Start your 7-day free trial - Full platform access
AI-Powered Subcontractor Agreement Review

Subcontract review.
Before you're bound by it.

Back-to-back LD exposure on a contract you haven't read. Security of Payment deadlines buried in schedules. Variation approval processes that guarantee disputes. Kontractually reviews subcontractor agreements against your playbook before you sign.

No credit card required. First 3 reviews free.

Subcontract review checklist

6 provisions to review in every subcontractor agreement.

Kontractually checks these automatically against your playbook rules.

1
Back-to-back flow-down provisions
Does the subcontract flow down head contract obligations proportionately? Back-to-back clauses can expose a subcontractor to risks from a contract they have never read.
2
Liquidated damages exposure
What is the LD rate? Is it capped? Does the subcontractor's scope justify the exposure? $10,000/day in LDs is common in head contracts - but may be disproportionate to a small subcontract.
3
Payment claim rights and timeframes
Security of Payment Acts in each state impose strict timeframes. Payment claim deadlines, payment schedule response periods, and adjudication rights all need review.
4
Variation approval process
What is the process for variation instructions? Written approval before commencing? Verbal instruction ratification? What if disputed variations are not resolved before project completion?
5
Defects liability period
DLP duration, access for rectification, security held during DLP, and who determines whether a defect exists. These are common sources of post-completion dispute.
6
Scope of works clarity
Is the scope sufficiently defined to determine what is included and excluded? Ambiguous scope is the starting point for most variation disputes.
FAQ

Subcontract review questions.

More questions? Email us.

The three highest-risk areas: back-to-back flow-down (accepting head contract LD exposure on a small scope), Security of Payment Act compliance (missing claim deadlines forfeits statutory rights), and variation approval (verbal instructions that aren't documented lead to payment disputes). Kontractually checks all three against your playbook.

Yes. You can upload both documents separately and review each against the relevant playbook. For back-to-back analysis, reviewing the head contract first helps you understand what the subcontract is flowing down.

State Security of Payment Acts give subcontractors a statutory right to recover progress payments via adjudication. The Acts prescribe the form and timing of payment claims, payment schedule response periods (usually 10-15 business days), and adjudication application windows. Missing any of these timeframes forfeits your rights. Subcontract agreements sometimes attempt to modify these statutory timeframes - not always successfully.

Yes. While construction is the most common use case, professional services subcontracts (IT, consulting, engineering) can also be reviewed. Configure a playbook with the relevant rules for your industry.

Yes. Many head contractors use Kontractually to check their own subcontract templates for consistency and to pre-screen subcontracts before issuing them. This is particularly useful for large projects issuing 10-20 subcontract packages.

Review every subcontract before you sign.

Set up your subcontract playbook in 10 minutes. First 3 reviews free.

Start free trial