Construction Sub-Contracts and Party Walls Agreements
This Construction Sub-Contracts and Party Wall Agreements folder contains a selection of sub-contracts that a builder or main contractor can use to engage a sub-contractor. They have been professionally drafted for use by those involved in construction projects.
They are suitable for any small-scale construction project and for any type of sub-contractor: plumbers, electricians, tilers, roofers, etc. The sub-contracts are divided into subfolders according to their payment arrangements. The agreements in the first subfolder provide for payment in one lump sum on completion of the works. The second subfolder’s agreements provide for payment in instalments on production of an invoice from the sub-contractor. The third subfolder contains templates in which the contractor initiates the payment process by serving a payment notice on the sub-contractor. The fourth subfolder has sub-contractor agreements that are suitable for more complex projects.
There is also a sub-folder providing guidance and examples on what to do when there are works to party walls.
https://simply-docs.co.uk/Construction-Sub-Contracts-and-Party-Walls-Agreements/Party-Wall-Guidance--Document-Templates
The documents are constructed in Word format, and can be customised to meet your requirements. Please click on the links below to view details.
Construction Sub-Contracts and Party Walls Agreements is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
I am a builder taking on a subcontractor. Which sub-contract should I use? +
Choose by how you will pay. This folder has sub-contracts for a single lump sum on completion, for instalments paid against the subcontractor's invoices, and for instalments you trigger by issuing a payment notice, plus longer forms for bigger or more complex jobs. All suit trades such as electricians, plumbers, plasterers and roofers. There is also party wall guidance for work near a neighbour's wall.
Do these sub-contracts have to follow the construction payment rules? +
Yes. A sub-contract between a contractor and a subcontractor is a construction contract under Part II of the Housing Grants, Construction and Regeneration Act 1996, so it must give a clear payment mechanism, payment notices, the right to adjudicate and the right to suspend for non-payment. The residential occupier exemption covers the homeowner's contract with the main builder, not the sub-contract beneath it.
Can I use a pay when paid clause so I only pay the subcontractor once the client pays me? +
No. Pay when paid clauses are banned by the Housing Grants, Construction and Regeneration Act 1996, so a term making payment to your subcontractor conditional on you being paid by the client is ineffective. The only narrow exception is where the third party paying up the chain becomes insolvent. Budget to pay your subcontractor on the contract terms regardless of when the client pays you.
If we fall out over payment, can my subcontractor force the dispute to adjudication? +
Yes. The Housing Grants, Construction and Regeneration Act 1996 gives either party the right to refer a dispute under the sub-contract to adjudication at any time. An adjudicator normally decides within 28 days and the decision binds you until the dispute is finally settled by court, arbitration or agreement. It is a fast, enforceable route, so keep good records of the works and payments.
