Nominated Subcontractor Agreement Template for the United States

A Nominated Subcontractor Agreement is a specialized construction contract that allows you to maintain control over subcontractor selection while preserving the main contractor's overall project responsibility. Unlike traditional subcontracting arrangements, this agreement involves three primary parties: you as the employer/client, the main contractor, and your chosen nominated subcontractor. This arrangement provides you with direct input into critical aspects of your project while maintaining established contractual chains of responsibility.

When do you need this document?

You need a Nominated Subcontractor Agreement when your project requires specialized expertise that only specific contractors can provide. This commonly occurs with complex mechanical systems, specialized architectural elements, or proprietary building technologies where you want to ensure quality by selecting the subcontractor directly. The agreement is also essential when you have established relationships with trusted specialized contractors and want to continue working with them while engaging a different main contractor. Additionally, you may require this arrangement when project specifications demand specific certifications, security clearances, or technical qualifications that limit your subcontractor options.

Key legal considerations

Your agreement must clearly define the relationship between all three parties to avoid liability gaps and payment disputes. Pay special attention to insurance requirements, as both the main contractor and nominated subcontractor need appropriate coverage that protects your interests. The contract should establish clear performance standards, quality control procedures, and remediation processes for defective work. Include specific provisions for coordination between contractors to prevent scheduling conflicts and ensure seamless project execution. Payment terms require careful structuring to protect against non-payment risks while maintaining cash flow for all parties. Consider including dispute resolution mechanisms that account for the complex three-party relationship inherent in nominated subcontractor arrangements.

Legal requirements in the United States

Your Nominated Subcontractor Agreement must comply with federal construction regulations that vary based on project type and funding source. For federal projects, ensure compliance with the Miller Act requirements for payment and performance bonds, which protect subcontractors and suppliers from non-payment. The Davis-Bacon Act mandates prevailing wage payments on federally funded construction projects, requiring specific wage determination clauses in your agreement. OSHA compliance provisions are mandatory, establishing workplace safety standards that both contractors must meet. State contractor licensing laws require verification that all parties hold appropriate licenses for the work scope and project location. Additionally, your agreement should address Fair Labor Standards Act requirements for overtime pay and working hours, particularly on projects with tight deadlines or extended work schedules.