Subcontractor Agreement Builder
PROGenerate legally compliant subcontracting agreements with proper indemnification structures, liability caps, insurance requirements, and state-specific compliance for construction projects.
Example Usage
Generate a subcontractor agreement for a commercial office renovation. Electrical subcontractor, $85,000 contract value, located in California. This is a repeat subcontractor we’ve used 5 times before. Need standard GL insurance ($1M), no performance bond required (under $100K). Use limited form indemnification per CA law. Include monthly progress billing with 10% retainage. Add 30-day mediation requirement before arbitration. Scope: Supply and install new power distribution, outlets, LED fixtures, and emergency lighting per drawings A-4.1 through A-4.6. Excludes solar system, backup generator, and data cabling.
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Suggested Customization
| Description | Default | Your Value |
|---|---|---|
| Total contract value; determines if performance bond required | 100000 | |
| Legal form: broad, intermediate, or limited | intermediate | |
| Percentage withheld from each payment (5-15% typical) | 10 | |
| Minimum GL insurance per occurrence | 1000000 | |
| Billing frequency: weekly, bi-weekly, monthly_progress, lump_sum | monthly_progress | |
| State jurisdiction for compliance | California |
A comprehensive AI skill for generating legally compliant subcontractor agreements in the construction industry. This skill automates the creation of critical contractual terms, focusing on indemnification structures, liability allocation, insurance requirements, and risk distribution between general contractors and subcontractors.
What This Skill Does
The Subcontractor Agreement Builder transforms a 4-8 hour legal drafting process into a 30-60 minute automated workflow. It generates complete, customized subcontracting agreements tailored to specific jurisdictions, project types, and risk profiles.
Core Capabilities
- Indemnification Structure Generation: Automatically selects Broad, Intermediate, or Limited Form indemnification based on risk profile and state regulations
- Liability Cap Configuration: Creates enforceable limitation of liability clauses with appropriate per-occurrence and aggregate caps
- Insurance Requirement Builder: Specifies types, amounts, and proof-of-insurance requirements for General Liability, Workers Comp, Professional Liability, and Pollution coverage
- Payment & Retainage Terms: Generates transparent payment schedules with retainage percentages compliant with state law
- Performance Bond Requirements: Determines bond needs based on contract value and risk thresholds
- Dispute Resolution Clauses: Produces mediation, arbitration, or litigation procedures appropriate to project scope
- Risk Allocation Matrix: Maps specific work tasks to responsible parties with corresponding obligations
Who This Is For
- General contractors and construction managers
- Project owners and developers
- Construction company legal departments
- Small/mid-size contractors managing multiple subcontractors
- Government and public works contractors
- Real estate development professionals
Key Features
Three Indemnification Types
- Broad Form - Maximum protection for contractor (limited by law in many states)
- Intermediate Form - Most commonly used in commercial construction
- Limited Form - Required in states with strict anti-indemnity laws
State-Specific Compliance
The skill includes a comprehensive anti-indemnity law matrix covering California, Texas, Colorado, Washington, New York, and other states with specific restrictions.
Insurance Requirements Matrix
Customized coverage requirements by trade:
- Electrical, Plumbing, HVAC: $1M/$2M minimum
- Roofing, Excavation: $2M/$4M with excess liability
- Hazmat/Asbestos: $2M/$5M with pollution coverage
Performance Bond Thresholds
- Under $50K: Retainage only
- $100K-$500K: Bond recommended (1.5-2.5% premium)
- Over $500K: Bond required (2-3% premium)
- Public works: Per statutory requirements
Important Disclaimer
This skill generates template language for educational and reference purposes. All agreements must be reviewed by a qualified construction attorney licensed in the relevant jurisdiction before execution. Laws vary significantly by state and project type.
Research Sources
This skill was built using research from these authoritative sources:
- Liability for Subcontractors Sample Clauses Comprehensive database of real contract clauses showing liability allocation
- RICS Subcontracting Standards Professional standards for named subcontractors and collateral warranties
- Analysis of Indemnity Obligations from Subcontractor Perspective Deep legal analysis of three indemnity types with case law
- Managing Subcontractor Risks Legal Guide Practical strategies for risk allocation and contractual protections
- Subcontractor Agreement Template (ISCVE) Professional template covering indemnification, liability limits, and insurance
- Insurance Indemnification Clauses Guide How indemnification types interact with insurance requirements
- AIA Contract Documents for Subcontractors Analysis of industry-standard AIA A401 agreement
- Guide to Construction Subcontractor Agreements Step-by-step guide covering roles, payment terms, and best practices
- Contracts - Insurance Clauses Guidelines Guidelines for specifying insurance types, coverage amounts, and endorsements