Subcontract Agreement
The agreement a general contractor uses to hire a subcontractor — carrying the prime contract's terms down to the crew that does the work.
AI-assisted document tools — not legal advice. A starting point you can understand and customize.
What it is
A subcontract agreement is how a general contractor engages a trade subcontractor for part of a larger job. It mirrors, or 'flows down', the relevant terms of the prime contract, then adds the details that decide whether a sub gets paid on time: scope, price, retainage, payment timing, and who carries the risk. The payment and indemnification clauses are where most subcontract disputes live.
When you’d use it
- A general contractor is hiring a trade sub (framing, drywall, electrical, and so on).
- You need the prime contract's obligations to flow down to the sub.
- You want payment timing, retainage, and lien-waiver conditions spelled out.
- The sub's scope needs to be carved out cleanly from the overall project.
Key sections & clauses
The parts a subcontract agreement usually needs to cover. Use them as a checklist — XOsign flags the ones a draft is missing.
Flow-down terms
Which prime-contract obligations bind the subcontractor.
Scope of work
The specific trade work the sub is responsible for — and what is excluded.
Payment terms
Price, progress payments, and whether payment is 'pay-when-paid' or 'pay-if-paid'.
Retainage
The amount withheld from the sub until the work is complete and accepted.
Lien waivers
The waivers a sub must sign in exchange for each payment.
Insurance & additional insured
Coverage the sub must carry and whether the GC is named as additional insured.
Indemnification
Who is responsible for claims, damage, or injury arising from the sub's work.
Termination & backcharges
How the GC can end the subcontract and charge back costs.
Understand it, translate it, strengthen it, sign it.
The same four steps behind every XOsign agreement — from the moment you upload or start a draft to the moment it’s signed.
Understand it
XOsign reads the document and explains every clause in plain language, so you know what you're agreeing to before you sign — not after.
Translate it
Read and sign in English or Spanish. XOsign presents the agreement side by side so nobody signs a document they can't fully read.
Strengthen it
XOsign flags missing, vague, or one-sided terms and suggests clearer language — so the agreement actually protects you.
Sign it
Send it for legally binding e-signature (ESIGN/UETA) with a tamper-evident audit trail and a trusted timestamp on the signed copy.
Frequently asked questions
What is a flow-down clause in a subcontract?
What is the difference between pay-when-paid and pay-if-paid?
Why does a subcontract require lien waivers?
XOsign provides AI-assisted document tools and does not provide legal advice. These templates are starting points you can understand and customize — not a substitute for advice from a qualified attorney. Requirements vary by state and situation.
Start your subcontract agreement in XOsign.
Understand every clause, translate it for whoever signs, and send it for signature — all in one place.