The Subcontract

Welcome

Hello, and welcome. This is Super Structures General Contractors — a national general contractor headquartered in Powhatan, Virginia — here to help you and your clients build something that lasts. We're glad you're with us, and we look forward to connecting with you.

Let's dig into The Subcontract. Here's the big idea to walk away with: Use a written subcontract covering scope, price/payment, schedule, insurance, and flow-down terms — never sub on a handshake. Master this and you become the person others come to with the hard questions.

Always use a written subcontract — a handshake is how disputes start.

What it should cover

• Scope — exactly what the sub is responsible for (and what they're not).
• Price and payment terms — schedule, retainage, and what triggers payment.
• Schedule — start, duration, and completion.
• Insurance and indemnification requirements.
• Flow-down terms — the relevant terms of your prime contract "flow down" to the sub, so they're bound to the same requirements you are.
• Change orders and dispute resolution.

Have your subcontract reviewed by an attorney.

Going Deeper (Intermediate)

Never put a sub to work on a handshake — use a written subcontract that defines scope, price, schedule, payment terms, insurance, and flow-down of the prime contract's obligations. The subcontract is what protects you when something goes wrong.

Advanced / Pro-Level

Key subcontract clauses to get right:

• Scope — detailed, with exclusions, so gaps don't land on you.
• Payment — pay-when-paid vs. pay-if-paid (big difference), retainage, and lien waivers required with each payment.
• Insurance — required limits, additional-insured and waiver of subrogation endorsements, COI before mobilization.
• Indemnity and flow-down of the prime terms (the sub is bound to what the owner requires of you).
• Change-order process, schedule obligations, and termination/default provisions. Get the COIs and signed subcontract before they set foot on site.

Practice Challenge

A sub damages another trade's finished work and has no signed subcontract. Why are you exposed? (Answer: without a subcontract you've got no agreed indemnity, insurance requirement, or backcharge mechanism — you may eat the repair and remain liable to the owner; the signed sub (with insurance/additional-insured and flow-down) is exactly what would have shifted that risk.)

In Practice

A handshake sub deal turns into a scope dispute mid-job. A written subcontract with clear scope, price, and flow-down terms settles it before it starts.

Common Mistakes to Avoid

• Subbing on a handshake
• Vague scope in the subcontract
• Missing flow-down and insurance terms

Takeaway: Use a written subcontract covering scope, price/payment, schedule, insurance, and flow-down terms — never sub on a handshake.

Educational content — follow tool manufacturer instructions and have subcontracts reviewed by an attorney.