Subcontractor Agreement Template: What Every Custom Builder Should Include

Too many custom home builders still operate on handshake deals with their subs. It works fine — until it doesn't. One dispute over scope, one injury without proper insurance, one no-show on a critical path item, and you're exposed.

Essential Clauses for Sub Agreements

1. **Scope of Work** — Be specific. 'Framing' isn't enough. List exactly what's included and excluded.

2. **Contract Price & Payment Terms** — Fixed price or T&M? When do they get paid? Net 30? Upon completion?

3. **Timeline & Schedule** — Start date, completion date, and what happens if they're late.

4. **Insurance Requirements** — Minimum GL coverage, workers comp, and auto. Require a COI before work starts.

5. **Change Order Process** — No extra work without written approval. Period.

6. **Warranty** — How long do they stand behind their work? Industry standard is 1 year.

7. **Indemnification** — They're responsible for their crew's actions on your job site.

8. **Termination** — How either party can end the agreement and what happens to completed work.

COI Tracking

The most commonly missed item: expired insurance. Your sub's COI was valid when they signed the agreement 6 months ago, but is it still valid today? Set up 30-day expiration alerts and require updated COIs before each new project.

Digital Signing

Paper contracts get lost. Email attachments get buried. Use a system that sends the agreement digitally, gets an e-signature, and stores the executed copy where both parties can access it. Foundation handles sub agreements with e-signature, automatic COI tracking, and expiration alerts — so nothing falls through the cracks.