Construction
Idaho (ID)
Subcontractor Agreement

Idaho Subcontractor Agreement Template | Statutory Compliant

Generate a construction subcontract tailored to Idaho law — with statutory prompt payment deadlines, retainage caps, lien waiver rules, and anti-indemnification protections built in.

Idaho Code Title 45, Chapter 2
Prompt payment & retainage compliant
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Contract Parties

Subcontractor

Project & Schedule

Payment Terms

Total subcontract price for your scope of work.

Idaho rules: Idaho does not cap retainage by statute on private construction; retainage is a matter of negotiation.

Days after GC receives owner payment.

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Idaho (ID)
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Subcontractor Agreement

Construction Subcontract — State of Idaho

This Subcontractor Agreement (the “Agreement”) is made and entered into as of October 5, 2026 by and between [General Contractor Name] (“General Contractor”) and [Subcontractor Name] (“Subcontractor”), governed by Idaho Code Title 45, Chapter 2 and the laws of the State of Idaho.

General Contractor

[General Contractor Name]

Subcontractor

[Subcontractor Name]

Project Owner

—

Project Address

—

Contract Price

[Contract Price]

License #

—

1. Scope of Work

Subcontractor shall furnish all labor, tools, equipment, and materials necessary to complete the agreed scope of work in a good and workmanlike manner, in compliance with all applicable building codes.

2. Payment

GC shall pay Subcontractor within 10 days after receiving payment from the Project Owner. Under Idaho Code § 45-205, the general contractor must pay subcontractors within 7 days after receiving payment from the owner, and if the owner does not pay within 14 days of the invoice, the sub may issue a written demand, after which 1.5% monthly interest and attorney fees are available.

3. Retainage

GC may withhold 10% retainage from each progress payment. Idaho does not cap retainage by statute on private construction; retainage is a matter of negotiation.

4. Lien Waivers

Idaho does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Idaho Code Title 45, Chapter 2.

5. Mechanics Lien Rights Preserved

Idaho requires recording a lien within 90 days after the last day labor or materials were furnished, followed by a lawsuit to foreclose within 6 months of recording. Idaho does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to Lien sent promptly after first furnishing labor or materials.

6. Indemnification

Idaho does not have a specific anti-indemnification statute for construction contracts; broad-form indemnity is generally enforceable if clearly worded. Subcontractors should negotiate express limits.

7. Governing Law

This Agreement is governed by the laws of the State of Idaho, including Idaho Code Title 45, Chapter 2 (Idaho Lien Law) and Prompt Payment provisions in Idaho Code Title 45, Chapter 2, Part 5 (§§ 45-205 et seq.).

[General Contractor Name] — General Contractor

Print Name / Title

[Subcontractor Name] — Subcontractor

Print Name / Title

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Idaho Payment & Retainage Rules

Under Idaho Code § 45-205, the general contractor must pay subcontractors within 7 days after receiving payment from the owner, and if the owner does not pay within 14 days of the invoice, the sub may issue a written demand, after which 1.5% monthly interest and attorney fees are available.

Retainage Cap

Idaho does not cap retainage by statute on private construction; retainage is a matter of negotiation.

Pay-When-Paid

Your agreement states that owner payment is a timing mechanism, not an absolute condition precedent — preserving your right to payment and statutory remedies under Idaho Code Title 45, Chapter 2.

Lien Waivers

Idaho does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Idaho Code Title 45, Chapter 2.

Your Mechanics Lien Rights in Idaho

This agreement expressly preserves your right to record a mechanics lien and serve statutory preliminary notices — no pay-if-paid, pay-when-paid, or lien waiver clause in the document can waive your lien rights beyond payment actually received.

Idaho requires recording a lien within 90 days after the last day labor or materials were furnished, followed by a lawsuit to foreclose within 6 months of recording.

Idaho does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to Lien sent promptly after first furnishing labor or materials.

Deadlines matter: missing a Idaho lien or notice deadline can permanently waive your security interest in the project. Calendar both dates the day you mobilize on site.

Indemnification Limits Under Idaho Law

Idaho does not have a specific anti-indemnification statute for construction contracts; broad-form indemnity is generally enforceable if clearly worded. Subcontractors should negotiate express limits.

Idaho Subcontractor Agreement FAQs

When must a general contractor pay me under Idaho prompt payment law?

Under Idaho Code § 45-205, the general contractor must pay subcontractors within 7 days after receiving payment from the owner, and if the owner does not pay within 14 days of the invoice, the sub may issue a written demand, after which 1.5% monthly interest and attorney fees are available. Your subcontract should mirror these statutory deadlines so that late payments automatically trigger the statutory interest and remedies without negotiation.

How much retainage can a GC legally withhold in Idaho?

Idaho does not cap retainage by statute on private construction; retainage is a matter of negotiation. Your agreement should specify the exact retainage percentage, the release schedule (typically at substantial completion and final completion), and payment of statutory interest on withheld retainage.

Are pay-if-paid clauses enforceable in Idaho subcontracts?

While Idaho has not enacted a blanket statutory ban on pay-if-paid clauses, courts and statutes in most states treat "pay-when-paid" as a reasonable timing provision rather than an absolute condition. Check Idaho Code Title 45, Chapter 2 (Idaho Lien Law) and Prompt Payment provisions in Idaho Code Title 45, Chapter 2, Part 5 (§§ 45-205 et seq.) for specific restrictions, and make sure your subcontract states that payment from the owner is not an absolute condition precedent to your right to be paid.

What lien waiver rules apply in Idaho?

Idaho does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Idaho Code Title 45, Chapter 2. Never sign an unconditional waiver until payment has actually cleared your bank account, and make sure your waiver identifies the specific billing period and amounts to avoid losing lien rights on future work.

Can a Idaho subcontract require me to indemnify the GC for the GC’s own negligence?

Idaho does not have a specific anti-indemnification statute for construction contracts; broad-form indemnity is generally enforceable if clearly worded. Subcontractors should negotiate express limits. Always read the indemnification clause carefully — even in states with anti-indemnity statutes, "broad form" indemnity for joint negligence is typically still enforceable.

How do I preserve my mechanics lien rights in Idaho?

Idaho requires recording a lien within 90 days after the last day labor or materials were furnished, followed by a lawsuit to foreclose within 6 months of recording. Idaho does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to Lien sent promptly after first furnishing labor or materials. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.

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