Montana Subcontractor Agreement Template | Statutory Compliant
Generate a construction subcontract tailored to Montana law — with statutory prompt payment deadlines, retainage caps, lien waiver rules, and anti-indemnification protections built in.
Contract Parties
Subcontractor
Project & Schedule
Payment Terms
Total subcontract price for your scope of work.
Montana rules: Montana does not cap retainage by statute on private construction; retainage is negotiable.
Days after GC receives owner payment.
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Download a clean, print-ready PDF with all Montana statutory clauses included — prompt payment, retainage, lien waiver, and indemnification.
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Subcontractor Agreement
Construction Subcontract — State of Montana
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 Montana Code Annotated Title 71, Chapter 3 and the laws of the State of Montana.
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 Mont. Code § 18-2-503 (public), the general contractor must pay subcontractors within 15 days after receiving payment from the owner. On private jobs, payment terms are governed by contract, though a pay-if-paid clause is generally unenforceable under Montana case law.
3. Retainage
GC may withhold 10% retainage from each progress payment. Montana does not cap retainage by statute on private construction; retainage is negotiable. On public jobs under Mont. Code § 18-2-501, retention cannot exceed 5%.
4. Lien Waivers
Montana does not require statutory lien waiver forms; waivers are encodeable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Title 71, Chapter 3.
5. Mechanics Lien Rights Preserved
Montana requires filing a lien within 8 months after the last work or materials were furnished, followed by foreclosure within 1 year of filing. Montana does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to lien.
6. Indemnification
Montana under Mont. Code § 28-1-1609 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct.
7. Governing Law
This Agreement is governed by the laws of the State of Montana, including Montana Code Annotated Title 71, Chapter 3 (Montana Lien Law) and Prompt Pay at Mont. Code. § 18-2-501 et seq. (public) and Title 71 Chapter 3 (private).
[General Contractor Name] — General Contractor
Print Name / Title
[Subcontractor Name] — Subcontractor
Print Name / Title
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Montana Payment & Retainage Rules
Under Mont. Code § 18-2-503 (public), the general contractor must pay subcontractors within 15 days after receiving payment from the owner. On private jobs, payment terms are governed by contract, though a pay-if-paid clause is generally unenforceable under Montana case law.
Retainage Cap
Montana does not cap retainage by statute on private construction; retainage is negotiable. On public jobs under Mont. Code § 18-2-501, retention cannot exceed 5%.
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 Montana Code Annotated Title 71, Chapter 3.
Lien Waivers
Montana does not require statutory lien waiver forms; waivers are encodeable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Title 71, Chapter 3.
Your Mechanics Lien Rights in Montana
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.
Montana requires filing a lien within 8 months after the last work or materials were furnished, followed by foreclosure within 1 year of filing.
Montana does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to lien.
Deadlines matter: missing a Montana 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 Montana Law
Montana under Mont. Code § 28-1-1609 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct.
Montana Subcontractor Agreement FAQs
When must a general contractor pay me under Montana prompt payment law?
Under Mont. Code § 18-2-503 (public), the general contractor must pay subcontractors within 15 days after receiving payment from the owner. On private jobs, payment terms are governed by contract, though a pay-if-paid clause is generally unenforceable under Montana case law. 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 Montana?
Montana does not cap retainage by statute on private construction; retainage is negotiable. On public jobs under Mont. Code § 18-2-501, retention cannot exceed 5%. 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 Montana subcontracts?
Your state restricts pay-if-paid clauses as described above.
What lien waiver rules apply in Montana?
Montana does not require statutory lien waiver forms; waivers are encodeable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Title 71, Chapter 3. 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 Montana subcontract require me to indemnify the GC for the GC’s own negligence?
Montana under Mont. Code § 28-1-1609 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s 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 Montana?
Montana requires filing a lien within 8 months after the last work or materials were furnished, followed by foreclosure within 1 year of filing. Montana does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to lien. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.