Company Subcontractor Agreements

Main contractors, whether by default or by necessity, will sometimes need to employ the services of subcontractors.

These Company Subcontractor Agreements will give main contractors considerable flexibility in rendering their services, allowing for an overall increase in working capacity and, in many cases, in specialist knowledge or skills. Especially relevant in the construction industry, but also valuable in many other sectors, including IT services, Company Subcontractor Agreements allow main contractors to engage a company which provides additional workers on a short (or fixed) term basis.

These forms of agreement are designed to be used where the subcontractor is to be a company, but there are also Sole Trader Subcontractor Agreements that are designed to be used where the sub-contractor is to be a self-employed individual.

A key consideration to bear in mind is the status of the subcontractor and any workers engaged by the subcontractor. Each of these forms aims to minimize the risk that IR35, agency worker or other legislation will have an adverse impact on the main contractor, its client, the subcontractor company and the individual(s) engaged by the subcontractor to carry out the work for the main contractor.

In each case, the information page accompanying each form explains that use of that (or any other) form cannot actually remove that risk. Therefore, professional advice should be sought. The advice will need to consider the content of the form to be used together with all of the circumstances and arrangements relating to the work, the client, the main contractor, the subcontractor company and the individuals(s) engaged by the subcontractor.

A further key consideration is that the agreement between the main contractor and their own client must permit subcontracting.

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