Construction Subcontractor Agreement is between a main contractor and Subcontractor to come into agreement they need a Construction Subcontractor Agreement Format. Construction Subcontractor Agreement Format is to be filled before start of that project, which will lead to decrease the dispute between Contractor and Subcontractor.
Construction Subcontractor Agreement is of many types that may be based on the Labour rate or with material.
Construction Subcontractor Agreement Format
This Agreement, as negotiated herein, is entered into by and between …………..“Subcontractor” and, ………………………………“Contractor.”
For Electrical work at (Site Name) Subcontractor and the Contractor hereby agree as follows:
Statement of Work:
From time to time, Subcontractor may provide services to Contractor. In addition to the terms and conditions negotiated by the parties for particular projects, Contractor and Subcontractor hereby agree that the terms and conditions of this Subcontractor Agreement (the “Agreement”) shall apply whenever Subcontractor provides services to Contractor.
Defect Liability and Completition of work-
Subcontractor have defect Liability for a period of 1 year(s) (It may change depend upon the time frame between Contractor and Sub contractor) against all defects in materials or workmanship from the date of Completion Letter from Client.
Subcontractor will get the GST Extra/GST Included (Depend upon the agreement terms between both ) on the Bill without taxes produced by the Sub contractor.
TDS Will is deducted as per the income Tax Laws.
Payment Terms and Conditions:
Sub-Contractor will receive the payments after they submit the bill to Contractor and contractor will release 75% within 7 days and rest 25% within 30 days from date of the certified bill from the Engineer In charge.
Advances and Certificates:
Contractor is not liable for any type of advance before work but client may provide material advance of 75%.
Sub-contractor has to provide all the material certificates as required by the Contractor.
All the material to be used for the work should be passed from the Principal Contractor Engineer prior reaching at site.
Sub-contractor has to work accordingly the GFC Drawing provided by the Contractor . If any work done by the Sub Contractor against the drawing then for all the damages and Losses Sub contractor is responsible.
If any work guided by the Principal Contractor which is not in the drawing sub-contractor have to take the written approval from the Contractor.
Security Amount Deduction:
Security Amount 5% of the contractor bill be deducted and that will release at the end of the defect Liability Period.
If work is left in between by the sub-contractor 5% of the contract value will be deducted and Sub contractor have to bear that losses.
Quantity and Rates:
Quantity mentioned in the BOQ may vary increase/decrease based on the GFC Drawing and work executed at Site.
Subcontractor is an independent contractor and not an employee of Contractor.
This Agreement shall be in full force and effect from the date of signing unless canceled in writing by either party with thirty (30) days’ written notice.