Longer Form Construction Sub-Contract (Fixed Price, Payment on Notice)
This Longer Form Construction Sub-Contract (Fixed Price, Payment on Notice) 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 construction projects where a more detailed form of Agreement is required
Simpler sub-contract templates can be found in our Lump Sum Payment, Invoiced Instalments and Notified Instalments subfolders.
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 requires the Sub-Contractor to carry out variations to the Works if reasonably requested by the Contractor. The Sub-Contractor is paid for the variations
Clause 8 allows for an extension of time if the Sub-Contractor is delayed for reasons beyond his control.
Clause 9 is akin to a liquidated damages clause. It requires the Sub-Contractor to compensate the Contractor for any loss caused by the Sub-Contractor’s late completion of the works.
Clause 10 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. 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 11 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 13 requires both parties to keep information about the other party confidential. Clause 14 is a “force majeure” clause. A party will not be held liable for a delay that is caused by an “act of
Clause 15 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 16 covers dispute resolution and refers to negotiation, mediation, adjudication
Clause 17 contains miscellaneous standard clauses including provisions for the service of notices.
Clause 18 is a jurisdiction clause. The Schedule needs to be completed by the parties with details of the works and the goods, materials
This Longer Form Construction Sub-Contract (Fixed Price, Payment on Notice) is
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