Subcontractor Agreement Template for Canada

A Subcontractor Agreement sets up the legal relationship between a main contractor and another business hired to help complete part of a project. Think of it as the rulebook that guides how independent contractors can delegate work while staying compliant with Canadian employment standards and tax laws.

This contract spells out key details like payment terms, work quality standards, safety requirements, and insurance obligations. It protects both parties by clearly defining who's responsible for what, including liability coverage under provincial workplace safety boards. Smart businesses use these agreements to maintain quality control while sharing specialized work across their supply chains.

Use a Subcontractor Agreement any time you need to hire another business to handle part of your contracted work. This is especially important in construction, IT projects, and consulting services across Canada, where work often flows through multiple specialized providers.

The agreement becomes essential when dealing with complex projects requiring specific expertise, tight deadlines, or when provincial regulations demand clear documentation of workplace relationships. It's particularly crucial before letting subcontractors access sensitive information, work on your client's property, or represent your business to end customers. Having it in place before work begins prevents costly disputes and keeps you compliant with local labor laws.

• Simple Subcontractor Agreement: Basic version for straightforward projects with clear scope and minimal complexity
• Subcontractor Employment Contract: Detailed agreement for long-term relationships with independent contractors
• Subcontractor To Subcontractor Agreement: Specialized format for when one subcontractor needs to further delegate work
• Subcontractor Cleaning Contract: Industry-specific version with cleaning service terms, insurance, and safety protocols
• Cleaning Subcontractor Contract: Alternative cleaning industry template with enhanced liability and quality control provisions

• General Contractors: Businesses that win primary contracts and need to delegate portions of work while maintaining quality control and legal compliance
• Subcontractors: Specialized service providers or trades who perform specific parts of larger projects under the main contractor's supervision
• Project Managers: Oversee contract implementation, coordinate between parties, and ensure deliverables meet specifications
• Legal Counsel: Draft and review agreements to protect their clients' interests and ensure compliance with provincial labor laws
• Insurance Providers: Verify coverage requirements and liability provisions before issuing necessary policies

• Gather Business Details: Collect legal names, addresses, and business numbers for all parties involved
• Define Project Scope: Document specific services, deliverables, timelines, and quality standards expected
• Outline Payment Terms: Set rates, payment schedules, and conditions for additional charges or modifications
• Insurance Requirements: List required coverage types and minimum amounts based on provincial regulations
• Safety Protocols: Include workplace safety requirements and compliance with local health standards
• Review and Generate: Input gathered information into our platform to create a legally-sound agreement that meets Canadian requirements

• Party Identification: Full legal names, addresses, and business numbers of contractor and subcontractor
• Scope of Work: Detailed description of services, deliverables, and performance standards
• Payment Terms: Rates, payment schedule, invoicing requirements, and holdback provisions per provincial law
• Duration and Termination: Project timeline, renewal options, and conditions for ending the agreement
• Insurance and Liability: Required coverage, indemnification terms, and workplace safety compliance
• Confidentiality: Protection of sensitive information and intellectual property rights
• Dispute Resolution: Process for handling disagreements under Canadian jurisdiction

A Subcontractor Agreement differs significantly from a Construction Agreement in several key ways, though both are common in Canadian building projects. While a Construction Agreement establishes the relationship between a property owner and their primary contractor, a Subcontractor Agreement governs the delegation of specific tasks to specialized service providers.

• Contractual Chain: Construction Agreements are primary contracts with property owners, while Subcontractor Agreements are secondary arrangements between contractors and their hired specialists
• Scope Definition: Construction Agreements cover entire projects, while Subcontractor Agreements focus on specific components or trades
• Payment Structure: Construction Agreements typically involve direct client payments, while Subcontractor Agreements usually include markup provisions and progress-based compensation
• Liability Framework: Construction Agreements place full project responsibility on the main contractor, while Subcontractor Agreements distribute specific risks to specialized providers