Create Your Construction Subcontractor Agreement
Generate a professional subcontractor agreement for any construction project - new builds, renovations, or repairs. Covers scope of work, compensation, retainage, insurance requirements, mechanic's lien rights, and OSHA compliance in one legal document.
Trusted by thousands of general contractors and subcontractors
What's Included in This Document
This form generates a comprehensive construction subcontractor agreement covering the scope of work, compensation, insurance requirements, compliance obligations, and dispute resolution - all in a single legally binding document customized for your state.
Scope & Materials
Define exactly what work the subcontractor will perform, who provides materials, who pulls permits, and who handles cleanup. Clear scope prevents the disputes that plague construction projects.
Compensation & Retainage
Set the payment structure - fixed price, hourly rate, or unit price - with retainage percentage, payment schedule, and change order procedures. Includes prevailing wage acknowledgment for public works projects.
Insurance & Compliance
Require general liability, workers' comp, OSHA compliance, and certificate of insurance. The toggles let you customize exactly which coverages are mandatory for your project.
Legal Protections
Indemnification, mechanic's lien rights, termination clauses, and dispute resolution - the legal framework that protects both the GC and subcontractor throughout the project.
Retainage Is Standard
Most construction projects withhold 5-10% of each payment until the sub's work is fully complete. This is not a penalty - it is standard industry practice that protects the GC and ensures punch list items get finished.
Mechanic's Lien Rights
Subcontractors who are not paid have the right to file a mechanic's lien against the property in every state. The specific notice requirements and deadlines vary - this agreement references your state's lien laws to keep both parties informed.
Agreement Types & Payment Structures
Construction subcontractor agreements come in three pricing models. The right choice depends on how well-defined the scope is and how the project is being bid.
Fixed-Price (Lump Sum)
The subcontractor agrees to complete all work for a set price. Best for well-defined scopes. The sub assumes the risk of cost overruns but benefits if they finish under budget. Payment can be upon completion, monthly, or milestone-based.
Time & Materials
The sub bills actual hours at an agreed rate plus material costs with optional markup. Best for uncertain scopes. A not-to-exceed cap can limit the GC's exposure while giving the sub flexibility to handle unforeseen conditions.
Unit Price
A fixed price per unit of work - per square foot, per fixture, per linear foot. Best for repetitive work where quantities may vary. Final cost is based on actual installed quantities verified by the GC.
Change Orders
No matter the agreement type, scope changes happen. The document includes a change order process - either requiring written approval before work begins or allowing verbal authorization with written follow-up within 48 hours.
Protecting Both Parties
A well-drafted subcontractor agreement protects the general contractor from liability and delays while ensuring the subcontractor gets paid fairly for their work.
GC Protection
Indemnification, insurance requirements, and compliance clauses protect the GC from liability for the subcontractor's negligence, injuries on the job site, and defective work. Retainage ensures punch list items get completed.
Subcontractor Protection
Payment terms, prompt payment act references, and mechanic's lien rights protect the subcontractor's right to get paid. Change order procedures ensure additional work is documented and compensated.
Clear Documentation
Detailed scope, materials responsibility, and permit obligations prevent the he said, she said disputes that derail construction projects. Everything is in writing before work begins.
Compliance & Safety
OSHA compliance, workers' comp, and safety program requirements keep the job site safe and protect both parties from regulatory penalties. Background check provisions add security for sensitive project locations.
Construction Subcontractor Agreement
- Fixed-price, T&M, and unit price options
- Scope of work and materials responsibility
- All 50 states supported
- Retainage and payment terms included
- Insurance and OSHA compliance built in
- Instant PDF download
Did you know?
Did you know?
Construction disputes are the most litigated contract disputes in the United States. The single biggest cause? Poorly defined scope of work and payment terms. A written subcontractor agreement with clear scope, compensation, change order procedures, and insurance requirements prevents the vast majority of these disputes. In states like California, an unlicensed contractor cannot enforce a construction contract or file a mechanic's lien - making licensing and proper documentation essential for both parties.
Featured — Spotlight
Construction law varies by state - your agreement should too.
Contractor licensing requirements, mechanic's lien deadlines, prompt payment acts, and workers' compensation mandates all differ state by state. California requires CSLB licensing and pays subs within 7 days. Texas has no state-level GC license but strict lien notice requirements. Florida requires licensing for work over $500. This agreement automatically references your state's rules so both parties understand their rights and obligations.
What people are saying
Real contractors, real protection
Join thousands who formalized their subcontractor relationships with confidence
"I run a residential GC firm and used to handshake deals with my subs. After a payment dispute nearly cost me a project, I started using proper subcontractor agreements. This form covers everything - scope, retainage, insurance, even OSHA compliance. Should have done it years ago."
Mike R.
Phoenix, AZ
"As a framing subcontractor, I need to protect my right to get paid. This agreement has clear payment terms, change order procedures, and references Texas mechanic's lien law. It took 10 minutes and gives me real legal protection on every job."
Carlos D.
Houston, TX
"I manage a commercial GC operation and we subcontract 80% of our work. Having a standardized subcontractor agreement with proper insurance requirements and indemnification language is non-negotiable. This form handles all of it cleanly."
Jennifer L.
Orlando, FL
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Frequently Asked Questions
Everything you need to know about our construction subcontractor agreement
A construction subcontractor agreement is a legal contract between a general contractor (GC) and a subcontractor that defines the scope of work, compensation, payment terms, insurance requirements, and other obligations for a specific construction project. It is separate from the prime contract between the GC and the property owner.
Yes. This subcontractor agreement is designed to comply with construction law in all 50 states. The form automatically references your state's contractor licensing requirements, mechanic's lien laws, and prompt payment acts based on the state you select during creation.
A general contractor is hired directly by the property owner under a prime contract to manage the overall construction project. A subcontractor is hired by the GC to perform specific trade work on that project. The subcontractor has no direct contract with the property owner - their agreement is with the GC.
Retainage is a percentage, typically 5-10%, of each payment that the GC withholds until the subcontractor's work is fully completed and accepted. It is standard practice in construction but not legally required in all states. Some states cap the retainage percentage or require its release within a specific timeframe after final completion.
This form generates a comprehensive, legally structured subcontractor agreement that covers standard provisions. However, for large or complex projects, government contracts, or situations involving unusual risk, we recommend having an attorney review the document before both parties sign.
Instant PDF download · Updated for 2026
Instant PDF download · Updated for 2026