Construction Sub-Contract (Fixed Price, No Retention)
This Construction Sub-Contract (Fixed Price, No 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 fixed price for the job, with payments to be made in
There are no retention provisions. If a retention is required, please use one of our With 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 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 price must be inserted here. 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.
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 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
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