Construction Subcontract

This Construction Subcontract is designed for a person or organisation (the Contractor), who is engaged as the main contractor in a construction project, to appoint another independent person or organisation (the Subcontractor) to perform identifiable services within the scope of the main contract. Such services could include supplying materials or executing work e.g. the services of a carpenter, bricklayer or carpet layer. This is a contract suitable for use in commercial construction projects where the construction site is in England, Wales or Scotland.

In industry terms, this document is a Domestic Subcontract: it forms a direct agreement between the Contractor and a named Subcontractor, unlike a Nominated Subcontract where a list of nominated subcontractors is put forward and the architect or supervising officer has the right to make the final choice from that list. A Nominated Subcontract effectively gives the Customer a relationship with the Subcontractor.

Prior to April 6 2007 a Subcontractor was required to hold either a Registration Card or a Subcontractors Tax Certificate in order to get paid. The new Construction Industry Scheme effective from 6 April 2007 resulted in two main changes:

• Identification cards or certificates previously held by the Subcontractor were replaced by a new verification service requiring the contractor to establish the tax payment status of the Subcontractor before making any payments under the new scheme.
• Contractors' practise of using vouchers to account for payments and tax deducted were replaced by monthly returns. The monthly return contains a declaration that the Subcontractors listed are not employed.

Contractors and Subcontractors who were registered under the old CIS scheme do not have to re-register for the new scheme. For full details read the CIS leaflet at the HM Revenue & Customs website.

The Construction Subcontract takes full account of the Housing Grants, Construction & Regeneration Act 1996 and includes the following clauses:

• subcontract works
• contractor obligations
• subcontractor obligations
• fees and payment terms
• defects
• termination
• dispute resolution
• warranties and liabilities
• insurance.

Comprehensive guidance notes are included.

The price for the Construction Subcontract is £50.29 including VAT. You can view a sample document here.

How to order

Choose the format of your Construction Subcontract: Word Template (.dot) or Word Document (.doc) 

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