Construction Sub-Contract (Daily rates, With Retention)
This Construction Sub-Contract (Daily rates, 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 payments to be made in
There are retention provisions. If a retention is not required, please use one of our No Retention templates
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 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 agreed daily rates must be inserted here. If the Sub-Contractor is to be paid separately for materials and other expenses, the first option in clause 7.2 should be chosen and the second option deleted. If the Sub-Contractor is not to receive any separate payment for expenses, the second option should be chosen. The Contractor is required to submit payment notices on a monthly basis and to pay the amount stated in the notice within 14 days. If the Contractor fails to serve a payment notice the Sub-Contractor may submit a payment application. A specified percentage of the sum due to the Sub-Contractor (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 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 (Daily rates, With Retention) is