Subcontracting agreement

The subcontract is a variation of the contract for the provision of construction services. In accordance with it, the general contractor delivers the agreed amount of work to the subcontractor. The conclusion of such contracts helps to optimize construction work and shorten the terms of their implementation.

After performance of works by the subcontractor the customer (the general contractor) checks their completeness and quality according to conditions, after that, in the absence of claims, makes payment.

As a rule, subcontractors are required for performing such works as finishing, communication, design, construction and installation, and some others.

A contract for subcontracting certain types of work is concluded by the parties in a written (simple) form. The right to conclude such contracts is given to the general contractor by the main customer of the works.

Subcontracting agreement, a sample of which can be taken in the accounts of a construction firm or download a form of a standard document on the network, contains a number of mandatory requisites. When preparing such a contract, the following data should be indicated.

First of all, types of works, their cost and terms of fulfillment are prescribed. These points should be indicated with the utmost precision, because the result of the final works and the possibility of putting the object into the agreed period of time can depend on their performance. In the event of conflicts, one's interests in the court can be upheld only taking into account the conditions prescribed in the contract. No oral agreements in disputed situations to resolve the conflict will not be able to influence.

The subcontracting agreement defines the obligations of the subcontractor in full. According to the document, he is obliged to proceed to the execution of work immediately after the general contractor gives him an application in writing with a clear indication of the scope of work and the venue. The subcontractor undertakes to perform the works at the proper level of quality, deliver them on time, and, if necessary, correct all the deficiencies identified exactly within the time frame established by agreement of the parties.

The general contractor is obliged to provide full information on the type of works and their facilities to the subcontractor, in time (usually three days) to check the quality of the work handed over to him and, in the event of a marriage, discuss the procedure for eliminating it, pay for the work according to the terms of the contract. The general contractor has the full right to inspect the work during their implementation.

In turn, the subcontractor has the right to use his materials and tools in the performance of works and involve third parties in the performance. In the event that the general contractor has not fulfilled its obligations to pay for the work on time, it can recover the existing debt or demand penalties for delaying this payment.

The subcontractor is obliged to perform all the design work performed by the design and estimate documentation on his own, perform their individual testing, test the assembled systems and equipment, and eliminate the shortcomings identified during the acceptance of works by the general contractor.

The contract of subcontract can be terminated by mutual consent of the parties, drawing up the corresponding agreement. In addition, termination is possible through the court, if the parties can not reach agreement. The initiator of termination must act in accordance with the claim procedure for settling disputes. Such conflicts can be resolved in pre-trial order, for example, by paying a fine for delay, inadequate quality of work, etc.

Any failure to fulfill the terms of the contract is a violation of the discipline, which may entail the property liability of both the subcontractor and the general contractor if they are guilty of such violation.