Construction Subcontract Agreement

Summary

This template construction subcontract agreement may be used when a subcontractor is constructing a project for a general contractor using the traditional "Design-Bid-Build" project delivery method and the subcontractor building the project will be paid a lump sum. This template includes practical guidance, drafting notes, and alternate and optional clauses. In a typical construction project, the project owner hires a general contractor (referred to here as the Contractor) to construct the project. More often than not, the Contractor then hires subcontractors to complete all or some of the work. Subcontractors often specialize in only one type of work. Examples of subcontractors include, but are not limited to, electricians, heat ventilation air conditioning (HVAC) and fire protection installers, plumbers, drywallers, riggers, painters, roofers, and flooring specialists. The initial subcontract draft is usually prepared by the attorney for the Contractor. This subcontract is drafted from the Contractor's perspective but contains many subcontractor-friendly alternate and optional clauses. For a full listing of key content covering construction subcontract agreements, see Construction Subcontract Agreement Resource Kit. For further guidance on drafting and negotiating a construction subcontract, see Subcontractor's Fixed-Price Construction Subcontract Checklist and Contingent and Timing Payment Provisions in Construction Subcontracts. For a construction agreement, see Construction Contract. See also Warren's Forms of Agreements § 22.2. For a discussion of pay-if-paid clauses and pay-when-paid clauses in subcontracts, see Contingent Payment Clauses in Construction Subcontracts State Laws Survey. For an outline of common provisions found in a fixed-price construction subcontract, see Fixed-Price Construction Subcontracts: Drafting and Negotiation Strategies. For a discussion of the permissible scope of indemnification in construction contracts, see Permissible Scope of Indemnification in Construction Contracts State Law Survey. For information on mechanic's liens, see Mechanic's Lien Resource Kit. For a full listing of key content covering the construction process, see Construction Resource Kit. For a list of key resources covering construction-related tasks for associates, in-house attorneys, and interns, see First Year Associate Resource Kit: Construction, Junior Associate Resource Kit: Construction, In-House Construction Resource Kit, Summer Associate Resource Kit: Construction, and Federal Government Summer Intern Resource Kit: Construction. For related treatises, see Texas Transaction Guide--Legal Forms § 83A.26 (Actions Against Parties to Construction Contracts) and NY Practice Guide: Business and Commercial § 13.09 (Relationship Between Contractor and Subcontractor). To compare state law construction contract provisions, see the Construction Law State Law Comparison Tool.