Construction Sub-Contract (Fixed Lump Sum, With Retention)
This Construction Sub-Contract (Fixed Lump Sum, With Retention) can be used by a builder to appoint any kind of construction sub-contractor, such as a plumber, electrician, plasterer, bricklayer etc. The Agreement is suitable for all
This construction sub-contract now includes General Data Protection Regulation (GDPR)-compliant clauses (see under “Clause 9” below).
The Agreement provides for a one-off payment to be made on completion of the works. There are retention provisions. If a retention is not required, please use one of our No Retention templates.
If payment is to be made in
Clause 1 contains definitions. Brief details of the Main Contract need to be given. A description of the sub-contract Works should be inserted in the Schedule.
Clause 2 covers engagement of the Sub-Contractor. This clause confirms the self-employed status of the Sub-Contractor and refers to the Construction Industry Scheme (CIS). This is
Clause 3 deals with timescales. Dates can be inserted for the Works to start and finish. There is a requirement for the Sub-Contractor to rectify any defects that are notified to him within 3 months of practical completion.
Clause 4 sets out the Sub-Contractor’s obligations. These include carrying out the Works in a proper manner, provision of tools and materials and compliance with laws and regulations.
Clause 5 contains the Contractor’s obligations. These cover providing access to the site, providing tools and materials (optional) and compliance with the Construction, Design &
Clause 6 relates to liability, indemnity
Clause 7 covers payment. The fixed price must be inserted here. The Sub-Contractor is required to submit an invoice after practical completion of the Works. A specified percentage of the price (e.g. 5%) is retained until four months after practical completion or one month after any defects have been remedied.
Clause 8 deals with non-competition and non-solicitation. These optional provisions protect the Contractor by restricting the Sub-Contractor's ability to provide similar services for competitors and by preventing the Sub-Contractor from "poaching" the Contractor's staff or clients. Both restrictions are subject to optional limitations including time and geographical radius.
Clause 9 is compliant with the GDPR. One or both sub-clauses in square brackets should be retained, if and as appropriate, where there is to be any data processing (sub-clause 9.6) and/or data sharing (sub-clause 9.5). However, if there is to be data processing but you prefer not to have to prepare a separate Data Processing Agreement (referred to in sub-clause 9.6), you may, in place of 9.6, insert our data processing clauses numbered 1.2 – 1.8 and Schedule: you will find them by clicking here.
Clause 10 requires both parties to keep information about the other party confidential.
Clause 11 is a “force majeure” clause. A party will not be held liable for a delay that is caused by an “act of
Clause 12 deals with termination of the Agreement. Either party can terminate if the other is in breach of the agreement or becomes insolvent. The Agreement terminates automatically if the Main Contract is terminated. There is an optional clause allowing no-fault termination by giving 28 days’ notice in writing.
Clause 13 covers dispute resolution and refers to negotiation, mediation, adjudication
Clause 14 contains miscellaneous standard clauses including provisions for the service of notices.
Clause 15 is a jurisdiction clause. The Schedule needs to be completed by the parties with details of the works and the goods, materials
This Construction Sub-Contract (Fixed Lump Sum, With Retention) is
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