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Construction Subcontracts Template for England and Wales

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Key Requirements PROMPT example:

Construction Subcontracts

"Need a Construction Subcontract for a £2.5M mechanical and electrical package on a commercial office development, with strict completion deadlines and liquidated damages provisions, including requirements for performance bond and parent company guarantee."

Document background
Construction Subcontracts are essential documents in the construction industry, used when a main contractor needs to delegate specific portions of construction work to specialized subcontractors. These agreements, governed by English and Welsh law, must comply with the Housing Grants, Construction and Regeneration Act 1996 and other relevant legislation. They typically include detailed specifications of works, payment terms, programming requirements, and quality standards. The document ensures clear allocation of risks and responsibilities while maintaining alignment with the main contract obligations.
Suggested Sections

1. Parties: Identifies and defines the main contractor and subcontractor

2. Background: Context of the main contract and subcontract relationship

3. Definitions: Key terms used throughout the subcontract including relevant legislation references

4. Scope of Works: Detailed description of subcontract works and compliance with Building Regulations

5. Programme: Timing, sequence, and completion dates for the works

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

7. Variations: Process for changes to scope or specifications and their valuation

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

9. Health and Safety: CDM Regulations compliance and general H&S obligations

10. Termination: Grounds and procedures for contract termination

Optional Sections

1. Performance Bond: Requirements for performance security, including bond value and conditions

2. Parent Company Guarantee: Terms of parent company support and guarantee obligations

3. Liquidated Damages: Pre-agreed damages for delay or performance failures

4. Collateral Warranties: Third-party rights and warranty obligations to employer/funders

5. Design Obligations: Design responsibilities and professional indemnity requirements where design is included

Suggested Schedules

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

2. Schedule 2 - Contract Sum and Payment Terms: Breakdown of prices, rates and payment schedule

3. Schedule 3 - Programme: Detailed timeline of works including key milestones

4. Schedule 4 - Insurance Requirements: Required insurance types, levels and specific conditions

5. Schedule 5 - Quality Standards: Applicable quality requirements and standards

6. Schedule 6 - Method Statements: Detailed work procedures and risk assessments

7. Schedule 7 - Forms of Warranty: Template warranty documents for third parties

8. Schedule 8 - Site Rules: Specific site requirements and procedures

Authors

Alex Denne

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

Relevant legal definitions










































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Housing Grants, Construction and Regeneration Act 1996: Key legislation governing construction contracts, including payment provisions, adjudication rights, and payment notice requirements. Amended by Local Democracy, Economic Development and Construction Act 2009.

Late Payment of Commercial Debts (Interest) Act 1998: Governs statutory interest on late payments and compensation for late payments in commercial contracts.

Construction (Design and Management) Regulations 2015: Regulates health and safety in construction, including principal contractor duties and contractor duties.

Supply of Goods and Services Act 1982: Establishes requirements for quality of work, reasonable care and skill, and reasonable time for completion.

Contracts (Rights of Third Parties) Act 1999: Governs third-party rights in contractual relationships.

Defective Premises Act 1972: Sets standards for fitness for habitation and quality standards in construction.

Building Act 1984: Primary legislation governing building works and compliance with building standards.

Health and Safety at Work Act 1974: Establishes general safety obligations in the workplace, including construction sites.

Public Contracts Regulations 2015: Regulates procurement and contracts involving public sector work.

Modern Slavery Act 2015: Requires compliance in supply chain management to prevent modern slavery and human trafficking.

Common Law Principles: Includes principles of contract formation, breach, damages, variations, extensions of time, loss and expense, and termination rights established through case law.

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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