Longer Form Construction Sub-Contracts

The sub-contracts in this subfolder are suitable for all types of construction project where a more detailed form of Agreement is required. These Agreements can be used by a builder or main contractor to engage an electrician, plumber, plasterer or bricklayer or any other specialist tradesperson.

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 addition, these 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. There are also clauses dealing with variations to the Works and extensions of time.

A liquidated damages clause has not been included given the difficulties in calculating a genuine pre-estimate of loss for the main contractor. Instead, the sub-contractor is required to compensate the main contractor for losses caused by the sub-contractor’s delay.

The sub-contracts provide for payments to be made in monthly instalments. In some of the templates the sub-contractor submits invoices. In others the contractor issues payment notices. Some of the Agreements set out a fixed price for the job, in others a daily rate is specified for the sub-contractor and his workers.

In other subfolders we have construction sub-contracts providing for payment in instalments on receipt of the sub-contractor’s invoice, templates providing for one-off payment on practical completion of the works and more robust templates for larger projects.

Longer Form Construction Sub-Contracts is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.

Frequently Asked Questions

My project is bigger and more complex. Why use the longer form sub-contract? +

Because it handles the things small forms do not. The longer form adds retention, variations to the works, extensions of time and monthly instalments, on top of the core terms on scope, timescale, payment, liability and insurance. It suits any trade on a larger or more detailed job where changes and delay are likely, and it reduces the room for argument as the work evolves.

How are variations and extra work dealt with? +

Through the variations and extension of time clauses. The longer form lets the contractor instruct changes to the works, provides for those changes to be valued and adjusts the completion date where the change or other qualifying events cause delay. Recording instructions and their effect on time and price in writing is what keeps a variation from becoming a dispute later.

Is there a penalty on the subcontractor if their delay holds up the job? +

Not a fixed penalty. These longer forms deliberately leave out a liquidated damages figure, because a main contractor cannot easily pre-estimate its loss from a subcontractor's delay. Instead the subcontractor must compensate the contractor for the losses actually caused by the delay. That keeps the clause enforceable and ties any claim to real, evidenced loss.

Do the statutory payment rules still apply to the longer form? +

Yes. The longer form is still a construction contract under the Housing Grants, Construction and Regeneration Act 1996, so the payment notice and pay less notice rules, the right to adjudicate at any time and the right to suspend for non-payment all apply. Monthly instalments run either on the subcontractor's invoice or on a contractor payment notice, depending on the version you choose.

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