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Standard Form Subcontract Agreement

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AGREEMENT BETWEEN SUBCONTRACTOR AND SUB-SUBCONTRACTOR

Alberta Standard Construction Sub-subcontract
ACA Form B - 2013

SUBCONTRACTOR’S COPY SUB-SUBCONTRACT NO.

THIS AGREEMENT made this day of , A.D. 20

BETWEEN

name
(hereinafter called the “Subcontractor”)

address

AND

name
(hereinafter called the “Sub-subcontractor”)

address

WHEREAS THE SUBCONTRACTOR has entered into an agreement (hereinafter called the “Subcontract”) dated the day of , 20 , with

name
(hereinafter called the “Prime Contractor”)

for the construction of
(hereinafter called the “Subcontract Work”)

under which
has been appointed as the Consultant (hereinafter called the “Consultant”)

NOW THEREFORE THIS SUB-SUBCONTRACT WITNESSETH AS FOLLOWS:

ARTICLE 1 - THE WORK

A. The Sub-subcontractor shall supply all the labour, supervision, materials, tools, and equipment necessary to construct, install and complete the following portion(s) of the Subcontract Work (hereinafter called the “Work”), at and for the Sub-subcontract price(s) (hereinafter called the “Sub-subcontract Price”), namely:

all in a proper and workmanlike manner and in accordance with the requirements and on the terms and conditions of: (1) the Prime Contract, (2) the Subcontract, and (3) this Sub-subcontract including the Sub-subcontract Conditions, together with those Appendices, if any, listed hereafter forming part hereof (hereinafter called the “Contract Documents”):

B. The Sub-subcontractor will begin work on or about the day of , 20 , and will carry on and complete the Work on or before the day of , 20 , generally in accordance with the Schedule attached hereto or as otherwise provided for by the Prime Contract or the Subcontract.

C. The period of time in SSC 18 shall be days.

ARTICLE 2 - PAYMENT

The Subcontractor agrees, subject to such additions and deductions for changes as may be determined in accordance with the terms hereof, to pay the Sub-subcontractor the sum of and applicable taxes in Canadian funds.

A. Invoices ( copies) covering progress claims showing this Sub-subcontract Number must be received by the Subcontractor located at

no later than days before the end of the month in which materials were supplied or work performed.

B. Payments shall be made monthly on progress estimates as approved by the Subcontractor covering % of the value of the Work completed by the Sub-subcontractor to the end of the previous month; such payments to be made days after receipt of payment from the Prime Contractor.

D. If the Subcontractor fails to make any payments... interest of above the Prime Rate...

The Prime Rate shall be the rate of interest quoted by

ARTICLE 3 - AGREEMENT

All the documents as set forth in Article 1 A. form part of this Sub-subcontract and the whole shall constitute the entire contract between the parties.

ARTICLE 4 - ADDRESSES FOR NOTICES

Addresses for notices for the parties under this Sub-subcontract are:

IN WITNESS WHEREOF the parties hereto have executed this Sub-subcontract including Conditions following, the day and year first above written,

SIGNED, SEALED AND DELIVERED

in the presence of

Subcontractor

Seal

Sub-subcontractor

Seal

Apply an ACA
Form B
SUBCONTRACTOR
copyright seal here.

Use of this form without an ACA Form B copyright seal constitutes an infringement of copyright. Use of this form with an ACA Form B copyright seal demonstrates that it is intended by the parties to be an accurate and unamended version of ACA Form B Sub-subcontract - 2013.


ACA Form B – 2013 SSC Conditions

SUB-SUBCONTRACT CONDITIONS

Enter text✕

What the Standard Form Subcontract Agreement Is

The Standard Form Subcontract Agreement is a written contract used to define the relationship between a contractor and a subcontractor for a specific scope of work. It specifies scope, schedule, price or payment terms, insurance, indemnity, change-order procedures, and dispute-resolution mechanisms. Parties use this form to allocate risk, establish performance milestones, and create a record for lien, payment-bond, and insurance purposes. The document is commonly combined with exhibits such as scopes of work, schedules, and payment schedules to create an enforceable commercial agreement.

Why a Standard Form Subcontract Agreement Matters

A clear subcontract reduces disputes by defining obligations, payment timing, change-order processes, and remedies. It protects both parties with defined insurance, indemnity, and warranty provisions and supports compliance with project and statutory requirements.

Why a Standard Form Subcontract Agreement Matters

Who Typically Prepares and Signs This Subcontract

Engage legal counsel for complex or high-value subcontracts; use standard forms for routine projects but customize critical clauses for project- or state-specific requirements.

  • Prime contractor project managers who need defined deliverables, schedule, and payment controls.
  • Subcontractor executives and site supervisors who require clear scope, payment terms, and risk allocation.
  • Legal or compliance teams that confirm insurance, indemnity, bonding, and lien waiver language.

Core Elements to Include in a Professional Subcontract

A complete subcontract groups essential clauses to manage scope, timing, payment, risk, and dispute resolution so that performance and remedies are predictable.

Scope

Define precise work descriptions, deliverables, and accepted changes. Attach drawings, specifications, and a definitive scope exhibit to avoid ambiguity and change-order disputes.

Schedule

State start and completion dates, milestones, liquidated damages or day rates, and notice procedures for delays to preserve entitlement to extensions or relief.

Payment

Include contract price, progress-payment schedule, retainage rules, invoice requirements, and reference to certified payroll or lien waiver procedures when required.

Insurance

Specify required coverage types and limits (general liability, workers' comp, professional liability), certificate requirements, and additional insured endorsements if applicable.

Indemnity

Allocate responsibility for claims, third-party damages, and defense costs. Make indemnity scope and caps clear to limit open-ended liability where intended.

Termination & Remedies

Detail termination for convenience and default, cure periods, suspension rights, and remedies including back-charge procedures and dispute-resolution steps.

Step-by-Step: Completing the Standard Form Subcontract

Follow this sequential checklist to prepare, review, and execute the subcontract to reduce rework and legal risk.

  • 01
    Gather documents: Collect scope exhibits, insurance certificates, and bid pricing.
  • 02
    Populate form: Enter names, dates, contract sum, and scope references.
  • 03
    Review clauses: Confirm insurance, indemnity, and change-order language.
  • 04
    Execute: Obtain authorized signatures and distribute executed copies.

Where to Send and How the Signed Subcontract Circulates

Routing the executed subcontract correctly ensures all parties and the project file have authoritative copies for compliance and claim support.

  • To Contractor: Send the fully executed original to the contractor's contract administrator.
  • To Subcontractor: Provide the subcontractor an executed copy for its project records and site posting.
  • To Insurance Broker: Send required certificates and endorsements to the contractor's risk manager.
  • To Project File: Archive the executed agreement with project documents for lien and audit purposes.

Online Workflow Settings for Digital Completion

Configure a controlled digital workflow to capture intent, authentication, and an audit trail that supports enforceability.

Field Configuration
Sign Order Set sequential signing to preserve signatory order
Authentication Use email + optional SMS code for stronger signer attribution
Template Use Save final document as a template for repeated projects
Storage Archive signed PDFs with audit trail and version control

Digital Signing and File Requirements

Ensure the chosen system supports retention and export to meet audit, bonding, and regulatory requirements without altering signed content.

  • File formats: Use PDF/A or standard PDF to retain formatting and signatures.
  • Audit trail: Capture timestamps, IP, and signer emails for provenance.
  • Integrations: Integrate with project systems such as Procore or NetSuite where available.

Security and Compliance Features to Verify

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.
Audit Trail: Comprehensive timestamps, IP, and action logs.
HIPAA Support: BAA available where PHI is present.
ESIGN / UETA: Platform supports ESIGN and UETA compliance.
21 CFR Part 11: Controls available for FDA-regulated records.
Certifications: SOC 2 Type II, ISO 27001, and PCI DSS.

Penalties and Risks If the Subcontract Is Incorrect

Unenforceable Terms: Ambiguous clauses can lead to lost claims or rescission.
Payment Delays: Improper invoice language may trigger withheld payments.
Bond/Lien Issues: Missing bonding references can void bond claims.
Regulatory Fines: Noncompliance with payroll or safety rules may incur penalties.
Invalid Signatures: Improper execution can render the contract void.
Third-Party Claims: Weak indemnities may expose parties to defense costs.

Common Mistakes to Avoid When Preparing the Subcontract

  • Leaving scope descriptions vague or relying on verbal clarifications that do not survive contract disputes.
  • Failing to include precise payment milestones, invoicing requirements, or retainage provisions that drive slow or disputed payments.
  • Overlooking required insurance endorsements or failing to obtain certificates before work begins, which complicates claim handling.
  • Neglecting signatory authority checks so an individual signs without corporate authorization, risking challenge to enforceability.

Comparing eSignature Pricing and Capabilities for Subcontract Execution

Price and feature needs vary by volume and compliance requirements; this table compares starting price and key capabilities across vendors, with signNow listed first.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common execution and enforceability questions for Standard Form Subcontract Agreements, focusing on practical resolution steps.


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