Before signing a subcontract, check the legal parties, licence, scope and exclusions, price and payment, variations, time, insurance, risk, termination and how disputes are handled. Business.gov.au says a written contract is safer than relying on a handshake and that you should get help with any terms you do not understand. This checklist is a review aid, not legal clauses, and it does not mean any form is enforceable.[1][2]
Why review before you sign
A contract may involve signed paperwork, emails or a verbal agreement, but proving the terms can be harder without a written record. Business.gov.au recommends writing down arrangements involving significant risk, such as large unpaid amounts, special insurance or confidentiality requirements. Check whether the law for your trade and state requires a written contract before relying on a handshake.
Sources[2]
Pre-signing checklist
The licence check is our recommendation. The other rows follow the Business.gov.au contract guidance.
| Area | Check |
|---|---|
| Parties | Full legal names, addresses, ABNs, ACN where needed, who signs |
| Licence | The licence needed for the work is current and matches the scope, confirmed with the regulator |
| Scope | Work, location, start and end dates, exclusions, drawings or specifications |
| Price and payment | Fee structure, GST included or not, payment triggers, timing, invoice details |
| Variations | Both parties agree, in writing, how to propose, response time |
| Insurance and risk | Required cover, indemnity, defect liability period, notice to remedy |
| Further subcontracting | Whether allowed, and who is responsible |
| Restrictions | Exclusivity or restraint of trade |
| Termination and disputes | Situations, notice, money payable, written notice and mediation steps |
Sources[1]
Standard forms, period contracts and the law
If the contract is a standard form, read every word, cross out unused blank spaces, ask to negotiate and keep a signed copy. With a period contract, check each new job's terms against the original template.
Unfair term rules in the Australian Consumer Law can protect eligible small businesses in standard form contracts, and each state and territory has security of payment laws for building and construction. For employee or contractor questions, see the existing guide.
Review sheet you can copy
Complete this before you sign and keep it with the contract.
SUBCONTRACT REVIEW SHEET Contract: [title, date, other party] Reviewed by: [name, date] [ ] Parties and ABNs checked: [notes] [ ] Licence checked with regulator: [licence no., date] [ ] Scope and exclusions match the quote: [notes] [ ] Price, GST and payment triggers clear: [notes] [ ] Variation process acceptable: [notes] [ ] Insurance and indemnity understood: [notes] [ ] Defects, termination and dispute steps understood: [notes] [ ] Blank spaces filled or crossed out; copy kept: [notes] Questions to raise before signing: [list] Advice taken from: [lawyer, industry group or other, date]
Common questions
- What should be in a subcontractor agreement?
- At a minimum, a simple contract should set out the work or result, how much, when and how payment is made, what makes the contract finished, and how disputes are handled. Larger jobs need more, such as variations, insurance, defects and termination.[1]
Official sources
Checked 16 October 2026. Rules can change; use these sources to check the requirements for your job.
Related guides
- How do trade businesses distinguish employees and contractors?
- When must a tradie pay super for a contractor?
- How do I make a Queensland security of payment claim?
Job workflows for builders.
Put it to work on the next job
Once a subcontract is signed, Leadhand can keep quotes, job photos and GST invoices together on each job so the paperwork matches the work.
See Leadhand job records