Subcontractor agreement checklist

Short answer

A subcontractor agreement should define the scope precisely, state the price and payment terms including whether payment is contingent on owner payment, require certificates of insurance and licence verification, set the schedule and coordination obligations, require lien waivers with each payment, and cover indemnification, warranty, change order process and termination. This checklist covers what to include; the wording itself should be drafted or reviewed by an attorney.

Most subcontractor disputes come from something the agreement never addressed. This is a checklist of the clauses and documents that should be present before a sub starts work. It is a drafting aid, not a contract, and not legal advice.

What is in the template

Parties and project

  • Legal business names of both parties
  • Licence numbers and, where relevant, tax identification
  • Project name, address and prime contract reference
  • Effective date

Scope and standards

  • Detailed scope of work, with drawings and specifications referenced
  • Explicit exclusions
  • Who supplies materials, tools and equipment
  • Workmanship standards and applicable codes
  • Cleanup and disposal responsibility

Price, payment and lien protection

  • Contract price or rate basis
  • Payment schedule and invoicing requirements
  • Retainage, if any
  • Whether payment is contingent on owner payment (pay-if-paid vs pay-when-paid), which is treated differently by state
  • Conditional and unconditional lien waivers required with each payment

Insurance and compliance

  • General liability limits and certificate of insurance
  • Workers compensation coverage evidence
  • Auto liability where vehicles are used
  • Additional insured endorsement requirement
  • Licence and permit responsibilities
  • Worker classification and eligibility documentation

Schedule and coordination

  • Start date and completion date
  • Obligation to coordinate with other trades
  • Notice requirements for delays
  • Daily reporting or check-in expectations
  • Site rules, safety programme and PPE

Risk, changes and termination

  • Change order process and required approvals
  • Warranty period and callback obligations
  • Indemnification and limitation of liability
  • Dispute resolution and governing law
  • Termination for cause and for convenience
  • Signatures and dates for both parties

Spreadsheet columns

How to use it

  1. Use this to check a lawyer-drafted agreement covers everything, not as the agreement itself.
  2. Collect certificates of insurance before work starts and diary the expiry dates.
  3. Match the sub's scope language to your prime contract so nothing falls between the two.
  4. Require lien waivers with every payment, not just the final one.
  5. Confirm how your state treats pay-if-paid clauses before relying on one.

This is a checklist of topics to cover, not a contract and not legal advice. Subcontract enforceability, lien waiver forms, pay-if-paid clauses, indemnity limits and worker classification rules vary significantly by state. Have a construction attorney draft or review any agreement you actually use.

Frequently asked questions

What should a subcontractor agreement include?

Party and licence details, a precise scope with exclusions, price and payment terms, retainage, lien waiver requirements, insurance certificates with additional insured status, schedule and coordination duties, safety requirements, change order process, warranty, indemnification, dispute resolution and termination provisions.

Do I need a written agreement with every subcontractor?

It is strongly advisable regardless of job size, and some states require written agreements above certain thresholds. A written scope alone prevents the majority of common disputes, even on small jobs.

What insurance should I require from subcontractors?

At minimum general liability and workers compensation, evidenced by a certificate of insurance naming you as additional insured, plus auto liability where vehicles are involved. Verify coverage is current before each job, not just at onboarding.

Summary

A free subcontractor agreement checklist from WinkScope in PDF and CSV, no signup. It lists the provisions a construction subcontract should cover: parties and licences, detailed scope with exclusions, price and payment terms, retainage, pay-if-paid treatment, lien waiver requirements, general liability and workers compensation certificates with additional insured status, schedule and coordination, safety, change orders, warranty, indemnification, dispute resolution and termination. It is a drafting checklist, not legal advice.