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 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 clause akin to a liquidated damages clause has been included which requires the subcontractor 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 Business . Just £38.50 + VAT provides unlimited downloads from Business for 1 year.

Frequently Asked Questions

My project is bigger and more complex, which subcontract should I use? +

Use the longer form subcontracts. They suit any construction project needing a more detailed agreement, and add provisions the shorter forms leave out: variations to the works, extensions of time, retention and a defects liability period, and compensation for delay. They still cover the works, timescale, obligations, payment, liability and insurance. Payment can be monthly instalments, by the subcontractor's invoice or the contractor's payment notice, at a fixed price or a daily rate. Choose these where the job is substantial.

How do these subcontracts handle variations and extensions of time? +

The longer form templates include clauses for both. A variations clause lets you change the scope of the works during the project in a controlled way, and an extension of time clause adjusts the completion date where delay is justified, for example by a variation or a cause outside the subcontractor's control. That protects both sides: you can change the work, and the subcontractor is not in breach for delay that is not their fault. The shorter forms do not carry this detail.

Can I charge the subcontractor for delay, and will it be enforceable? +

The longer forms include a clause, akin to liquidated damages, requiring the subcontractor to compensate you for losses caused by their delay. To be enforceable it must be a proportionate protection of a legitimate interest, not a penalty: since the Supreme Court decision in Cavendish v Makdessi a clause that is out of all proportion to your real interest can be struck down. So set the delay compensation at a realistic reflection of likely loss, not an inflated deterrent, and it should hold.

What payment and retention options do the longer forms give me? +

More flexibility than the shorter forms. Payment can be in monthly instalments, triggered either by the subcontractor's invoice or by a payment notice from you, and priced as a fixed sum for the job or a daily rate for the subcontractor and their workers. They also provide for retention, released after the defects liability period once defects are remedied. As with all these subcontracts, the payment mechanism must fit the Construction Act rules, which these templates are built to do.

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