New Jersey Subcontractor Agreement Template | Statutory Compliant
Generate a construction subcontract tailored to New Jersey 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.
New Jersey rules: New Jersey 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 New Jersey statutory clauses included — prompt payment, retainage, lien waiver, and indemnification.
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Subcontractor Agreement
Construction Subcontract — State of New Jersey
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 New Jersey Statutes Title 2A, Chapter 44A and the laws of the State of New Jersey.
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 N.J.S.A. 2A:44A-24 (private), the general contractor must pay subcontractors within 10 days after receiving payment from the owner. On public projects under N.J.S.A. 2A:44A-47, the GC must pay subs within 10 days after receiving the construction contract payment.
3. Retainage
GC may withhold 10% retainage from each progress payment. New Jersey does not cap retainage by statute on private construction; retainage is negotiable. On public projects, N.J.S.A. 2A:44A-47 requires retention release within 30 days of final acceptance.
4. Lien Waivers
New Jersey 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 Title 2A, Chapter 44A.
5. Mechanics Lien Rights Preserved
New Jersey requires filing a lien within 90 days after the last work or materials were furnished, followed by foreclosure within 1 year of filing. New Jersey requires a Notice of Furnishing to be served on the owner and GC within 60 days after first furnishing labor or materials to preserve lien rights.
6. Indemnification
New Jersey under N.J.S.A. 2A:44A-34 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 New Jersey, including New Jersey Statutes Title 2A, Chapter 44A (New Jersey Construction Lien Law) and Prompt Pay at N.J.S.A. 2A:44A-24 (private) and N.J.S.A. 2A:44A-47 et seq..
[General Contractor Name] — General Contractor
Print Name / Title
[Subcontractor Name] — Subcontractor
Print Name / Title
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New Jersey Payment & Retainage Rules
Under N.J.S.A. 2A:44A-24 (private), the general contractor must pay subcontractors within 10 days after receiving payment from the owner. On public projects under N.J.S.A. 2A:44A-47, the GC must pay subs within 10 days after receiving the construction contract payment.
Retainage Cap
New Jersey does not cap retainage by statute on private construction; retainage is negotiable. On public projects, N.J.S.A. 2A:44A-47 requires retention release within 30 days of final acceptance.
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 New Jersey Statutes Title 2A, Chapter 44A.
Lien Waivers
New Jersey 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 Title 2A, Chapter 44A.
Your Mechanics Lien Rights in New Jersey
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.
New Jersey requires filing a lien within 90 days after the last work or materials were furnished, followed by foreclosure within 1 year of filing.
New Jersey requires a Notice of Furnishing to be served on the owner and GC within 60 days after first furnishing labor or materials to preserve lien rights.
Deadlines matter: missing a New Jersey 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 New Jersey Law
New Jersey under N.J.S.A. 2A:44A-34 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct.
New Jersey Subcontractor Agreement FAQs
When must a general contractor pay me under New Jersey prompt payment law?
Under N.J.S.A. 2A:44A-24 (private), the general contractor must pay subcontractors within 10 days after receiving payment from the owner. On public projects under N.J.S.A. 2A:44A-47, the GC must pay subs within 10 days after receiving the construction contract payment. 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 New Jersey?
New Jersey does not cap retainage by statute on private construction; retainage is negotiable. On public projects, N.J.S.A. 2A:44A-47 requires retention release within 30 days of final acceptance. 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 New Jersey subcontracts?
While New Jersey 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 New Jersey Statutes Title 2A, Chapter 44A (New Jersey Construction Lien Law) and Prompt Pay at N.J.S.A. 2A:44A-24 (private) and N.J.S.A. 2A:44A-47 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 New Jersey?
New Jersey 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 Title 2A, Chapter 44A. 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 New Jersey subcontract require me to indemnify the GC for the GC’s own negligence?
New Jersey under N.J.S.A. 2A:44A-34 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 New Jersey?
New Jersey requires filing a lien within 90 days after the last work or materials were furnished, followed by foreclosure within 1 year of filing. New Jersey requires a Notice of Furnishing to be served on the owner and GC within 60 days after first furnishing labor or materials to preserve lien rights. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.