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Subhauler Services Agreement

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Subhauler Services Agreement

This Subhauler Services Agreement ("Agreement") is entered into as of Effective Date: by and between:

Whereas

WHEREAS, Client is engaged in the business of freight brokerage and motor carrier services and requires the performance of transport services for certain loads; and

WHEREAS, Subhauler represents that it is duly licensed, insured, and able to perform carriage and related services on behalf of Client in accordance with applicable law and industry standards; and

WHEREAS, the parties desire to set forth the terms and conditions under which Subhauler will perform transportation and ancillary services for Client.

Scope of Work

Subhauler shall provide motor carriage and related services (including but not limited to pickup, transportation, delivery, and any agreed ancillary services) as described below. Subhauler shall perform services in a commercially reasonable manner, using appropriately qualified personnel and equipment, complying with all applicable laws, regulations and the reasonable instructions provided by Client.

Payment Terms

Client shall pay Subhauler for services rendered in accordance with the agreed compensation. Compensation shall be calculated and paid as follows:

Late payments shall accrue interest at a rate of from the date payment is due until paid. Client shall be responsible for reasonable collection costs, including attorney fees, incurred by Subhauler to recover overdue amounts.

Term and Termination

This Agreement shall commence on Start Date: and continue until End Date: unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon prior written notice of days to the other party. Either party may terminate immediately for material breach that remains uncured after ten (10) days' written notice, or immediately for acts jeopardizing safety or regulatory compliance.

Confidentiality

Each party (the "Recipient") shall keep confidential and not disclose or use any Confidential Information of the other party (the "Discloser") except as necessary to perform under this Agreement. "Confidential Information" includes non-public business information, pricing, customer lists, routing details, and any other information reasonably designated as confidential or that reasonably should be understood to be confidential. Confidentiality obligations shall survive termination for a period of years, except that trade secrets shall remain protected for as long as they qualify as trade secrets under applicable law.

Insurance; Indemnity; Compliance

Subhauler shall maintain at its expense all required liability, cargo, and workers' compensation insurance in commercially reasonable amounts, and shall furnish certificates of insurance upon request. Subhauler shall indemnify, defend and hold harmless Client from and against any claims, losses, liabilities, damages and expenses (including reasonable attorneys' fees) arising out of Subhauler's negligence, willful misconduct, or failure to comply with applicable law.

Subhauler is an independent contractor. Nothing in this Agreement creates an employment, partnership, or joint venture relationship. Subhauler shall be solely responsible for its employees, agents, subcontractors, taxes, and benefits.

Subcontracting and Assignment

Subhauler shall not assign or subcontract the performance of material obligations under this Agreement without Client's prior written consent, which shall not be unreasonably withheld. Any permitted subcontracting shall not relieve Subhauler of its obligations hereunder.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. Venue for any dispute shall be in the state or federal courts located in that State.

Entire Agreement; Amendments

This Agreement, including any attachments or purchase orders expressly incorporated herein, constitutes the entire agreement between the parties concerning the subject matter and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions. No amendment shall be effective unless in writing and signed by both parties.

Notices

Notices required or permitted under this Agreement shall be delivered in writing to the address set forth above or to such other address as either party may designate in writing, and shall be deemed given upon personal delivery, one (1) business day after delivery by overnight courier, or three (3) business days after deposit in the United States mail, postage prepaid.

Signatures

Client Printed Name:

By:

Date:

Subhauler Printed Name:

By:

Date:

Enter text✕

What a Subhauler Services Agreement Is and when it's used

A Subhauler Services Agreement is a written contract in which a primary carrier (the contractor) engages a subhauler or subcontractor to perform all or part of transportation services for freight, equipment, or specialized hauling. The agreement defines scope of work, rates, scheduling, insurance and indemnity, cargo liability, safety and compliance requirements, and termination terms. It allocates responsibility for permits, tolls, and equipment, and it typically requires proof of insurance, motor carrier authority, and compliance with federal and state transportation regulations. Properly drafted agreements reduce operational risk and clarify payment and claims processes.

Why a clear Subhauler Services Agreement matters

A precise agreement reduces ambiguity about responsibilities, limits exposure to cargo and liability claims, and ensures regulatory compliance across jurisdictions. Clear contract terms speed onboarding, simplify billing, and set expectations for performance, safety, and documentation.

Why a clear Subhauler Services Agreement matters

Who typically completes and signs this agreement

The document is completed by contracting parties during onboarding or before first load assignment.

  • Primary carriers and fleet managers who subcontract portions of a haul or route.
  • Independent subhaulers and trucking companies providing capacity under contract.
  • Logistics coordinators, brokers, and procurement teams managing vendor compliance.

It is also reviewed when insurance, scope, or operational conditions change, or when entering new state routes.

Typical signers and their roles

Carrier - Operations Manager

An operations manager signs for the contracting carrier and is responsible for assigning loads, verifying certificates of insurance, and enforcing performance standards. Their signature binds the carrier to payment terms, indemnity clauses, and scope limits for subcontracted work.

Subhauler - Owner/Officer

An owner or authorized officer of the subhauler signs to accept operational terms, liability limits, and insurance requirements. Their signature confirms motor carrier authority, safety compliance, and acceptance of indemnity and hold-harmless provisions.

Essential elements to include in a professional agreement

Include clear, enforceable provisions that address operational, financial, and legal responsibilities. Each element below helps prevent disputes and supports regulatory compliance across state and federal jurisdictions.

Scope of Work

Detailed description of services, routes, equipment specifications, load types, and accepted variations to prevent scope creep and misinterpretation.

Compensation

Rates, payment timing, invoicing requirements, reimbursements for tolls or accessorials, and conditions for withholding or setoffs.

Insurance and Certificates

Minimum liability and cargo limits, required endorsements (additional insured), certificate delivery deadlines, and notification of changes or cancellations.

Compliance

Requirements for motor carrier authority, DOT numbers, drug and alcohol testing, safety ratings, permits, and regulatory reporting.

Indemnity & Liability

Allocation of risk, indemnification scope, limitations of liability, and procedures for handling third-party claims and subrogation.

Termination & Remedies

Cause and convenience termination rights, cure periods, remedies for breach, dispute resolution, and surviving obligations.

Step-by-step completion workflow

Follow these steps to prepare, review, and execute a Subhauler Services Agreement efficiently and in compliance with e-signature rules.

  • 01
    Prepare: Gather certificates of insurance, motor carrier authority, and W-9 or taxpayer ID documentation.
  • 02
    Populate: Fill named parties, scope, rates, insurance minimums, and effective date with exact values.
  • 03
    Review: Have legal or risk teams verify indemnities, limits, and state-specific clauses before sending to subhauler.
  • 04
    Execute: Collect signatures, attach supporting docs, and distribute fully executed copies to all parties.

Typical operational routing for the signed agreement

A standard routing path ensures all stakeholders receive the executed agreement and required supporting documents.

  • Sender Uploads: Sender uploads agreement and attachments to the signing platform or document management system.
  • Place Fields: Add signature, date, and required attachment placeholders for insurance and W-9 documents.
  • Signer Authentication: Signers verify identity via email, SMS code, or higher-level authentication where required.
  • Distribution: Fully executed copies and an audit trail are emailed or stored in the contract repository for both parties.

Recommended digital workflow settings

Configure the signing workflow to minimize friction and retain a complete audit trail while meeting compliance requirements.

Field Configuration
Signer Order Sequential or parallel per operational requirement
Authentication Email by default; SMS or KBA for higher-assurance signers
Attachments Require upload of COI and W-9 before final submission
Retention Store signed PDF + audit trail for minimum retention period

Technical considerations for eSigning and storage

Ensure your platform supports required authentication, audit trails, and common file formats before eSigning.

  • File Formats: PDF and DOCX
  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
  • Security: AES-256 at rest; TLS 1.2/1.3 in transit

Key security and compliance points for electronic execution

Encryption: TLS 1.2/1.3; AES-256
Certifications: SOC 2 Type II; ISO 27001
HIPAA: BAA required
ESIGN/UETA: Federal and state e-sign compliance
Audit Trail: Timestamp, IP, event log
Accessibility: WCAG 2.0 Level AA

Common legal and financial risks to avoid

Insurance Gaps: Uncapped liability
Undefined Scope: Disputed responsibilities
Missing COI: Coverage lapses
Noncompliant Rates: Billing disputes
Late Notice: Denied claims
Improper Signer: Voidable signature

Frequent preparation mistakes and how they cause delays

  • Using vague service descriptions such as 'as needed' that create disputes over whether a job falls under the contract.
  • Accepting verbal rate agreements without written amendments, which complicates invoicing and audit trails.
  • Failing to attach certificates of insurance or motor carrier authority, leading to operational holds or refusal to load.
  • Neglecting to specify jurisdiction and dispute resolution, which increases litigation complexity when parties are in different states.

Key internal deadlines to track when using this agreement

Establish milestones and notification deadlines to ensure continuous compliance and timely payments.

Effective Date:

Agreement becomes operative on the MM/DD/YYYY date entered in the Effective Date field

Insurance Proof Due:

Require COI delivery before first load; update on renewal or cancellation

W-9/Tax Docs:

Collect W-9 or tax ID before first payment to avoid backup withholding

Payment Terms:

Invoices due per stated net terms (for example, Net 30)

Claims Notice:

Require written notice of cargo or damage claims within specified short window (e.g., 5–30 days)

eSignature vendor pricing and compliance snapshot

Select a signing solution that meets security, compliance, and volume needs; the table compares starting price and core features across common providers.

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 Yes, 7-day trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions and practical answers

Answers to common questions about signing, validity, revocation, and recordkeeping for Subhauler Services Agreements prepared and executed electronically.


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