This Construction Subcontract is designed for a person or organisation, who is engaged as the main contractor in a construction project, to appoint another independent person or organisation to perform identifiable services within the scope of the main contract. For use by a UK based business.
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Up-to-date with April 2015 Construction (Design and Management) (CDM) Regulations
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. It complies with the Local Democracy, Economic Development and Construction Act 2009 ("LDEDC 2009") which came into force on 1 October 2011 in England and Wales and 1 November in 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 (CIS) effective from 6 April 2007 resulted in two main changes:
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.
You can view an online sample of the Construction Subcontract by following this link: View Sample
This Construction Subcontract takes full account of the Housing Grants, Construction & Regeneration Act 1996 and includes the following clauses:
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