Invoiced Instalments Sub-Contracts
The template sub-contracts in this subfolder are suitable for all kinds of small scale construction projects. They can be used by a builder or main contractor to engage any type of sub-contractor, such as an electrician, plumber, plasterer or bricklayer.
These sub-contracts provide for a payment to be made in instalments on receipt of an invoice from the sub-contractor. Some of the templates make provision for a retention to be held by the contractor. The retained sum is paid to the sub-contractor when the defects liability period has expired, so long as the sub-contractor has remedied any defects.
All of the templates include detailed provisions to ensure the parties understand what is expected of them, thus reducing the scope for disputes. Descriptions of the main contract works and the sub-contract works need to be inserted. A timescale is set out for completion of the works and the agreement lists the day-to-day obligations of the contractor and sub-contractor. The sub-contracts have clauses dealing with payments to the sub-contractor, the sub-contractor’s liability and insurance.
In other subfolders we have construction sub-contracts providing for payment in instalments initiated by the contractor serving a payment notice, templates providing for one-off payment on practical completion of the works and more robust templates for larger projects.
Invoiced Instalments Sub-Contracts is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
My subcontractor wants to be paid in stages against invoices. Which template covers that? +
An invoiced instalments sub-contract. The subcontractor submits an invoice and you pay that instalment, usually with a retention held back until the defects period ends. The forms suit any trade on a small project and set out the scope, the timescale and the day-to-day duties of both parties, so each side knows what is expected before money changes hands.
If I think an invoice is too high, how do I pay the subcontractor less? +
Serve a pay less notice before the final date for payment. The Housing Grants, Construction and Regeneration Act 1996 lets you pay less than the notified sum only if you give a notice stating the amount you will pay and how you worked it out. Miss the deadline and you must pay the full sum, then argue any overpayment separately, so diary the final date for payment on every invoice.
Can the subcontractor stop work if I do not pay an instalment? +
Yes. The Housing Grants, Construction and Regeneration Act 1996 gives a subcontractor who has not been paid the notified sum by the final date the right to suspend performance, after giving at least seven days' written notice of the intention to suspend. They can also recover reasonable costs and an extension of time for the delay. Paying on time avoids handing the subcontractor that leverage.
What are the deadlines for the payment notices on each instalment? +
Two dates drive it. A payment notice stating the sum due must be given within five days of the payment due date, and any pay less notice must be served before the final date for payment. The sub-contract sets the due date and the final date for payment for each instalment. If no valid notice is given, the amount the subcontractor applied for becomes the sum you must pay.
