How to Write a Subcontractor Agreement

When a general contractor hires a subcontractor, the agreement between them is what protects the GC from the sub's mistakes, delays, and liabilities. A weak (or missing) subcontractor agreement can leave the GC holding the bag. Here's what a solid one includes.

What a subcontractor agreement does

It defines the relationship between the general contractor and the sub: what work the sub is responsible for, how and when they're paid, and — critically — who's liable when something goes wrong. It also passes relevant obligations from the prime contract down to the sub.

Essential clauses

1. Scope of work. Exactly what the sub is responsible for.
2. Payment terms. Amount, schedule, and conditions. "Pay-when-paid" clauses are common but vary in enforceability by state.
3. Schedule. When the sub's work must be complete, and consequences for delay.
4. Insurance. Requiring the sub to carry their own liability and workers' comp coverage, and often to name the GC as additional insured.
5. Indemnification. The sub agrees to cover losses caused by their work — one of the most important protections for a GC.
6. Lien waivers. Requiring the sub to provide lien waivers upon payment, so they can't file a lien on the property after being paid.
7. Independent contractor status. Confirming the sub isn't an employee.
8. Compliance. Requiring the sub to follow safety rules and applicable codes.

The clauses that actually protect the GC

Three do the heavy lifting: insurance requirements (so the sub's accidents are covered by the sub's policy), indemnification (so the sub pays for problems they cause), and lien waivers (so a paid sub can't cloud the property title). Skipping these is where general contractors get exposed.

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SignedDocu's subcontractor agreement includes scope, payment, insurance, indemnification, and status clauses. Fill in the details and download a professional agreement.