In the construction sector, seamless collaboration between contractors and subcontractors is paramount to the success of any project.
But the partnership between main contractors and subcontractors isn’t always smooth sailing, and ensuring that everything goes to plan often requires more than just a handshake. This is where a subcontractor agreement comes in. And if you don’t have one already, we’ve got a simple template you can use to get started.
Why the need for subcontractor agreements?
Before jumping into the template it’s worth noting some of the reasons a document like this is needed.
- Clarity and precision: subcontractor agreements provide a detailed structure of what needs to be done, leaving no room for ambiguities. Whether it’s a subcontractor service agreement or a broader framework, the objective remains the same: clear communication of roles and responsibilities.
- Protection and assurance: The agreement ensures both parties are shielded from potential pitfalls by defining liabilities, payment terms, and mutual obligations.
These agreements make work run smoother for both you and your subcontractors, and act as legal protection for both parties. Without one, resolving conflicts can be extremely difficult. With a subcontractor agreement conflicts are both less likely to happen in the first place, as well as being easier to resolve. So, without further ado, let’s get into the template.
Simply copy and paste the template below into your own document and fill in the sections needed.
Related Reading: 5 ways to better manage subcontractors with PlanRadar
Your UK subcontractor agreement template
Construction Subcontractor Agreement
This Agreement is made on [Date], between [Primary Contractor’s Full Legal Name], registered in England and Wales under company number [Company Number], with its registered office at [Primary Contractor’s Address] (“Contractor”), and [Subcontractor’s Full Legal Name], registered in England and Wales under company number [Company Number], with its registered office at [Subcontractor’s Address] (“Subcontractor”).
- “Works” refers to the tasks detailed in Schedule Part 1.
- “Goods and Materials” refer to items detailed in Schedule Parts 2 and 3.
- “Tools” refers to equipment detailed in Schedule Part 4.
2. Engagement of Subcontractor
The Contractor engages the Subcontractor to perform the Works, and the Subcontractor agrees to perform them according to this Agreement’s terms.
The Subcontractor agrees to start the Works on [Start Date] and complete them by [End Date].
4. Subcontractor’s Obligations
The Subcontractor shall:
- Deliver quality and timely Works.
- Provide Goods and Materials as listed in Schedule Part 2.
- Correct defects identified within [e.g., “12 months”] of completion.
5. Contractor’s Obligations
The Contractor shall:
- Provide Goods and Materials as listed in Schedule Part 3.
- Supply Tools as listed in Schedule Part 4.
- Provide necessary assistance for the timely completion of Works.
6. Liability, Indemnity and Insurance
The Subcontractor will indemnify the Contractor against losses arising from negligence or breach. The Subcontractor shall maintain appropriate insurance, providing evidence upon request.
7. Payments to the Sub-Contractor
Payments shall be made within [e.g., “30 days”] of an approved invoice. Retention may be held by the Contractor and released upon satisfactory completion.
8. Non-exclusivity, Non-competition and Non-solicitation
This Agreement is non-exclusive. The Subcontractor shall not solicit the Contractor’s clients or staff or compete unfairly for the duration of this Agreement and for [e.g., “12 months”] thereafter.
9. Data Protection: Sharing and Processing
Both parties shall comply with applicable data protection laws. The Subcontractor shall not share data without the Contractor’s consent.
Both parties agree to treat all proprietary information as confidential.
11. Force Majeure
Neither party shall be liable for delays caused by unforeseeable and uncontrollable events.
Either party may terminate with [e.g., “30 days”] notice for breach. Immediate termination may occur if a party becomes insolvent or violates confidentiality.
13. Dispute Resolution
Parties shall attempt amicable resolution. Unresolved disputes shall undergo mediation, and if still unresolved, litigation.
14. Status of the Subcontractor
The Subcontractor operates as an independent entity, not an employee.
Any changes to this Agreement must be in writing. Failure to enforce any provision doesn’t waive the right to enforce it later.
16. Governing Law and Jurisdiction
This Agreement is governed by the laws of England and Wales and is subject to its jurisdiction.
- Part 1 – Description of Works: [Details]
- Part 2 – List of Goods and Materials supplied by Subcontractor: [Details]
- Part 3 – List of Goods and Materials supplied by Contractor: [Details]
- Part 4 – List of Tools etc supplied by Contractor: [Details]
IN WITNESS WHEREOF, both parties have executed this Agreement on the date first above written.
[Primary Contractor’s Signature] [Subcontractor’s Signature]
Related reading: The true cost of poor communication with subcontractors
Something to consider
Hopefully this template will act as a useful starting point for you to create a subcontractor agreement that works for you. We do recommend that you ask a legal professional to look over your finished agreement before sending it out to any subcontractors.