Subcontractor Agreement Free Template
A Subcontractor Agreement is a formal contract between a contractor and a subcontractor, outlining the scope of services, payment terms, responsibilities, and legal obligations for a specific project. This agreement ensures that the subcontractor’s work aligns with the contractor’s standards and the requirements of the client. Our template is fully customizable to fit different industries and project types, providing clarity and protection for both parties involved.
1. Parties Involved
This section includes the names and addresses of both the Contractor and the Subcontractor, establishing the legal relationship between them.
- Contractor’s Information: Name and mailing address.
- Subcontractor’s Information: Name and mailing address.
2. Client Details
Acknowledges the Client for whom the services are being provided and states that the subcontractor’s work must meet the standards set in the main contract (Prime Contract) between the contractor and the client.
3. Services Provided
Defines the scope of work the subcontractor will perform. This may include labor, materials, equipment, and other responsibilities specific to the project.
4. Location and Commencement
Specifies the Location where the services will be performed and the Commencement Date when the subcontractor can begin work.
5. Completion and Payment Terms
Outlines:
- Completion Deadline: Either a specific date or based on industry standards.
- Payment: The agreed amount or hourly rate, including conditions for any potential claims related to delays or extra work.
- Payment Method: How and when the payment will be made, such as upon completion or in periodic installments (e.g., weekly, monthly).
6. Subcontracting and Assignment
Defines whether the subcontractor has the right to further subcontract part of the work or assign rights under the agreement.
7. Insurance Requirements
Specifies the insurance obligations of the subcontractor, which may include:
- General Liability Insurance
- Vehicle Liability Insurance
- Excess Liability Insurance
- Requirements for naming the contractor and client as additional insureds.
8. Dispute Resolution
Details how disputes will be resolved, such as:
- Binding or Non-Binding Arbitration
- Mediation followed by either arbitration or litigation if necessary.
9. Termination Rights
Defines the termination conditions for the agreement, whether initiated by the contractor, subcontractor, or both parties.
10. Confidentiality and Non-Disclosure
Ensures that any proprietary or confidential information shared during the project is protected from disclosure by the subcontractor.
11. Indemnification and Warranty
The subcontractor agrees to indemnify the contractor and client for any claims arising from their work. It also outlines the warranties related to materials, workmanship, and compliance with industry standards.
12. Change Orders
Any changes to the scope of services or specifications must be documented through Change Orders, which are agreed upon by both parties.
13. Entire Agreement
This section confirms that the Subcontractor Agreement constitutes the entire understanding between the contractor and subcontractor, superseding any prior agreements.