Free template
Subcontractor Agreement Template
A 14-section standard-form subcontract as an editable Word document — scope, retainage, written change orders, lien waivers, and the payment terms that get subs paid on time.
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What the agreement covers
The two clauses that earn their keep: written change orders only (a verbal OK is not a change order) and G702-style progress billing with retainage — the billing rhythm this template shares with our free pay application template.
Frequently asked questions
What should a subcontractor agreement include?
At minimum: the scope of work with exclusions, the subcontract price, payment terms including retainage and a billing schedule, a written change-order requirement, the project schedule, insurance requirements, warranty terms, indemnification, lien waiver procedure, and how disputes are resolved. This template covers all fourteen standard sections with bracketed fill-ins.
Is a subcontractor agreement legally binding?
Yes — once both parties sign, it is an enforceable contract. That is exactly why the change-order and payment clauses matter: they make the paper trail, not memory, control what you are owed. Have an attorney review any agreement before you rely on it; retainage limits, prompt-payment rules, and lien waiver forms vary by state.
Who provides the agreement — the GC or the sub?
On commercial work the general contractor usually issues their subcontract form, and you negotiate from it. This template is for the other cases: direct-to-owner jobs, smaller GCs without paper, and your own sub-tier subcontractors. Reading a standard form also makes you a sharper negotiator of a GC-issued one.
What is the difference between a subcontractor agreement and a purchase order?
A purchase order buys materials or a narrow, fixed deliverable; a subcontractor agreement governs ongoing labor on a project — scope, schedule, progress billing, retainage, changes, insurance, and warranty. If your work is billed monthly against a schedule of values, you want a subcontract, not a PO.
Can I sign it electronically?
Yes — properly executed e-signatures are legally binding in the United States under the federal ESIGN Act. BuildWorkPro includes built-in legally-binding e-signatures: send a bid or change order and your customer signs from an emailed link, with the certified signed PDF filed back on the record automatically.
The contract is step one. Getting paid against it is the job.
BuildWorkPro runs the rest of the loop this agreement describes: bids with legally-binding e-signatures, written change orders your customer approves online, and G702-style pay applications with retainage handled.
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Not legal advice. This template is a general-purpose starting point; construction contract requirements — retainage limits, prompt-payment rules, lien waiver forms, indemnity restrictions — vary by state. Have a licensed attorney review before use.