What is a Subcontractor Agreement?

A Subcontractor Agreement is a legally binding contract between the head contractor and the subcontractors.

This contract defines who is responsible for:

  • The work
  • Protection of people and property
  • Control of employees and who pays them
  • Materials and equipment
  • Site cleaning
  • Dispute resolution
  • Programme of works and variations
  • Insurance
  • Licences
  • Progress claims and payments

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Fill in your details and your Business Support Specialist will be in touch within the day to arrange a suitable time to catch up.

Subcontractor or Independent Contractor Agreement?

Subcontractor Agreement

For the construction industry only

Independent Contractor Agreement

For non-construction industries

e.g. truck drivers, freight, cleaners, couriers, sales, contractors.

Independent contractor or employee?

The head contractor must get an independent contractor agreement signed by the independent contractor to formalise and define the relationship between them.

If someone is hired for a few hours, or a couple of days at a time, this does not define them as an independent contractor.

Just because someone works under an ABN, this does not define them as an independent contractor.

A person submitting an invoice for works completed does not define them as an independent contractor.

Contracting arrangements are commonplace, but it does not mean that a particular person can be treated as an independent contractor.

If a worker is legally an employee; having a signed agreement will not override the employment relationship or make the worker an independent contractor.

How does a signed Subcontractor Agreement help?

Clearly sets out the rights and obligations of each party, the head contractor and the sub contractor.

Assists the head contractor, thereby ensuring they are working within the limits of the law in providing a strong, concise foundation for the basis of the business relationship.

Starting work without a signed Subcontractor Agreement means the head contractor’s position is not clear; or even worse, extremely weak.

Greatly reduces the risk of uncertainty.

Why a head contractor requires a signed Subcontractor Agreement.

Firstly,

  • A signed agreement ensures the subcontractor does the work on the site in the manner and time frame required by the head contractor
  • Makes the subcontractor fully liable for all tax obligations of themselves and their employees; as well as any superannuation, leave or work cover entitlements.
  • Ensures the subcontractor is liable for their own insurance and relevant industry licenses as required.
  • Lets the head contractor terminate the subcontractor or their employees for a breach of the contract, due to poor workmanship, unreliability and behavioural issues.

Lastly,

  • The subcontractor is liable for all OH&S issues for themselves and their employees; plus anyone else that is directed to do work by the subcontractor.

Types of Subcontractor Agreement we can supply your business.

Mid-Range

Used by the head contractor for low-medium cost, average-term jobs.

Two versions:

-Multiple projects for a defined period of time (Eg.12 months)

-One-off project.

Comprehensive

Used by Head Contractor for high-cost, long-term jobs.

Must be signed by the Sub Contractor for every new project.

Make sure your business is protected.

Did you want to know more about our building contract services?

We have local Business Support Specialists available throughout the country to assist you with your Terms and Conditions of Trade.

Find your local expert here.

See what our other clients are saying:

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Tamara Vicarey profile picture
Tamara Vicarey
31 August 2026
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New customer who initiated their services for Business T&Cs and found EC Credit Control to be extremely responsive and informative. They guided me through the process and answered any queries we had. We also received support with an outstanding invoice immediately to our initial enquiries.
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Peter Clarke
27 August 2026
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Efficient, once someone ignores requests for payment, handover to these guys. They get the job done.
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Oliver The kid
13 August 2026
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Excellent debt recovery highly recommend!
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Lisa Brown
5 August 2026
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Exceptional customer service from the first point of contact to the first debt collection. The staff are ready and willing to answer questions, offer support and explain further if I have an issue. Highly recommend the team at EC.
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Luke Frost
29 June 2026
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Huge thanks to Terry and the EC Credit Control team. They helped us set up our terms of trade and residential contracts, but what really stands out is the support we received whenever we had questions and also with the initial setup. Always fast, always helpful, and always knowledgeable. Couldn’t ask for better — 5 stars.
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Dolan Evans
4 June 2026
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EC Credit have been amazing throughout the collection process, finding a company to handle debt collection at a reasonable cost is difficult. They proved their professionalism from day one when we first interacted with them and I would strongly recommend their services.
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Chris Bourke
19 May 2026
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I have used EC Credit Control on a number of occasions and have found their service to be extremely prompt and effective in recovering outstanding invoices for my business. Professional, efficient, and easy to deal with. Highly recommended.
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Reality Reviews
14 May 2026
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Some people haven’t even finished the work,damage property in between and then hire a company like this to hunt down money 🤣🤣🤣👌🏻👌🏻this is Gold she’s a cracker this one
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