Subcontractor Agreements

With many construction projects, sub-contracting is a necessary and important part of the project.

Our team of specialist lawyers draft, negotiate and finalise sub-contracting arrangements and advise on issues arising on sub-contracts, including disputes. We advise employers, main contractors and also sub-contractor clients.

Our experience and sector focus results in clear, practical, cost-effective advice on the most important issues.

Employer risks

The employer should review sub-contracting arrangements to ensure they support and align with the main contract. By way of example, the employer will want to ensure that the sub-contracting costings align, and relevant performance requirements match those in the main contract.

Main contractor risks with sub-contracts

From the main contractor's perspective, it will be important to avoid a poor ‘pass-down’ of key commercial obligations, gaps in liability, and/or otherwise failing to ensure there is a sensible ‘back-to-back’ arrangement with the main contract.

The main contractor will want to ensure there are no gaps between its obligations under the main contract and the sub-contractor's obligations under the sub-contract. If there are any problems the risk is likely to sit with the main contractor.

Legal protection for sub-contractors

We also regularly advise sub-contractors on the inherent risks which may include :-

• Sub-contractor’s obligations

• Payment terms.

• Time

• Dispute resolution

• Termination rights -

• Insurance - the types and levels of insurance required.