Subcontractor Agreement Template

This Subcontractor Agreement is made on [Contract Date] between [Company Name] ("Contractor"), the general contractor, and [Client Name] ("Subcontractor").

1. The Work

Subcontractor will perform the [trade, for example: electrical] work described in its proposal dated [date of the proposal, for example: April 9, 2026] and shown in the project plans, both part of this agreement, for [the project, for example: the kitchen remodel at 14 Elm Street] (the "Project"). Subcontractor provides all labor, materials, tools, and equipment for its work unless the proposal says otherwise.

2. Price and Schedule of Values

The subcontract price is $5,200, billed by this schedule of values:

• Rough-in, inspected and passed: $2,600
• Trim-out, fixtures, and devices installed: $2,080
• Final inspection and closeout: $520

3. Payment

• Subcontractor will submit a payment request for work completed under the schedule of values, with a conditional lien waiver for the amount requested.
• Contractor will pay each approved request within 7 days of being paid by the owner for that work, and in any case within 30 days of approving the request. Contractor's obligation to pay doesn't depend on the owner paying Contractor.
• Contractor may hold [10]% of each payment as retainage, released within 30 days of final completion and acceptance of Subcontractor's work.
• After each payment, Subcontractor will provide an unconditional lien waiver for the amount received. Lien waivers will be in the form the Project's state requires, or in a form Contractor provides where the state has none.
• Subcontractor will pay its own workers, suppliers, and sub-subcontractors promptly.

4. Insurance

Before starting work, Subcontractor will give Contractor certificates of insurance showing general liability coverage of at least $1,000,000 per occurrence and $2,000,000 in total, commercial auto coverage, and workers' compensation as the law requires. Subcontractor will name Contractor as an additional insured on its general liability policy, and keep this coverage in force until its work is complete.

5. Licenses, Permits, and Codes

Subcontractor will hold the licenses its trade requires, obtain any trade permits the work needs, and perform its work to the codes that apply and to pass inspection.

6. Safety

Subcontractor is responsible for the safety of its own workers and work, will follow the safety rules that apply and Contractor's site rules, and will report any accident or hazard to Contractor right away.

7. Schedule and Coordination

Subcontractor will perform its work on the schedule Contractor sets, coordinate with other trades on site, and attend coordination meetings when asked. Subcontractor will tell Contractor promptly of anything that may delay its work.

8. Cleanup

Subcontractor will keep its work area clean each day and remove its own debris and leftover materials.

9. Change Orders

Subcontractor won't perform extra or changed work without a written change order signed by Contractor that states the change, its price, and its effect on the schedule.

10. Warranty

Subcontractor warrants its work against defects in materials and workmanship for one year from completion of the Project, and will correct any defect promptly at no charge.

11. Indemnity

Each party will defend and indemnify the other against claims for injury or property damage to the extent caused by its own negligence, or that of its employees or subcontractors.

12. Independent Contractor

Subcontractor is an independent contractor. It controls how its work is done and is responsible for its own workers, taxes, and benefits.

13. Termination

• For cause. If Subcontractor fails to perform its work as this agreement requires and doesn't fix the failure within 3 working days of written notice, Contractor may end this agreement and have the work finished by others, with the reasonable added cost deducted from what's owed to Subcontractor.
• For convenience. Contractor may end this agreement at any time with written notice, and will pay Subcontractor for work done and materials delivered to that date.

14. General

This agreement is governed by the laws of [state, for example: Oregon]. It, Subcontractor's proposal, and the project plans are the entire agreement between the parties, and may only be changed in writing. Subcontractor may not assign it or subcontract its work without Contractor's written consent. If any part is found unenforceable, the rest remains in effect.

By signing below, both parties agree to these terms.