Construction Subcontractor Agreement for the United Kingdom

Construction Subcontractor Agreement Template for England and Wales

A legally binding agreement governed by English and Welsh law that establishes the terms and conditions between a main contractor and a subcontractor for specific construction works. The agreement defines the scope of works, payment terms, programme requirements, and responsibilities while ensuring compliance with UK construction legislation, including the Construction Act 1996 and CDM Regulations 2015. It includes provisions for health and safety, insurance requirements, and dispute resolution mechanisms.

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What is a Construction Subcontractor Agreement?

A Construction Subcontractor Agreement is essential when a main contractor needs to delegate specific aspects of a construction project to specialized contractors. This agreement, governed by English and Welsh law, establishes clear contractual relationships, defines responsibilities, and ensures compliance with UK construction regulations. It typically includes detailed specifications of works, payment mechanisms, programme requirements, and quality standards. The agreement protects both parties' interests while maintaining alignment with the main contract requirements and relevant legislation such as the Construction Act 1996 and CDM Regulations 2015.

What sections should be included in a Construction Subcontractor Agreement?

1. Parties: Identification and details of the contractor and subcontractor

2. Background: Context of the agreement and relationship to main contract

3. Definitions: Key terms used throughout the agreement

4. Scope of Works: Detailed description of subcontractor's obligations

5. Payment Terms: Payment amounts, schedule, and mechanisms including provisions required by Construction Act 1996

6. Programme: Timing and sequence of works

7. Health and Safety: Safety obligations and requirements under CDM Regulations 2015

8. Insurance and Liability: Required insurance coverage and liability provisions

9. Termination: Grounds and procedures for contract termination

What sections are optional to include in a Construction Subcontractor Agreement?

1. Design Responsibilities: Include when subcontractor has design obligations under design and build subcontracts

2. Materials and Equipment: Provisions for supply and approval of materials when subcontractor supplies materials

3. Performance Security: Requirements for bonds or guarantees for high-value or high-risk works

What schedules should be included in a Construction Subcontractor Agreement?

1. Schedule 1 - Scope of Works: Detailed specification of works to be performed

2. Schedule 2 - Programme: Detailed timeline and milestones

3. Schedule 3 - Rates and Prices: Detailed breakdown of costs and rates

4. Schedule 4 - Insurance Requirements: Specific insurance requirements and levels

5. Schedule 5 - Site Rules: Specific site requirements and procedures

6. Appendix 1 - Form of Payment Application: Standard form for payment applications

7. Appendix 2 - Form of Collateral Warranty: Standard warranty form if required by the main contractor or employer

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Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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What is a Construction Subcontractor Agreement?

What sections should be included in a Construction Subcontractor Agreement?

What sections are optional to include in a Construction Subcontractor Agreement?

What schedules should be included in a Construction Subcontractor Agreement?

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