Construction
Maryland (MD)
Subcontractor Agreement

Maryland Subcontractor Agreement Template | Statutory Compliant

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

Maryland Code, Real Property Title 9, Subtitle 1
Prompt payment & retainage compliant
Print-ready PDF
Share:

Contract Parties

Subcontractor

Project & Schedule

Payment Terms

Total subcontract price for your scope of work.

Maryland rules: Maryland does not cap retainage by statute on private construction; retainage is negotiated.

Days after GC receives owner payment.

Unlock Full Document

Download a clean, print-ready PDF with all Maryland statutory clauses included — prompt payment, retainage, lien waiver, and indemnification.

Secure checkout via Stripe

Live Document Preview

Maryland (MD)
PREVIEWUNLICENSED

Subcontractor Agreement

Construction Subcontract — State of Maryland

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 Maryland Code, Real Property Title 9, Subtitle 1 and the laws of the State of Maryland.

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 Md. Code, Real Prop. § 14-502, the general contractor must pay subcontractors within 10 days after receiving payment from the owner on private jobs. On public works under State Finance § 10-102, the GC must pay subs within 7 days after receiving owner payment, with interest available on late amounts.

3. Retainage

GC may withhold 10% retainage from each progress payment. Maryland does not cap retainage by statute on private construction; retainage is negotiated. On public works under State Finance § 10-102, retention is typically 10% until 50% completion, then reduced if progress is satisfactory.

4. Lien Waivers

Maryland does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Under Md. Code, Real Prop. Title 9, lien waivers given before payment is received should be conditional to preserve lien rights.

5. Mechanics Lien Rights Preserved

Maryland requires filing a lien within 180 days after the last work or materials were furnished, followed by foreclosure within 1 year of filing. Maryland 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

Maryland under Md. Code, Real Prop. § 9-111 voids construction contract provisions requiring a subcontractor to indemnify the owner or GC for their sole negligence or willful misconduct.

7. Governing Law

This Agreement is governed by the laws of the State of Maryland, including Maryland Code, Real Property Title 9, Subtitle 1 (Maryland Lien Law) and Prompt Pay provisions at Md. Code, State Finance § 10-102 et seq. (public) and Real Prop. § 14-502 (private).

[General Contractor Name] — General Contractor

Print Name / Title

[Subcontractor Name] — Subcontractor

Print Name / Title

This is an on-page preview only. Unlock to download your clean, print-ready PDF.

Secure checkout via Stripe — your form data is saved automatically.

Maryland Payment & Retainage Rules

Under Md. Code, Real Prop. § 14-502, the general contractor must pay subcontractors within 10 days after receiving payment from the owner on private jobs. On public works under State Finance § 10-102, the GC must pay subs within 7 days after receiving owner payment, with interest available on late amounts.

Retainage Cap

Maryland does not cap retainage by statute on private construction; retainage is negotiated. On public works under State Finance § 10-102, retention is typically 10% until 50% completion, then reduced if progress is satisfactory.

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 Maryland Code, Real Property Title 9, Subtitle 1.

Lien Waivers

Maryland does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Under Md. Code, Real Prop. Title 9, lien waivers given before payment is received should be conditional to preserve lien rights.

Your Mechanics Lien Rights in Maryland

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.

Maryland requires filing a lien within 180 days after the last work or materials were furnished, followed by foreclosure within 1 year of filing.

Maryland 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 Maryland 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 Maryland Law

Maryland under Md. Code, Real Prop. § 9-111 voids construction contract provisions requiring a subcontractor to indemnify the owner or GC for their sole negligence or willful misconduct.

Maryland Subcontractor Agreement FAQs

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

Under Md. Code, Real Prop. § 14-502, the general contractor must pay subcontractors within 10 days after receiving payment from the owner on private jobs. On public works under State Finance § 10-102, the GC must pay subs within 7 days after receiving owner payment, with interest available on late amounts. 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 Maryland?

Maryland does not cap retainage by statute on private construction; retainage is negotiated. On public works under State Finance § 10-102, retention is typically 10% until 50% completion, then reduced if progress is satisfactory. 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 Maryland subcontracts?

While Maryland 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 Maryland Code, Real Property Title 9, Subtitle 1 (Maryland Lien Law) and Prompt Pay provisions at Md. Code, State Finance § 10-102 et seq. (public) and Real Prop. § 14-502 (private) 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 Maryland?

Maryland does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Under Md. Code, Real Prop. Title 9, lien waivers given before payment is received should be conditional to preserve lien rights. 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 Maryland subcontract require me to indemnify the GC for the GC’s own negligence?

Maryland under Md. Code, Real Prop. § 9-111 voids construction contract provisions requiring a subcontractor to indemnify the owner or GC for their sole negligence or willful misconduct. 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 Maryland?

Maryland requires filing a lien within 180 days after the last work or materials were furnished, followed by foreclosure within 1 year of filing. Maryland 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.

Customer Reviews