CONSTRUCTION SUBCONTRACT

This Agreement is made on [agreementDate] between:

(1) [mainContractorName] of [mainContractorAddress] (the "Main Contractor"); and

(2) [subcontractorName] (UTR [subcontractorUtr]) of [subcontractorAddress] (the "Subcontractor").

1. The Project

1.1. The Project is [projectName] (the "Site").

1.2. The Subcontractor will carry out the following works (the "Subcontract Works"): [scopeOfWork]

1.3. Subcontract Sum: £[subcontractValue] (subject to adjustment for variations, valuations, and CIS deductions).

2. Period

2.1. The Subcontract Works will start on [startDate] and reach practical completion by [completionDate], subject to extension for events beyond the Subcontractor's reasonable control (weather, instructed variations, force majeure).

3. Standard of work

3.1. The Subcontractor will carry out the Subcontract Works:

(a) in a good and workmanlike manner with reasonable skill and care; (b) in accordance with the drawings, specifications, and instructions issued by the Main Contractor; (c) in compliance with the Building Regulations and other applicable legislation; (d) using materials of merchantable quality and fit for purpose, complying with British Standards or equivalents.

4. CDM Regulations

4.1. The Subcontractor will comply with the Construction (Design and Management) Regulations 2015, including providing risk assessments and method statements before starting work, and cooperating with the Principal Designer and Principal Contractor on health and safety matters.

5. Payment

5.1. The valuation date is the last-friday in each month.

5.2. Payment Notice: The Main Contractor will, within 5 days of the valuation date, issue a Payment Notice stating the sum due and the basis of calculation.

5.3. Final Date for Payment: The Main Contractor will pay the sum stated in the Payment Notice (or any Pay Less Notice — clause 5.5) within 30 days of the valuation date.

5.4. Default Notice: If the Main Contractor fails to issue a Payment Notice on time, the Subcontractor may issue a Default Notice stating the sum due. The sum in the Default Notice becomes payable.

5.5. Pay Less Notice: If the Main Contractor intends to pay less than the notified sum, it must serve a Pay Less Notice not less than 7 days before the Final Date for Payment, specifying the reduced sum and the basis.

5.6. CIS deductions: Payments are subject to deduction under the HMRC Construction Industry Scheme at the Subcontractor's rate of [subcontractorCisStatus].

5.7. Late payment: Sums unpaid by the Final Date for Payment attract interest at 8% above the Bank of England base rate (Late Payment of Commercial Debts (Interest) Act 1998).

6. Retention

6.1. Retention of 5% is held by the Main Contractor on each payment.

6.2. Half the retention (i.e. 5% ÷ 2) is released on Practical Completion of the Subcontract Works.

6.3. The remaining half is released at the end of the 6-month Defects Rectification Period, subject to all notified defects having been remedied.

7. Variations

7.1. The Main Contractor may instruct variations in writing. The Subcontractor will price each variation in advance where reasonably possible. The Subcontract Sum is adjusted accordingly.

8. Suspension

8.1. The Subcontractor has the right under section 112 of the Housing Grants, Construction and Regeneration Act 1996 to suspend performance for non-payment of any sum due, on giving 7 days' written notice.

9. Defects

9.1. The Subcontractor will rectify, at its own cost, any defects in the Subcontract Works notified to it during the Defects Rectification Period of 6 months from Practical Completion.

10. Insurance

10.1. The Subcontractor will maintain:

(a) public liability insurance with cover of at least £5,000,000 per occurrence; (b) employer's liability insurance as required by the Employers' Liability (Compulsory Insurance) Act 1969 — minimum £5,000,000; (c) where appropriate, professional indemnity insurance.

10.2. Certificates of insurance to be provided on request.

11. Termination

11.1. Either party may terminate immediately for the other's material breach, insolvency, or persistent failure to perform.

11.2. The Main Contractor may terminate by 14 days' written notice if the Subcontractor fails to remedy a notified breach within that period.

12. Adjudication

12.1. Either party may refer any dispute under this Agreement to adjudication under the Housing Grants, Construction and Regeneration Act 1996. The adjudicator's decision is binding pending final determination by the courts.

13. Governing law

13.1. This Agreement is governed by the law of England and Wales. The courts of England and Wales have exclusive jurisdiction (subject to clause 12).

Signed for and on behalf of [mainContractorName]:

Signature: _________________________ Date: ____________________________

Signed for and on behalf of [subcontractorName]: