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Subcontractor Agreement Template

One-page subcontractor agreement covering scope, payment terms, insurance minimums, lien waivers, indemnification, and termination. Florida-style governing law. Download as PDF.

When to use this

Use this agreement any time you hire a subcontractor for a defined scope on a single job. It works for trade subs like plasterers, tile setters, decking installers, electricians, and plumbers. It also works for one-off specialty work like screen enclosure crews, dive teams, or excavation outfits.

Sign it before the sub shows up to work. The big risk on small construction jobs is verbal scope, no insurance verification, and no payment terms in writing. When something goes wrong, which it will, you have nothing to point at. This agreement closes that gap on a single page.

If you are running the same sub on multiple jobs per year, sign a master agreement once and attach a one-page work order for each job. If you are a sub yourself, this is the document you want your GC to sign with you so the terms cut both ways.

What's included

Template preview

Subcontractor Agreement

This Subcontractor Agreement ("Agreement") is entered into on [DATE] by and between [CONTRACTOR NAME], with a principal address at [Contractor address] ("Contractor"), and [SUBCONTRACTOR NAME], with a principal address at [Sub address] ("Subcontractor").

1. Project and Scope

Subcontractor shall furnish all labor, materials, equipment, and supervision necessary to complete the following scope of work at the project located at [PROJECT ADDRESS]: [Detailed scope description]. The work shall begin on or about [Start date] and shall be substantially complete by [Completion date].

2. Compensation and Payment Terms

Contractor shall pay Subcontractor a total of $[AMOUNT] for the scope above. Payment shall be made on a [net 10 / net 15 / net 30] basis following Contractor's approval of Subcontractor's invoice. Progress payments shall be made based on percentage of work completed and verified by Contractor.

3. Insurance Requirements

Subcontractor shall maintain at its own cost: (a) Commercial General Liability with limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; (b) Workers Compensation as required by Florida law for any employees; (c) Automobile Liability with a combined single limit of $1,000,000 if Subcontractor operates vehicles in connection with the work. Subcontractor shall provide certificates of insurance naming Contractor as additional insured prior to commencing work.

4. Right to Stop Work

If Subcontractor's certificate of insurance is missing, expired, or non-conforming at any time during the work, Contractor may suspend Subcontractor's work without liability until a compliant certificate is delivered.

5. Indemnification

Subcontractor shall indemnify and hold harmless Contractor, the project owner, and their respective agents from any claims, damages, losses, or expenses arising out of Subcontractor's performance of the work or the negligent acts of Subcontractor or its employees.

6. Change Orders

No extra work or change in scope shall be performed without a written change order signed by Contractor. Verbal authorization shall not constitute approval of additional compensation.

7. Lien Waivers

Subcontractor shall deliver a conditional or unconditional lien waiver, as appropriate, in the form prescribed by Fla. Stat. 713.20, in connection with each progress and final payment. Failure to deliver a compliant waiver shall be grounds for withholding payment.

8. Termination

Contractor may terminate this Agreement for cause upon Subcontractor's material breach if Subcontractor fails to cure within five (5) days of written notice. Contractor may terminate for convenience upon ten (10) days written notice, in which case Subcontractor shall be paid for work properly performed through the date of termination.

9. Governing Law and Venue

This Agreement shall be governed by the laws of the State of Florida. Venue for any dispute shall lie in the county where the project is located.

Contractor
[Name, Title]
Date: ________________
Subcontractor
[Name, Title]
Date: ________________

How to customize

Before you send it, swap the bracketed placeholders with real info. The big ones are the date, both party names, both addresses, the project address, the scope description, the dollar amount, and the payment timing (net 10, 15, or 30). Be specific in the scope section. "Install pool deck" is too vague. "Furnish and install 1,800 SF travertine deck pavers per attached plan, including base prep, sand setting bed, and edge restraints" is what holds up if there is a dispute later.

Insurance limits can move based on the job. The $1M GL minimum is the lowest you should ever take. On commercial work or jobs with significant fall risk, owners frequently require $2M per occurrence and $5M umbrella. If the owner has insurance requirements flowing down from their lender, copy those numbers into Section 3 exactly.

The termination clause uses a 5-day cure period and a 10-day convenience window. Those are short. For longer-relationship subs, you might extend the cure to 10 or 14 days. Do not extend the convenience notice past 30 days or you defeat the purpose.

Add an exhibit at the end for the detailed scope, schedule of values, or material specifications. Reference it in Section 1. Initial each page of the exhibit so there is no question about which version is attached.

Common mistakes

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Frequently asked questions

Is this subcontractor agreement template legally binding?
Once both parties sign it, yes. The template uses standard contract language for scope, payment, insurance, indemnification, and termination. For high-dollar work or unusual scope, run it past your construction attorney. Workhand is not a law firm.
What insurance minimums should I require from a subcontractor?
At minimum: $1M general liability per occurrence, $2M aggregate, workers comp for any sub with employees, and $1M auto liability if they drive to the job. The template defaults to these numbers because they match what most GCs and owners require downstream. Bigger jobs or commercial work often require higher limits.
What does net 10/15/30 mean in a subcontractor agreement?
Net 10, 15, or 30 is the number of days you have to pay the sub after their invoice is approved. Net 10 is aggressive and helps you keep good subs. Net 30 protects your cash but burns goodwill. Most small GCs in Florida run net 15. Pick one number and put it in the agreement so there is no confusion later.
Do I need a separate lien waiver if the agreement already requires them?
Yes. The agreement requires the sub to deliver a waiver before each payment, but you still need to collect the actual signed waiver document each time. Florida requires statutory wording under Fla. Stat. 713.20. Use the Workhand lien waiver generator to produce a compliant one in 30 seconds.
Can I use this template outside Florida?
The general structure works in any state. The governing law and lien sections reference Florida statutes, so swap those out if you are working elsewhere. Insurance minimums and the right-to-stop-work clause are jurisdiction-neutral.
How is this different from a master services agreement?
An MSA is a long-term framework you sign once with a sub, then attach individual work orders for each job. This template is a single-job agreement. If you use the same sub on multiple jobs per year, an MSA plus per-job scope sheets is cleaner. The Pro tier of Workhand handles both flows.