Main Contractor And Subcontractor Agreement for Hong Kong

Main Contractor And Subcontractor Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes and regulates the contractual relationship between a main contractor and a subcontractor in construction projects. The document sets out the essential terms and conditions including scope of works, payment terms, completion requirements, and risk allocation, while ensuring compliance with Hong Kong's construction regulations, safety standards, and industry practices. It includes detailed provisions for project execution, quality control, dispute resolution, and addresses specific requirements under Hong Kong's construction and contract law framework.

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What is a Main Contractor And Subcontractor Agreement?

The Main Contractor And Subcontractor Agreement is a crucial document in Hong Kong's construction industry, typically used when a main contractor needs to delegate specific portions of a construction project to specialized subcontractors. This agreement is essential for projects of all sizes in Hong Kong, from commercial developments to infrastructure works, and must comply with Hong Kong's construction laws, safety regulations, and industry standards. The document comprehensively covers work scope, payment terms, completion requirements, quality standards, and risk allocation, while incorporating specific provisions required under Hong Kong law. It's particularly important for ensuring clear communication, proper risk management, and efficient project execution in the hierarchical structure of construction projects. The agreement serves as a key reference point for project management and dispute resolution throughout the construction process.

What sections should be included in a Main Contractor And Subcontractor Agreement?

1. Parties: Identification of the Main Contractor and Subcontractor, including their respective registration numbers and registered addresses

2. Background: Context of the main contract, project details, and the basis for the subcontract arrangement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the contract

4. Scope of Works: Detailed description of the subcontract works, including specifications and standards to be met

5. Contract Sum and Payment Terms: Amount payable, payment schedule, payment conditions, and retention provisions

6. Programme and Time for Completion: Project timeline, milestones, and completion requirements

7. Main Contractor's Obligations: Key responsibilities of the main contractor including site access, coordination, and information provision

8. Subcontractor's Obligations: Key responsibilities including work quality, labor provision, and compliance with regulations

9. Variations: Procedures for handling changes to the scope of works and price adjustments

10. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

11. Health, Safety and Environmental Requirements: Safety protocols, environmental compliance, and related responsibilities

12. Insurance and Indemnities: Required insurance coverage and indemnification obligations

13. Default and Termination: Grounds for default, termination procedures, and consequences

14. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration provisions

15. General Provisions: Standard contractual provisions including notices, governing law, and entire agreement

What sections are optional to include in a Main Contractor And Subcontractor Agreement?

1. Performance Bond: Required when additional security for performance is needed, specifying bond requirements and conditions

2. Intellectual Property Rights: Included when the works involve design elements or proprietary methods

3. Confidentiality: Added when sensitive information or trade secrets are involved

4. Parent Company Guarantee: Required when additional financial security is needed from the subcontractor's parent company

5. BIM Requirements: Included when Building Information Modeling is part of the project requirements

6. Materials Supply: Added when specific arrangements for material procurement and supply are needed

7. Liquidated Damages: Included when specific compensation for delay or performance failure needs to be pre-determined

8. Force Majeure: Detailed provisions for handling unforeseen events, particularly relevant in complex or long-term projects

What schedules should be included in a Main Contractor And Subcontractor Agreement?

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings for the subcontract works

2. Schedule 2 - Contract Sum Breakdown: Detailed breakdown of prices, rates, and quantities

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

4. Schedule 4 - Site Rules and Regulations: Specific site requirements, access times, and operational procedures

5. Schedule 5 - Quality Assurance Requirements: Detailed quality standards, testing requirements, and acceptance criteria

6. Schedule 6 - Health and Safety Requirements: Specific safety protocols, PPE requirements, and safety management procedures

7. Schedule 7 - Forms and Certificates: Standard forms for payment applications, variations, and completion certificates

8. Appendix A - Main Contract Provisions: Relevant excerpts from the main contract that affect the subcontract

9. Appendix B - Insurance Requirements: Detailed insurance specifications and coverage requirements

10. Appendix C - Performance Bond Format: Standard format for performance bond when required

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

Hong Kong

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Infrastructure

Civil Engineering

Commercial Development

Residential Development

Industrial Construction

Public Works

Transportation Infrastructure

Healthcare Construction

Educational Facilities

Retail Development

Relevant Teams

Legal

Operations

Commercial

Construction

Project Management

Procurement

Finance

Risk Management

Health and Safety

Quality Control

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contracts Manager

Commercial Director

Project Manager

Site Supervisor

Quantity Surveyor

Legal Counsel

Risk Manager

Operations Director

Construction Director

Procurement Manager

Health and Safety Manager

Quality Control Manager

Finance Director

Commercial Manager

Industries
Construction Industry Council Ordinance (Cap. 587): Establishes the framework for regulating the construction industry in Hong Kong, including registration requirements and industry standards
Buildings Ordinance (Cap. 123): Governs building works and construction standards in Hong Kong, which both main contractors and subcontractors must comply with
Occupational Safety and Health Ordinance (Cap. 509): Sets out workplace safety requirements and obligations for employers and contractors in construction projects
Employment Ordinance (Cap. 57): Governs employment relationships and worker rights, crucial for managing subcontractor relationships and workers' rights
Contracts (Rights of Third Parties) Ordinance (Cap. 623): Affects how third parties may enforce terms of a contract, relevant for multi-party construction projects
Construction Workers Registration Ordinance (Cap. 583): Requires construction workers to be registered, affecting both main contractors and subcontractors' workforce management
Security of Payment Legislation (when enacted): Upcoming legislation to ensure timely payment in construction contracts, particularly relevant for contractor-subcontractor relationships
Minimum Wage Ordinance (Cap. 608): Sets minimum wage requirements that affect labor costs and payment terms in construction contracts
Construction Sites (Safety) Regulations (Cap. 59I): Specific safety requirements for construction sites that both main contractors and subcontractors must follow
Environmental Impact Assessment Ordinance (Cap. 499): Environmental protection requirements that may affect construction methods and responsibilities
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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