party may terminate this Agreement at any time by giving the other party written notice. Except in the case of Contractor's breach of this Agreement, where Contractor fails to cure such breach upon fair notice, the subcontractor will be responsible for payment of all subcontractors performed up to the date of termination.

  • Confidentiality. In order for the contractor to complete the subcontractors, the subcontractor may be required to share proprietary information with the contractor, such as trade secrets, industry expertise, and other private information, during the course of this Agreement. At no time will the contractor divulge any of this confidential information. At no time will the contractor use any of this private information for his or her own personal gain. Even if the Agreement is terminated by natural termination or early termination by either Party, this clause remains in full force and effect.

  • No Exclusivity: The Parties recognise that this Agreement is not exclusive. The parties agree that they are free to enter into future agreements of this nature with other parties.

  • Contractors who work on their own. The contractor is offering the subcontractors under this Agreement as an Independent Contractor, not as an employee, according to the Parties. The subcontractor and the contractor do not form a partnership, joint venture, or any other fiduciary relationship as a result of this Agreement.

  • Rights of Ownership: During the length of this Agreement and for the purposes of the Project, the subcontractor retains ownership of any proprietary information it supplies with the contractor. This confidential information belongs to the contractor, who has no rights to it and may only use it to execute the subcontractors. The subcontractor will own the final subcontractor subcontractors once the Agreement is completed. While the contractor will personalise the subcontractor's subcontractor materials according to the subcontractor's preferences, the subcontractor understands that subcontractor materials have a common structure and foundation. Any and all template designs generated by the contractor previous to this Agreement remain its property.

  • Unless the Parties agree otherwise in writing, neither Party can waive any provision of this Agreement, or any rights or duties under it. Any provision, right, or obligation that is waived must be agreed upon in writing.

o Law of your choice. The Parties agree that the State and/or Country in which the tasks of this employment agreement are expected to take place will govern this Agreement. This

Agreement shall be governed by ________(enter a state of legislation) legislation if the duties of this Agreement are to be performed in several States and/or Countries.

  • Limitation of Liability: None of the parties shall be liable to any other parties or any 3rd party for causing damages coming from any part of the agreement. It includes, but is not limited to, any loss of revenue or predicted/anticipated profit or lost business. It also includes any cost of delay or failure of delivery, which is not related to or have any direct result of one party.

  • In the event of a disagreement, the parties agree to try to resolve it through good faith negotiations.

  • If a dispute cannot be resolved via good faith negotiations, either Party may seek mediation or binding arbitration in a forum mutually agreed upon by the parties.

  • The successful party will be entitled to its legal fees, including but not limited to attorneys' fees, in the case of arbitration and/or mediation.

  • The Complete Agreement. The Parties acknowledge and agree that this Agreement contains the entirety of their agreement. If the Parties wish to update, add, or otherwise modify any terms, they must do it in writing and both parties must sign it.

  • If any term of this Agreement is found to be invalid or unenforceable in whole or in part, that provision will be severed from the rest of the Agreement, and the remaining sections will remain in full force and effect as valid and enforceable.

  • All notices under this Agreement must be sent either certified or registered mail with return receipt requested, or by e-mail with return receipt requested.

All the concerned notice shall be sent by the following way

Sign the document