Free Subcontractor Agreement Template (Canada, PDF)

Scope of Work and Deliverables for Subcontractors

This section defines what services the subcontractor is expected to perform. It includes location of work, start and end dates, and specific milestones or deadlines. There’s also space to list required quality standards and how progress will be reported - helping both parties stay aligned.

Subcontract Agreement Term and Timeline

Here, the contract states the start date and duration of the agreement. It can be time-bound or based on project completion. This structure is ideal for defining subcontractor timelines in construction, IT, and freelance projects across Canada.

Payment Terms, Milestones, and Reimbursements

The template supports flexible payment structures, such as fixed fees, milestone payments, or installment schedules. It also outlines how subcontractors should invoice, how long clients have to pay, and what happens in the case of late payment or early termination.

Performance Standards and Legal Compliance

Subcontractors agree to deliver services professionally and in line with industry standards and laws. This clause reinforces quality control and ensures compliance with occupational health, safety, and local regulations.

Independent Contractor Relationship

This section confirms that the subcontractor is not an employee, partner, or agent. It helps clarify tax responsibilities, liability, and legal independence - which is essential for risk management and CRA compliance in Canada.

Confidentiality and Data Protection

This clause protects any confidential information shared during the project. It defines what is considered confidential, how long the obligation lasts, and what happens after the contract ends.

Indemnification and Insurance Requirements

The subcontractor agrees to cover any legal claims or damages caused by their actions. It also requires the subcontractor to maintain liability insurance and provide proof of coverage — a must-have in construction and high-risk work environments.

Dispute Resolution and Governing Law

This section sets out a step-by-step process for resolving disagreements - starting with mediation and, if necessary, proceeding to arbitration. It also defines the Canadian province whose laws will govern the contract.

Why Contractors and Subcontractors Need a Clear Agreement

Subcontractor relationships can break down without written terms. This agreement sets clear expectations for scope, payment, quality, and timelines. It protects both contractors and subcontractors from disputes, supports compliance with Canadian labor standards, and ensures every party knows their legal and financial obligations - before the project begins.

What’s Included in This Subcontractor Agreement Template

• Scope of work and project timelines tailored to the job.
• Defined payment structure, billing milestones, and reimbursement rules.
• Service quality standards and legal compliance expectations.
• Independent contractor clause to avoid employee misclassification.
• Confidentiality provisions and post-project data handling.
• Indemnity and required insurance coverage for subcontractors.
• Dispute resolution process and Canadian legal jurisdiction.