Subcontractor Contract Template (B128)

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Who can use this Subcontract

If you are a main contractor and want a subcontract for  a  specialist trade under a  for work on a construction or engineering project.

 What is the Subcontract for?

 To record the terms agreed between the main contractor and each of their subcontractors on a building or engineering project.  It is a user-friendly, simple agreement in the form of a letter.  All the main essentials of a construction contract are present in the 22 paragraphs. A schedule will be attached detailing the scope of works, subcontract price and payment terms.

 What are the main issues when appointing a subcontractor in the building or engineering industry?

Scope of work:  A clear description of the work to be carried out by the subcontractor, but allowing for flexibility if variations are needed

Start date and completion date to be timed to ensure these allow a margin for the main contractor under their contract with the client

Standard of work  it needs to require at least the standard in the main contract

Co-ordination with other contractors Subcontractors have to fit their work in with others on site so as to avoid delay to other contractors

Main contract compliance: If the subcontractor makes mistakes that involve the main contractor in liability to the client the subcontractor will be held responsible

Variations & Time extensions These can only be given to the extent they are approved by the client under the main contract (if they affect the main contract terms)

Price & Payment  Under English law, ‘pay when paid’ is not allowed in a construction subcontract, but the main contractor should think carefully about the timing of subcontract payments

What detailed terms does this Subcontract Agreement contain?

This four page document contains 22 short paragraphs  covering:

  • the subcontract works
  • price
  • start date and duration
  • regulations
  • plant and facilities
  • inspection
  • damages
  • variations
  • insurance
  • claims
  • goods and materials
  • completion and maintenance
  • payment
  • liquidated damages
  • set-off as a remedy
  • variations
  • time extensions
  • claims
  • indemnity
  • insurance and liability
  • disputes
  • subletting and assignment
  • termination
  • documents and main contract
  • notices

For more information on each of these sections, see our Explanatory Notes  which you will  receive when you download the document from our website.

You call this a Letter Agreement – please explain

An agreement can be in the form of a letter which in this case is addressed to the subcontractor by the main contractor.  When the letter is accepted and signed by the subcontractor, it is an effective binding agreement just as a more formal agreement between Party A and Party B would be.

A letter agreement is more user-friendly than an agreement written in the third person.

For information on signing documents see our Contract Signing page            

When I download the document, can I change it and/or use it more than once?

Yes.  You can buy it once and use it for each of the subcontractors you appoint.  All ContractStore’s templates are in MS Word. As well as filling in the details – names and addresses of the parties, scope of work etc., – you can print it on your company letterhead as well as alter or add to it if you need some special terms.

For more information watch the video on this page of our website or see our FAQs

Legal assistance. 

ContractStore supplies templates and is not a law firm.  But all our templates are written by experienced lawyers, in this case by a construction lawyer.  So, we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.

 And if you want to contact us see our Contacts page


If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form

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