When a construction project is underway, one major key player is a subcontractor. These individuals or companies carry out work for a contractor as part of the larger contracted project. In short, they are employed by contractors or project managers who are directly hired by the construction owners. Subcontracting is basically bringing in an outside company (third parties) or individual to perform specific parts of a contract or project. In most cases, a company subcontracts another business to perform a task that cannot be handled internally and this is most practiced in constructions projects of all kinds. An important document needed once a subcontractor is hired and chosen for a construction project is a construction subcontractor agreement. Why is this document important? Let us discuss this further below and if you need any help preparing a subcontractor agreement, check out our free construction subcontractor agreement samples that are downloadable on this page.

10+ Construction Subcontractor Agreement Samples

1. Construction Subcontractor Agreement Template

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2. Short Form Construction Subcontractor Agreement

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3. Residential Construction Subcontractor Agreement

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4. Subcontractor Construction Hold Harmless Agreement

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5. Standard Construction Subcontractor Agreement

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6. General Construction Subcontractor Agreement

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7. Subcontractor Construction Contract Agreement

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8. Standard Form Construction Subcontractor Agreement

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9. Sample Construction Subcontractor Agreement

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10. Construction Safety Subcontractor Agreement

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11. Master Construction Subcontractor Agreement

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What Is a Construction Subcontractor Agreement?

When subcontractors are hired to help complete a construction project, it is important to set the terms, responsibilities, payment, and scope of work needed by both parties by creating a construction subcontractor agreement. For contractors and project managers this will assure them that work will be carried out accurately and for subcontractors, this will clear expectations, give them the timeline they need to work on, and most importantly the payment process. It is important that subcontractors should read the subcontractor agreement and assure specifics to protect themselves from unfair risk. Also, this agreement can help subcontractors assert their rights and better their business in the process.

How To Write a Construction Subcontractor Agreement?

When we speak about construction subcontractors they could be carpenters, plumbers, or electricians. And depending on the complexity of the project and the scope of work that is needed from the subcontractor, a construction subcontractor agreement is never the same. That being said, let us look at the basic elements that constitute this kind of agreement.

I. Construction Project

Define the needs and goals of the construction project. This will later help characterize the scope of work of the subcontractor. Outline the portion of the project that falls under the subcontractor’s responsibility.

II. Scope Of Work

The scope of work is the reason why the subcontractor is hired to perform. To afford future misunderstandings make sure to carefully define the scope of work that is to be completed by the contractor.

III. Provisions

State the provisions such as the materials and equipment that are needed in the agreement and should be completed beforehand so both parties may have ample time to review and make necessary changes.

IV. Timeline

Include the construction timeline so the subcontractor is aware of the schedules and this can help keep your project on schedule.

V. Payment

Write down the payment and its terms. Depending on the payment schedule outlined, the subcontractor will be paid in full after the work has been completed to the approval of the independent contractor and the client.

VI. Defense & Indemnification

Another important section that must be included in the agreement is the defense and indemnification clause. The purpose of this clause is to shift responsibility for potential risks from one project participant to another.

VII. Disputes

It is vital to point out in the agreement remedies on how to handle disputes, which is sometimes inevitable when it comes to construction work. Disagreements or breaches of contracts can be settled through arbitration or mediation, for example. This gives both of you a clear path should a problem arise.

FAQs

Why Is a Subcontractor Agreement Important?

This will help provide the protection you need in case there are any problems arise in the future. An agreement can be used as a reference for what is initially agreed upon.

What Is an Independent Contractor?

These are individuals or entities that provide goods or services according to the terms of a contract they have negotiated with an employer.

What Is a Waiver of Subrogation?

This is clause is placed in a contract to minimize lawsuits and claims among the parties.

A construction subcontractor agreement is needed to ensure a healthy and productive relationship between contractors/project managers and their subcontractors. To make it easier for you to prepare don’t forget to check our free templates now!

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