A handshake doesn’t cut it in commercial construction. When you’re managing high-stakes projects with tight schedules and strict compliance, your subcontractor contracts must be clear, complete, and enforceable.

An incomplete or vague contract can lead to disputes, delays, and lost money. Worse, it can leave you with no legal recourse when expectations aren’t met. In this article, we’ll walk through what should be included in every construction subcontractor contract — and how it protects you as a GC or PM.

Subcontractor Contracts Are More Than Formalities

A well-structured contract does more than cover you legally. It:
● Defines expectations clearly
● Reduces ambiguity around scope, timeline, and payment
● Encourages accountability from the subcontractor
● Serves as a reference in case of conflict
● Demonstrates professionalism to owners and project partners

Without a clear contract, even experienced subcontractors can drift off course — and you
may be left covering the damage.

What Every Construction Subcontractor Contract Should Include

Here are the non-negotiables:

1. Scope of Work (SOW)
   Clear description of what the subcontractor is responsible for delivering.
   
2. Project Schedule & Deadlines
   Define milestones, critical path dependencies, and penalties for delay if applicable.
   
3. Payment Terms
   Breakdown of payment structure (progress payments, retainage, final payment
   conditions).
4. Compliance Requirements
   W-9s, insurance certificates, safety plans, OSHA adherence, and licensing.
   
5. Change Order Process
   Steps for approving, pricing, and documenting scope changes.
   
6. Termination Clauses
   Grounds for termination, notice requirements, and financial implications.
   
7. Dispute Resolution
   Mediation, arbitration, or litigation processes in case of disagreement.
   
8. Indemnity & Liability
   Who bears responsibility for damages, errors, or injuries.

Where Construction Contracts Often Go Wrong

Some contracts fail not because of what they include — but because of what they leave out.
Watch for:
● Vague language around timelines or deliverables
● No protocol for change orders
● No defined method for handling delays or weather impacts
● Missing attachments (drawings, specs, compliance forms)
● Lack of field-level documentation (who signs off and when?)

The Best Subs Bring the Right Attitude to the Agreement

A great contract won’t fix a bad subcontractor. But the right subcontractor will:
● Respect the contract terms without constant enforcement
● Submit documentation early and stay compliant
● Communicate scope adjustments proactively
● Collaborate during scope clarifications
● Accept accountability when issues arise
At RealPlan Construction Inc., we view contracts as part of doing excellent work. Our teams are trained to work within defined scopes, meet deadlines, and maintain documentation so GCs can stay focused on the big picture.

Need a Subcontractor Who Works by the Book — and Delivers?

RealPlan Construction Inc. provides fully compliant, detail-oriented teams who work within
structured contracts across Massachusetts.