Subcontractor Agreement Template for India

A Subcontractor Agreement creates a legal relationship between a primary contractor and another business or individual who will help complete specific parts of a larger project. In India, these contracts are especially common in construction, IT services, and manufacturing, where specialized work often needs to be delegated.

The agreement spells out key details like payment terms, work quality standards, and project timelines while following Indian Contract Act requirements. It protects both parties by clearly defining who handles what tasks, setting confidentiality rules, and outlining liability limits. Many Indian businesses use these agreements to maintain quality control while scaling their operations through trusted partners.

Use a Subcontractor Agreement when you're bringing in outside help to complete parts of a larger project you've committed to deliver. This is essential for construction companies hiring specialized teams, IT firms outsourcing development work, or manufacturers delegating component production in India.

The agreement becomes crucial before any work begins, especially when dealing with confidential information, strict project deadlines, or quality requirements under Indian contract law. It helps prevent disputes by clearly documenting payment schedules, work specifications, and liability terms. Many businesses create these agreements when scaling operations or taking on projects that require expertise beyond their core team.

• Subcontractor Agreement For Professional Services: Tailored for consulting, IT, and other service-based industries with focus on deliverables and intellectual property rights
• Electrical Subcontractor Agreement: Specialized for electrical work with detailed safety protocols and industry compliance requirements
• Independent Subcontractor Agreement: Emphasizes contractor independence and prevents employer-employee relationships
• Subcontractor Non Compete Agreement: Adds competitive restrictions to protect business interests
• Subcontractor To Subcontractor Agreement: Used when one subcontractor delegates work to another subcontractor

• Primary Contractors: Construction companies, IT firms, or manufacturing businesses who hold the main contract and need specialized work completed
• Subcontractors: Specialized firms or professionals who perform specific tasks, from electrical work to software development
• Legal Teams: In-house counsel or external lawyers who draft and review agreements to ensure compliance with Indian contract laws
• Project Managers: Oversee the relationship, monitor deliverables, and ensure adherence to agreement terms
• Finance Teams: Handle payment schedules, invoicing, and financial compliance as outlined in the agreement
• Quality Control Officers: Monitor work standards and ensure deliverables meet specified requirements

• Basic Details: Gather complete business information, GST numbers, and contact details for both parties
• Project Scope: Define exact deliverables, quality standards, and project milestones with specific dates
• Payment Terms: Determine rates, payment schedule, and GST implications
• Documentation: Collect necessary licenses, certifications, and insurance proof from the subcontractor
• Legal Requirements: Check compliance with Indian Contract Act and industry-specific regulations
• Review Process: Use our platform to generate a legally-sound agreement, then review all terms with stakeholders
• Signatures: Ensure authorized representatives from both parties sign and date the agreement

• Party Details: Full legal names, addresses, and registration numbers of both contractor and subcontractor
• Scope of Work: Detailed description of services, deliverables, and quality standards
• Payment Terms: Compensation structure, payment schedule, and GST requirements
• Timeline: Project start date, milestones, and completion deadlines
• Confidentiality: Protection of trade secrets and proprietary information
• Liability: Risk allocation, indemnification, and insurance requirements
• Termination: Conditions for contract ending and notice periods
• Dispute Resolution: Jurisdiction choice and arbitration procedures under Indian law
• Compliance: References to relevant Indian labor and industry regulations

A Subcontractor Agreement differs significantly from an Agency Agreement in several key aspects, though both involve delegating work to external parties. Understanding these differences is crucial for Indian businesses to choose the right contract for their needs.

• Legal Relationship: Subcontractors work independently on specific project components, while agents represent the principal company and can make binding decisions on its behalf
• Scope of Authority: Agency agreements grant broader powers to act for the business, whereas subcontractor agreements limit authority to defined project tasks
• Payment Structure: Subcontractors typically receive project-based payments, while agents often earn commissions or ongoing fees
• Liability Framework: Under Indian law, principals are directly liable for agent actions but have limited liability for independent subcontractor work
• Duration: Subcontractor agreements usually end with project completion, while agency relationships tend to be ongoing