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Subcontractor Agreement (Construction) for New Zealand

Subcontractor Agreement (Construction) Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes the contractual relationship between a main contractor and a subcontractor in construction projects. The document aligns with requirements under the Construction Contracts Act 2002 and related legislation, detailing the scope of works, payment terms, performance standards, health and safety obligations, and risk allocation. It includes specific provisions for dispute resolution and payment protection as required by New Zealand construction law, while addressing practical aspects of project delivery, quality standards, and compliance with the Building Act 2004 and Health and Safety at Work Act 2015.

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What is a Subcontractor Agreement (Construction)?

The Subcontractor Agreement (Construction) is a vital document in New Zealand's construction industry, used when a main contractor needs to engage specialized contractors for specific aspects of a construction project. This agreement is designed to comply with New Zealand's legal framework, particularly the Construction Contracts Act 2002, Building Act 2004, and Health and Safety at Work Act 2015. It establishes clear terms for scope of works, payment procedures, performance standards, and risk allocation between parties. The document is essential for projects requiring specialized trade work, complex construction tasks, or when the main contractor needs to delegate specific components of a larger construction project. It includes comprehensive provisions for project management, quality control, dispute resolution, and statutory compliance, while protecting both parties' interests through clear delineation of responsibilities and obligations.

What sections should be included in a Subcontractor Agreement (Construction)?

1. Parties: Identification of the main contractor and subcontractor, including their legal names, company numbers, and addresses

2. Background: Context of the agreement, including reference to the main contract and project details

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Engagement and Scope of Works: Terms of engagement and detailed description of the subcontractor's scope of work

5. Contract Price and Payment: Payment terms, rates, and payment procedures complying with the Construction Contracts Act 2002

6. Time for Performance: Project timeline, milestones, and completion dates

7. Subcontractor's Obligations: General and specific obligations including quality standards, compliance with laws, and coordination requirements

8. Main Contractor's Obligations: Responsibilities of the main contractor including site access, information provision, and coordination

9. Health and Safety: Health and safety requirements and responsibilities under the Health and Safety at Work Act 2015

10. Insurance and Liability: Insurance requirements and allocation of liability between parties

11. Variations: Process for managing changes to the scope of works

12. Defects and Warranties: Defect liability period, warranty terms, and remediation processes

13. Default and Termination: Events of default, termination rights, and consequences of termination

14. Dispute Resolution: Process for resolving disputes as required by the Construction Contracts Act

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

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

1. Performance Security: Requirements for bonds or guarantees, used when additional security is required

2. Intellectual Property: IP rights and obligations, needed when design or creative work is involved

3. Confidentiality: Confidentiality obligations, important for projects involving sensitive information

4. Environmental Requirements: Specific environmental obligations, needed for projects with environmental impacts

5. Indigenous Rights and Cultural Heritage: Obligations regarding Māori cultural heritage and consultation, relevant for projects affecting cultural sites

6. Equipment and Materials: Specific provisions for supply and management of equipment/materials, used when subcontractor provides significant materials

7. Force Majeure: Provisions for unforeseen events, important for longer-term or high-risk projects

What schedules should be included in a Subcontractor Agreement (Construction)?

1. Schedule 1 - Scope of Works: Detailed description of works including specifications and drawings

2. Schedule 2 - Program of Works: Detailed timeline, milestones, and completion dates

3. Schedule 3 - Price and Payment Schedule: Detailed breakdown of prices, rates, and payment milestones

4. Schedule 4 - Site Requirements: Site-specific requirements, access protocols, and working hours

5. Schedule 5 - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts

6. Schedule 6 - Health and Safety Requirements: Specific health and safety procedures and requirements

7. Appendix A - Main Contract Extracts: Relevant excerpts from the main contract affecting subcontractor's work

8. Appendix B - Forms and Templates: Standard forms for variations, payment claims, and other processes

Authors

Alex Denne

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

Jurisdiction

New Zealand

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



















































Clauses








































Relevant Industries

Construction

Infrastructure

Commercial Building

Residential Construction

Industrial Construction

Civil Engineering

Building Services

Electrical Construction

Mechanical Construction

Plumbing and Drainage

Interior Fit-out

Demolition

Earthworks and Excavation

Relevant Teams

Legal

Procurement

Construction Management

Commercial

Operations

Risk and Compliance

Health and Safety

Project Management

Contract Administration

Finance

Site Operations

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Commercial Manager

Quantity Surveyor

Site Manager

Legal Counsel

Procurement Manager

Risk Manager

Health and Safety Manager

Operations Manager

Construction Director

Contracts Manager

Estimator

Project Engineer

Site Supervisor

Compliance Officer

Industries








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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