A California subcontractor agreement can set forth the terms of an agreement between a general contractor and a subcontractor performing specialized work on a construction project. A written subcontractor agreement can include matters such as the scope of work to be performed, the amount and timing of payment, and other similar terms.
One provision that cannot be included in a subcontractor agreement is a waiver or indemnification clause, compensating the contractor for negligence claims for which the subcontractor is not specifically liable. A well-drafted contract can help avoid disputes and ensure prompt and full payment for work performed.
“‘Subcontractor’ means a contractor that does not have a direct contractual relationship with an owner. The term includes a contractor that has a contractual relationship with a direct contractor or with another subcontractor.”
Below, you can download a California subcontractor agreement template in PDF or Word format:
How long does a contractor have to pay a subcontractor in California?
Per California Business and Professions Code § 7108.5(a), when the general contractor receives a payment from the owner, they must pay subcontractors no later than seven days after receipt.