Subcontractor Contract Form for the United Kingdom

Subcontractor Contract Form Template for England and Wales

A legally binding agreement governed by the laws of England and Wales, designed to establish the terms and conditions between a main contractor and a subcontractor. The document outlines specific works to be performed, payment terms, timeline commitments, and obligations of both parties while ensuring compliance with UK construction legislation, including the Construction Act 1996 and CDM Regulations 2015.

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What is a Subcontractor Contract Form?

The Subcontractor Contract Form is essential for construction and engineering projects in England and Wales where specialist works are subcontracted. This document establishes the legal framework for the relationship between main contractors and subcontractors, covering crucial elements such as scope of works, payment mechanisms, performance standards, and risk allocation. It ensures compliance with key legislation including the Construction Act 1996 and provides clear dispute resolution procedures. The form is particularly vital for projects requiring specialized expertise or where work packages need to be delegated to specialist contractors.

What sections should be included in a Subcontractor Contract Form?

1. Parties: Identifies the contracting parties and their registered addresses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Works: Detailed description of services/works to be performed by the subcontractor

5. Payment Terms: Payment amounts, schedules, mechanisms and compliance with Construction Act requirements

6. Duration and Timeline: Project timeline, completion dates, and contract duration

7. Contractor Obligations: Main contractor's responsibilities and obligations

8. Subcontractor Obligations: Subcontractor's responsibilities including quality standards and compliance

9. Health and Safety: Safety requirements, CDM regulations compliance, and risk management

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

11. Warranties and Indemnities: Guarantees of work quality and indemnification provisions

12. Termination: Conditions and procedures for contract termination

13. Dispute Resolution: Procedures for handling disputes including adjudication provisions

14. General Provisions: Standard boilerplate clauses including notices, governing law, and entire agreement

What sections are optional to include in a Subcontractor Contract Form?

1. Performance Bonds: Financial security requirements for high-value contracts

2. Parent Company Guarantee: Additional financial backing from parent company when working with subsidiary companies

3. Intellectual Property Rights: Ownership and usage rights of created materials when design work is involved

4. Environmental Compliance: Specific environmental obligations for projects with environmental impact

5. Data Protection: GDPR and data protection compliance requirements when personal data is processed

What schedules should be included in a Subcontractor Contract Form?

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

2. Schedule 2 - Pricing Schedule: Detailed breakdown of costs, rates and payment terms

3. Schedule 3 - Programme of Works: Detailed timeline, milestone dates and completion schedule

4. Schedule 4 - Site Rules and Procedures: Specific site requirements and operational procedures

5. Schedule 5 - Key Personnel: Details of key staff and their responsibilities

6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and minimum coverage levels

7. Schedule 7 - Forms and Certificates: Standard forms for applications, certificates and notices

8. Schedule 8 - Quality Standards: Specific quality requirements and standards to be met

Authors

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

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act - Governs construction contracts, payment terms, and dispute resolution mechanisms including adjudication rights

Late Payment of Commercial Debts (Interest) Act 1998: Provides for statutory interest on late payments in commercial transactions

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract to which they are not a direct party

Supply of Goods and Services Act 1982: Sets out implied terms for contracts involving the supply of goods and services

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety in the UK

Employment Rights Act 1996: Establishes fundamental employment rights and responsibilities

Working Time Regulations 1998: Governs maximum working hours, rest breaks, and holiday entitlements

National Minimum Wage Act 1998: Sets out minimum payment requirements for workers

IR35 Regulations: Off-payroll working rules determining tax status of contractors

Construction (Design and Management) Regulations 2015: Specific health and safety requirements for construction projects (CDM)

Building Regulations 2010: Standards for design, construction, and alterations to buildings

Construction Products Regulations 2013: Standards for construction products and materials

Employers' Liability (Compulsory Insurance) Act 1969: Requires employers to maintain insurance against liability for injury or disease to employees

UK GDPR: Data protection and privacy regulations for processing personal information

Data Protection Act 2018: UK's implementation of data protection standards and requirements

Environmental Protection Act 1990: Framework for environmental protection and waste management

Scheme for Construction Contracts: Fallback provisions for construction contracts that don't meet statutory requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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