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New Construction Subcontractor Agreement Templates

February 2014
This month we have added a new folder of Construction Documents to our Property portfolio. The folder contains a selection of sub-contracts that a builder or main contractor can use to engage a sub-contractor. Further documents will be added to the folder over time.

Is there a suitable document for my project?

The sub-contract templates are suitable for small to medium scale construction projects and can be used to appoint any type of sub-contractor: plumbers, electricians, plasterers, tilers, roofers, etc.

Payment mechanisms

The sub-contractor agreements cover various different payment arrangements. The simplest templates provide for payment in one lump sum on completion of the works. Others provide for payment in instalments on production of an invoice from the sub-contractor. In other versions the contractor initiates the payment process by serving a payment notice on the sub-contractor.

The total payment to the sub-contractor can be fixed or based on a daily rate of pay. Expenses can be payable to the sub-contractor in addition to the daily rate or they can be rolled up into the daily rate.

Some of the templates make provision for a retention to be held by the contractor. The retained sum is paid to the sub-contractor when the defects liability period has expired, so long as the sub-contractor has remedied any defects.

Clear, detailed terms

All the sub-contract templates include detailed provisions to ensure the parties understand what is expected of them, thus reducing the scope for disputes. These provisions include descriptions of the main contract works and the sub-contract works, a timescale for completion of the works and lists of obligations of the contractor and sub-contractor. There are also clauses dealing with the sub-contractor’s liability and insurance.

Some of our templates have additional provisions, making them suitable for more complex projects. These Longer Sub-Contracts have clauses dealing with variations to the Works, extensions of time and damages for late completion.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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