Subcontractor Agreement (Construction) for the United States

Subcontractor Agreement (Construction) Template for United States

A legally binding agreement used in the United States construction industry that establishes the relationship between a general contractor and a subcontractor. It outlines the scope of work, payment terms, timeline, insurance requirements, and other essential terms for specific portions of a construction project. The agreement ensures compliance with federal and state construction laws, including OSHA regulations, labor laws, and state-specific contractor requirements.

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What is a Subcontractor Agreement (Construction)?

The Subcontractor Agreement (Construction) is essential for managing construction projects in the United States where specialized work is delegated to specific trade contractors. This document is commonly used when a general contractor needs to engage specialized contractors for specific aspects of a construction project, such as electrical work, plumbing, or HVAC installation. The agreement must comply with federal regulations including OSHA and FLSA, as well as state-specific construction laws. It typically includes detailed specifications about scope, timeline, payment terms, insurance requirements, and safety protocols, while addressing risk allocation and liability concerns specific to the construction industry.

What sections should be included in a Subcontractor Agreement (Construction)?

1. Parties: Identifies the general contractor and subcontractor, including legal entity names and addresses

2. Background: Describes the main project, primary contract, and context for the subcontract

3. Definitions: Key terms used throughout the agreement

4. Scope of Work: Detailed description of the specific work to be performed by the subcontractor

5. Payment Terms: Compensation, payment schedule, and conditions for payment

6. Timeline and Schedule: Project schedule, milestones, and completion dates

7. Insurance Requirements: Mandatory insurance coverage and limits

8. Warranties and Representations: Standard warranties regarding work quality and legal compliance

9. Termination: Conditions and procedures for contract termination

What sections are optional to include in a Subcontractor Agreement (Construction)?

1. Bonding Requirements: Required for larger projects or when specified by primary contract - use for projects over certain value threshold or when required by owner

2. Equipment and Materials: Specific provisions about who provides what equipment - use when there's shared equipment or special material requirements

3. Safety Protocols: Project-specific safety requirements - use for high-risk or specialized construction work

4. Environmental Compliance: Special environmental requirements - use for projects with environmental sensitivity or specific regulations

What schedules should be included in a Subcontractor Agreement (Construction)?

1. Schedule A - Scope of Work: Detailed specifications and drawings

2. Schedule B - Payment Schedule: Detailed breakdown of payments and milestones

3. Schedule C - Project Timeline: Detailed project schedule and milestones

4. Schedule D - Insurance Certificates: Copies of required insurance documentation

5. Schedule E - Safety Procedures: Specific safety protocols and requirements

6. Schedule F - Required Forms: State-specific forms and certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Fair Labor Standards Act (FLSA): Federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the construction industry

Occupational Safety and Health Act (OSHA): Federal law ensuring safe and healthful working conditions by setting and enforcing standards and providing training, outreach, education and assistance in construction sites

Davis-Bacon Act: Federal law requiring payment of prevailing wages on federally funded construction projects, including minimum wage rates for various trades

Contract Work Hours and Safety Standards Act: Federal law requiring overtime pay for laborers and mechanics on federal construction contracts over $100,000

Immigration Reform and Control Act: Federal law requiring employers to verify the identity and employment eligibility of all workers, including subcontractors

Internal Revenue Code - Worker Classification: Federal tax regulations governing the classification of workers as employees or independent contractors in construction projects

State Contractor Licensing Requirements: State-specific laws governing the licensing and certification requirements for contractors and subcontractors

State Workers' Compensation Laws: State-specific requirements for providing workers' compensation insurance coverage for construction workers

State Unemployment Insurance: State-specific requirements for unemployment insurance contributions and coverage for construction workers

State Construction Lien Laws: State-specific mechanics' and materialmen's lien rights and procedures for securing payment for construction work

State Prompt Payment Laws: State-specific requirements for timely payment to contractors and subcontractors on construction projects

State Safety Regulations: Additional state-specific safety requirements beyond federal OSHA standards for construction sites

AIA Contract Forms: Industry-standard construction contract forms published by the American Institute of Architects

Construction Industry Payment Protection Act: Legislation protecting contractors and subcontractors' right to payment for work performed on construction projects

Local Building Codes: Municipal and county-specific construction and building requirements that must be followed in construction projects

Bonding Requirements: Performance and payment bond requirements for construction projects to guarantee completion and payment to subcontractors

General Liability Insurance: Insurance coverage required for protecting against third-party claims for property damage or bodily injury

Workers' Compensation Insurance: Mandatory insurance coverage for workplace injuries and illnesses in construction projects

Professional Liability Insurance: Insurance coverage for errors and omissions in professional services provided in construction projects

Builder's Risk Insurance: Insurance coverage protecting the construction project from damage during the construction period

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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