Subcontractor Agreement Template

1. Enter your company and customer details. Fill in your company name, license number, and contact info. Then add the customer's name, address, and contact information. The agreement number auto-generates but you can customize it to match your numbering system.

2. Add the covered scope. Define the work the subcontractor will perform. Include the trade, project details, specifications, and timeline. Click "Add Another System" for projects requiring multiple subcontractors or trades. Clear scope definitions prevent disputes later.

3. Select and customize a payment tier. Choose Basic, Standard, or Premium payment structures. Each tier comes pre-loaded with industry-standard terms and milestone schedules. Adjust the rate, payment schedule, retainage percentage, and included terms to match your project requirements.

4. Generate and print. Click Generate to create a professional, printable service agreement. It includes all the details you entered, the selected coverage tier, payment terms, cancellation policy, and signature lines for both parties.

Subcontractor agreements transform a General Contracting business from one relying on handshake deals into one with clear legal protections on every project. Instead of hoping subs deliver on verbal promises, written agreements define exactly what work is included, when it will be completed, and how much it will cost.

Liability protection is critical. A subcontractor without proper insurance and licensing exposes your GC business to enormous risk. Written agreements require proof of general liability, workers comp, and proper licensing before any work begins. If something goes wrong on site, the agreement defines who is responsible.

Agreements prevent scope disputes. The number one cause of conflict between GCs and subs is unclear scope. A detailed subcontractor agreement spells out exactly what is included and what is excluded. When the sub says "that wasn't in my bid," the agreement settles it immediately. Clear scope also makes change orders easier to manage because both parties know the baseline.

Every project is also a relationship-building opportunity. Reliable subcontractors are the backbone of a successful GC operation. Professional agreements with fair payment terms, clear expectations, and dispute resolution procedures build trust and loyalty with your best subs, ensuring they prioritize your projects over competitors.

Starting a new project with a subcontractor. Before any sub sets foot on your job site, have a signed agreement in place. Use this template to define the scope, set payment milestones, require insurance certificates, and establish clear expectations. The profitability calculator helps you verify the sub's pricing leaves enough margin for your overhead and profit.

Onboarding a new trade partner. When you find a reliable plumber, electrician, or framing crew, lock in the relationship with a professional agreement. Define your standard terms, payment schedule, and quality expectations upfront. This is the moment to set the tone for a long-term working relationship.

Scaling your subcontractor network. As your business grows, you need consistent agreements across all trades. Use the tier system to create different payment structures for different project sizes. Standardized agreements make it faster to onboard new subs and ensure every trade partner operates under the same terms.