Subcontractor construction contract documents

What should be included in contract documents?

In our previous article we discussed What to include in Subcontractor pricing documentation​. This followed a previous article Subcontractor scope of works  where we looked at how important it was to get the scope of works right before asking subcontractors to price work.

Subcontractors are critical to the success of most construction projects. Regrettably many problems arise with subcontractors. Many of these problems occur even before the subcontractor starts work. Often the wrong subcontractor is selected, or the subcontractor isn't given all the correct information to price the work. Then there are problems with the contract document which makes it difficult to administer the subcontractor, and flaws in the documents which even give rise to claims from the subcontractor. 

In this article we consider the actual contract document that you use with construction subcontractors.

Are long contract documents necessary?

• The subcontract document is a legally binding contract between the subcontractor and contractor.
• If this document is poorly worded, inconsistent or incomplete, it can lead to complications with the management of the Subcontractor.
• The contract must be appropriate for the type of work
• The contract doesn’t have to be dozens of pages long.
• The contract should not be one-sided or place undue risks on the subcontractor
• Contracts must avoid confusing and ambiguous language and there should be no contradictory clauses.
• Contract documents should be drafted by those familiar with the industry and who understand the complexities of the project.
• The contract must include the provisions, specifications and terms from the main contract which apply to the subcontractor.
• It must exclude non-applicable items from the main contract – so avoid cut and paste.
• The contract document in general should include documentation the subcontractor priced.
• The contract document must include all changes that were negotiated and agreed during the pricing stage.
• The document should stipulate the subcontractor’s obligations to be fulfilled before final payment is released

In our next article Subcontractor contract documents part 2 we consider what should be included in the subcontractor's contract document.

Other useful articles
​Avoiding disputes on your construction project.
Understanding the real cost of delays on your construction project
Selecting The Right Contractors and Subcontractors for Your Construction Project

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