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Subaward Agreement

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Employee Authorship Certificate

Agreement made on the between (Name of Employee) of referred to herein as Employee, and (Name of Employer), a corporation organized and existing under the laws of the state of with its principal office located at referred to herein as Company.

For and in consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned Employee of the Company hereby gives these representations and warranties for the purpose of assuring to the Company, and any other parties who may rely hereupon, that the Company has all right, title and interest in certain Proprietary Creations over which ownership is claimed by the Company.

1. The Employee specifically intends that the representations and warranties contained herein may be relied upon by any party that is contemplating an acquisition, license, right to distribute, or any other interest in and to any Proprietary Creations covered hereby.

2. Employee hereby represents, warrants, acknowledges, certifies and agrees as follows:

A. Employee has carefully considered and investigated each of the representations, warranties and acknowledgements and the factual circumstances involved with each such representations, warranty and acknowledgements set forth herein.

B. Employee gives these representations, warranties and acknowledgements with full knowledge and intent that they may and will be relied upon by third parties who are entering or contemplating a potential legal relationship with the Company involving the Proprietary Creations.

C. Employee is the author of the Proprietary Creations described in Exhibit A attached hereto (the Employee Creations), and no other party had any input or hand in the conception, development, creations, planning or reduction to practice of the Employee Creations.

D. Employee Creations were developed solely by the Employee, on Employee’s own time and using the Employee’s own materials, during the time spans identified in Exhibit A.

E. Employee was a contributing author of the Proprietary Creations described in Exhibit B attached hereto, and only the parties listed in Exhibit B had any input or hand in the conception, development, creations, planning or reduction to practice of the Employee Creations. Employee’s contributions to the Proprietary Creations were developed solely by Employee, on Employee’s own time and using the Employee’s own materials, during the time spans identified on Exhibit B.

3. The Employee Creations and the Employee’s Contributions to the Collective Creations shall be referred to hereinafter as the Proprietary Creations.

4. Employee hereby further represents, warrants, acknowledges, certifies and agrees as follows:

A. Employee has assigned all of Employee’s right, title, and interest in and to the Proprietary Creations to the Company and pursuant to such assignments, the Company has obtained full right, title and interest in and to the Proprietary Creations, including but not limited to (i) all rights of a copyright owner, including but not limited to all of the exclusive rights provided by the United States Copyright Act, (ii) all patent, trade secret and other proprietary rights of every nature and type, (iii) the right to sell, lease, license, exchange, convey and assign the proprietary Creations, (iv) the right to publish, distribute, copy, publicly perform and display any and all of the Proprietary Creations, alone or in conjunctions with other works, (v) the right to modify, amend, enhance, upgrade, improve, and create derivative works based in whole or in part on the Proprietary Creations, and (vi) the right to take any and all steps necessary to secure and assert the Companies rights as aforesaid.

B. Except for the integration or use of the pre-existing works of other parties as listed in Exhibit C attached hereto, the Proprietary Creations do not infringe upon or otherwise violate the proprietary rights of any third party, including but not limited to patents, trademarks, copyrights, trade secrets, privacy rights, moral rights, or any other proprietary rights provided under any state or federal law. Employee has received and has made a valid assignment of a license to use the pre-existing works defined in Exhibit C on a non-royalty basis, in perpetuity, anywhere within the world from the owner of said pre-existing works.

C. Employee has not exploited the Proprietary Creations for Employee’s own purposes or for the purposes or benefit of any other party other than the Company.

D. No claim is pending, has been threatened, nor but for the passage of time will be pending, threatened or will accrue that could have a direct or indirect effect on the Proprietary Creations.

E. The Proprietary Creations were not created during the Employee’s employment for any other employer or as a work for hire of any other party. The Proprietary Creations or the use and distribution thereof, will not violate any non-compete, non-solicitation or any other restrictive covenant contained in any employment agreement or other agreement that the Employee may have had with any other employer or party.

F. All proprietary software programs and other tools used by the Employee in the creation of the Proprietary Creations were duly and validly licensed for use by the Employee and were used within the scope of the applicable license agreement when creating the Proprietary Creations.

G. Employee has executed this Authorship Certificate with full knowledge of its content and significance and with full knowledge that other parties will rely on the content hereof when making important business decisions and entering potential transaction.

WITNESS our signatures as of the day and date first above stated.

By:

Attach Exhibits

Enter text✕

What a Subaward Agreement Is and When It Applies

A Subaward Agreement is a formal contract used by a prime award recipient to delegate part of funded work to a subrecipient under a federal grant or cooperative agreement. It names the parties, describes the scope of work, establishes the budget and payment schedule, and documents the flow‑down of compliance obligations, audit access, and reporting responsibilities. Subaward Agreements record monitoring obligations, performance milestones, and cost allowability measures so the prime and subrecipient maintain clear audit trails and protect federal funds during performance and closeout.

Why a Clear Subaward Agreement Matters

A Subaward Agreement clarifies roles, preserves audit trails, and captures federal compliance obligations for funded work. It reduces financial and compliance risk for both prime recipients and subrecipients, supports accurate cost allocation, and documents performance and reporting requirements.

Why a Clear Subaward Agreement Matters

Who Drafts, Signs, and Manages Subaward Agreements

Prime recipients, university grants offices, contracting officers, research administrators, and subrecipient program managers commonly prepare and review Subaward Agreements.

  • Prime award administrators and grants managers responsible for federal compliance and fund distribution.
  • University sponsored programs offices overseeing research subawards and flow‑down terms.
  • Nonprofit and for‑profit subrecipients executing scope of work and cost reporting obligations.

Auditors, federal program officers, and legal counsel also review subawards to confirm compliance with award terms, financial controls, and reporting obligations.

Core Components to Include in a Professional Subaward Agreement

A complete Subaward Agreement defines parties, scope, deliverables, budget, compliance flow‑downs, reporting, intellectual property, and dispute resolution. Each section should be explicit about responsibilities, invoicing cadence, allowable costs, and monitoring procedures to ensure audit readiness.

Parties

Identify prime recipient and subrecipient legal names, employer identification numbers, primary contacts, and authorized signatories; clarify organizational roles for performance and invoicing.

Scope of Work

Describe deliverables, milestones, performance standards, location of work, acceptance criteria, and period of performance with measurable outcomes tied to the prime award.

Budget & Payments

Include line‑item budget, allowable costs, payment schedule, invoicing instructions, indirect cost treatment, and audit access for federal cost allowability and reimbursement.

Compliance Flow‑downs

Incorporate federal terms, audit rights, procurement standards, lobbying restrictions, and subrecipient monitoring and reporting obligations required by the prime award.

Reporting & Records

Specify financial and program reporting cadence, required formats, record retention periods, and access for audits and monitoring by prime and federal agencies.

Termination & Remedies

Define termination for convenience/default, notice periods, refund obligations, final property disposition, and dispute resolution procedures to protect federal interests.

Essential Fields and Quick Data Checklist

Effective Date: Enter as MM/DD/YYYY
Parties: Legal names and EINs
Scope Identifier: Project title and award number
Budget Total: Total federal amount obligated
Indirect Rate: Applied F&A rate and base
Signatures: Authorized signers and dates

Step‑by‑Step: Prepare and Execute a Subaward Agreement

Follow these steps to prepare, review, and execute a compliant Subaward Agreement with accurate documentation, approvals, and monitoring plans.

  • 01
    Gather Award Info: Obtain prime award terms, special conditions, and budget limits.
  • 02
    Draft Key Terms: Populate scope, budget, compliance flow‑downs, and reporting schedule.
  • 03
    Review & Negotiate: Grants, finance, and legal teams review liability, IP, and cost allowability.
  • 04
    Execute & Monitor: Obtain signatures, distribute executed copies, and set monitoring cadence.

How to Configure an Online Subaward Workflow

Set up routing, signer roles, and authentication so approvals, attachments, and audit logs capture required compliance evidence for each subaward.

Field Configuration
Notification Settings Email reminders with escalation rules
Authentication Level Email link, SMS code, or two‑factor
Conditional Fields Show budget fields only when applicable
Attachment Requirements Specify required supporting documents for invoices

Typical Routing and Submission Path for a Subaward

This flow describes drafting, internal review, subrecipient negotiation, signature, and archival for a Subaward Agreement.

  • Draft: Populate template with award and scope details
  • Internal Review: Grants and legal teams verify compliance and budget
  • Subrecipient Review: Subrecipient reviews, negotiates, and returns executed copy
  • Execution: Prime signs, archives, and initiates monitoring activities

Technical and Integration Requirements for eSigning and Recordkeeping

Integrations and technical requirements support secure eSignature, record retention, and automated audit trail capture across document management systems used by recipients.

  • File Formats: PDF and Word DOCX files
  • Authentication: Email, SMS, and KBA options
  • Integrations: NetSuite, Salesforce, and Google Workspace

Key Deadlines and Timing Considerations

Track critical deadlines from award notice through subaward issuance, invoice submission, and final closeout to meet prime and federal requirements.

Award Notification and Prime Terms:

Begin subaward negotiation within the prime award timeframes.

Subaward Issuance Deadline:

Issue subaward typically within 30–90 days of prime award, per prime policy.

Invoice Submission Schedule:

Submit invoices per agreed monthly or quarterly cadence for reimbursement.

Performance Period End:

Costs must be allowable within the stated period of performance.

Closeout and Records:

Complete final reports and retain records per retention policy.

Milestones: From Award to Closeout

Follow these sequential milestones from award acceptance to closeout to ensure compliance and complete documentation for audits and reporting.

01

Award Acceptance

Confirm award terms and identify need for subawards

02

Subaward Drafting

Prepare terms, budget, flow‑downs and deliverables

03

Execution

Obtain signatures and establish monitoring schedule

04

Closeout

Finalize reconciliation, final reports, and archive files

Common Pitfalls to Avoid When Preparing a Subaward

  • Unclear scope leads to disputes: failing to define deliverables or acceptance criteria causes misunderstandings, delayed payments, and difficulties assessing subrecipient performance during audits.
  • Incorrect budget classifications: misclassifying indirect versus direct costs can produce questioned costs and disallowed expenditures in federal audits, increasing financial liability.
  • Missing flow‑down clauses: omitting required federal terms, audit rights, or procurement standards prevents enforcement of compliance obligations on the subrecipient.
  • Insufficient monitoring and documentation: inadequate monitoring, reconciliations, and retention increases the risk of audit findings and funds recovery.

Penalties and Risks from an Incorrect or Incomplete Subaward

Financial Disallowance: Questioned costs; repayment possible
Withholding: Prime may stop payments for noncompliance
Audit Findings: Single Audit or agency findings recorded
Penalties: Civil penalties or repayment obligations
Reputational Risk: Damaged program credibility and future awards
Termination: Possible termination of subaward for default

How a Subaward Agreement Differs from Other Contract Types

Compare Subaward Agreements with common alternatives to confirm correct document selection and to understand funding, compliance, and enforcement differences.

Document Type Comparison Subaward Agreement Subcontract Consulting Agreement
Primary Parties prime & subrecipient prime & contractor client & consultant
Funding Source federal pass‑through prime funds private or contract funds
Flow‑down Required sometimes
Typical Use research or program subgrant procurement advisory services

eSignature Vendor Comparison for Subaward Workflows

Compare starting price, trial availability, bulk send, audit trail, HIPAA compliance, and envelope caps to align eSignature platform choice with subaward volume, compliance needs, and integrations.

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 Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions About Subaward Agreements

Answers to common questions about drafting, signing, and storing Subaward Agreements, and how eSignature affects enforceability and recordkeeping.


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