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Owner Subcontractor Agreement

Owner Subcontractor Agreement Template for England and Wales

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Key Requirements PROMPT example:

Owner Subcontractor Agreement

"I need an Owner Subcontractor Agreement for a residential development project in Manchester, where we'll engage a specialist electrical contractor for a 6-month project starting March 2025, with a contract value of £250,000."

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Document background
The Owner Subcontractor Agreement is a crucial document used when a project owner needs to directly engage specialized contractors for specific aspects of a construction or engineering project. This agreement, governed by English and Welsh law, provides a comprehensive framework for managing the relationship between the owner and subcontractor, including detailed provisions for scope, payment, quality standards, and risk allocation. The document ensures compliance with UK construction legislation, particularly the Construction Act and CDM Regulations, while protecting both parties' interests through clear definition of rights and obligations.
Suggested Sections

1. Parties: Identification and details of the Owner (Employer) and Subcontractor

2. Background: Context of the agreement and relationship to main contract

3. Definitions and Interpretation: Key terms and interpretation rules used throughout the agreement

4. Scope of Works: Detailed description of works to be performed by Subcontractor

5. Payment Terms: Payment amounts, schedule, and mechanisms including payment notices

6. Duration and Programme: Project timeline, key milestones, and completion dates

7. Subcontractor Obligations: Core responsibilities and duties of the Subcontractor

8. Owner Obligations: Core responsibilities and duties of the Owner

9. Insurance and Liability: Required insurance coverage and liability provisions

10. Termination: Circumstances and procedures for contract termination

Optional Sections

1. Performance Security: Bonds or guarantees required when high-value contracts or risk mitigation is necessary

2. Liquidated Damages: Pre-agreed damages for specific breaches when losses can be predicted and quantified

3. Materials and Equipment: Provisions regarding supply and ownership of materials when significant materials or equipment are involved

4. Design Obligations: Design responsibilities and warranties when design services are included in scope

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed specification of works to be performed

2. Schedule 2 - Programme: Detailed timeline and milestone dates

3. Schedule 3 - Payment Schedule: Detailed payment terms, rates and mechanisms

4. Schedule 4 - Site Information: Details about the construction site and conditions

5. Schedule 5 - Required Insurances: Detailed insurance requirements and coverage levels

6. Schedule 6 - Key Personnel: Details of key staff and their roles

7. Appendix A - Forms and Notices: Standard forms for payment, variations, etc.

8. Appendix B - Health and Safety Requirements: Specific H&S requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Housing Grants, Construction and Regeneration Act 1996: Core construction legislation governing payment and adjudication in construction contracts, including provisions for payment mechanisms and dispute resolution

Construction Act 2009: Updates to the 1996 Act, providing additional regulations on payment terms and adjudication procedures in construction contracts

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract, relevant for multi-party construction projects

Supply of Goods and Services Act 1982: Sets out implied terms about quality of service and materials in contracts for goods and services

Late Payment of Commercial Debts (Interest) Act 1998: Provides for statutory interest on late payments in commercial transactions

Health and Safety at Work etc. Act 1974: Primary legislation for workplace health and safety, setting out general duties of employers and contractors

Construction (Design and Management) Regulations 2015: Specific health and safety regulations for construction projects, including duties of all parties involved

Working Time Regulations 1998: Governs working hours, rest periods and annual leave entitlements

Employment Rights Act 1996: Sets out basic employment rights relevant to subcontractor relationships and worker status

IR35 Regulations: Tax legislation affecting contractors and sub-contractors, determining employment status for tax purposes

Agency Workers Regulations 2010: Protects rights of agency workers, may be relevant if using agency subcontractors

Employers' Liability (Compulsory Insurance) Act 1969: Requires employers to maintain insurance against liability for injury or disease to employees

Third Parties (Rights Against Insurers) Act 2010: Governs transfer of insured rights to third parties, relevant for insurance and liability provisions

Environmental Protection Act 1990: Sets out duties regarding environmental protection and waste management on construction sites

Control of Pollution Act 1974: Regulates pollution from construction activities including noise and waste

Building Act 1984: Primary legislation governing building works and regulations

Building Regulations 2010: Detailed technical requirements for construction works

The Scheme for Construction Contracts (England and Wales) Regulations 1998: Provides default payment and adjudication provisions for construction contracts

Public Contracts Regulations 2015: Governs procurement and contracting in public sector projects

UK GDPR: Regulates the processing and handling of personal data

Data Protection Act 2018: UK's implementation of data protection requirements, working alongside UK GDPR

Arbitration Act 1996: Framework for arbitration as a form of dispute resolution

Civil Procedure Rules: Procedural rules for civil litigation in England and Wales

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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