Subcontractor agreement template: free in Word, or sign it online

What the template includes

• Contractor and subcontractor, with licenses
• The prime contract and the client
• Scope of the subcontract work
• Flow-down of the prime contract terms
• Price, invoicing, payment timing and retention
• Schedule and coordination
• Change orders and claims
• Insurance, additional insureds and indemnity
• Safety and compliance
• Warranty matched to the prime contract
• Termination for default
• Independent contractor status and governing law

What you fill in

How it gets signed

1. 1Choose «Use this template», fill in the fields and review the full subcontractor agreement.
2. 2Send it by WhatsApp or email. The other party opens the link on their phone without an account.
3. 3They tap the brown bar at the bottom that says «Sign as …» and draw their signature once.
4. 4Everyone gets the signed PDF with its signature certificate. Anyone can check it at signsolu.com/verificar.

The signing screen tells each signer that signing means agreeing to sign electronically. It links to the electronic signature disclosure that the ESIGN Act asks for.

What you get once everyone signs

• The signed PDF. The final subcontractor agreement with every drawn signature in place.
• The signature certificate. It lists each signer and the date and time of each signature.
• A record you can check. The folio on the certificate opens the document history at signsolu.com/verificar.
• Reminders. Turn them on and SignSolú reminds every signer who has not signed yet.

Your first ten documents are free and need no card.

What the law says

Subcontracts follow state contract law, plus state rules on contractor licensing and payment. Many states set deadlines for paying subcontractors once the contractor is paid.

Pay-when-paid and pay-if-paid clauses are treated differently by state. Some states do not enforce pay-if-paid at all. Clause 4 uses a timing clause, which is the safer choice.

Broad indemnity clauses are limited in many states. Clause 7 applies «to the extent allowed by law» for that reason.

The ESIGN Act, 15 U.S.C. 7001 gives an electronic signature the same legal effect as one on paper. A contract cannot be denied effect only because it was signed electronically.

Why the flow-down clause matters

The general contractor promises the client a lot. Schedules, quality standards, insurance and warranties all come from the prime contract.

Clause 3 passes those promises down to the subcontractor for its part of the work. Without it, the contractor carries risks it cannot control.

Give the subcontractor the relevant pages of the prime contract. A flow-down clause works best when the sub has read what it agrees to.

Payment terms that keep jobs moving

Monthly invoices for work done keep cash flowing on long jobs. Lump sums at the end strain small subs.

Retention protects the contractor until the work is complete. Release it when the subcontractor's scope is accepted, not at the end of the whole project.

Swap a lien waiver for each payment. The contractor's lender and client will ask for them.

Common mistakes

Scope gaps. Two trades each think the other installs the same item. Use drawing numbers to define scope.

Expired insurance. Certificates lapse during long projects. Ask for renewals before the expiry date.

Verbal changes. A superintendent's «go ahead» rarely gets paid. Get a signed change order first.

Treating subs as employees. Directing how and when each worker works can create employment claims.

Signing from the job site

Subcontractors spend their days on site, not at a desk. Paper contracts wait in a truck for a week.

Send the subcontract, change orders and lien waivers as links. The subcontractor signs each one from the phone between tasks.

Each signed document keeps its certificate with the date and time. Project managers can prove when a change was approved.

Checking a subcontractor before signing

1. 1Look up the license on the state licensing board website.
2. 2Get insurance certificates sent directly by the insurance agent.
3. 3Ask for two references from recent jobs of similar size.
4. 4Collect a W-9 so payments can be reported at year end.

Save these documents with the signed subcontract. Auditors and insurers ask for them after the job, not before. A complete file also speeds up the next bid with the same sub.

Before you sign

• Read every clause of the subcontractor agreement with the other party before anyone signs. Change what does not fit your deal.
• Check how electronic signatures are recognized where you sign in the e-signature validity guide by country.
• Learn how anyone can confirm a signed document at signsolu.com/verificar.
• Some offices only take their own PDF form. Fill out a PDF form online for free, with nothing uploaded.

Other templates

• Construction contract
• Lien waiver
• Freelance contract
• Handyman contract
• Joint venture agreement