The Contractor Subcontractor Agreement is a crucial document in Hong Kong's construction industry that formalizes the relationship between a main contractor and their subcontractors. It is used when a main contractor needs to delegate specific portions of their contracted works to specialized subcontractors while maintaining overall project responsibility. The agreement must comply with Hong Kong's construction regulations, employment laws, and safety standards while protecting both parties' interests. It typically includes detailed specifications of works, payment mechanisms, performance standards, and risk allocation provisions. This document is particularly important given Hong Kong's complex building requirements and multi-tiered construction project structures, where clear delineation of responsibilities and obligations is essential for project success.
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1. Parties: Identification of the main contractor and subcontractor, including their respective registration/license numbers and registered addresses
2. Background: Context of the main contract, project details, and the basis for the subcontracting arrangement
3. Definitions: Key terms used throughout the agreement, including project-specific terminology and technical definitions
4. Scope of Works: Detailed description of the subcontracted works, including specific deliverables and exclusions
5. Contract Sum and Payment Terms: Agreed price, payment schedule, retention provisions, and payment certification process
6. Time for Completion: Project timeline, key milestones, and provisions for extensions of time
7. Subcontractor's Obligations: General and specific obligations, including compliance with standards, regulations, and main contractor's instructions
8. Main Contractor's Obligations: Responsibilities of the main contractor, including site access, coordination, and information provision
9. Quality and Workmanship: Required standards, inspection procedures, and defect rectification requirements
10. Health and Safety: Safety requirements, compliance with regulations, and reporting procedures
11. Insurance and Indemnity: Required insurance coverage and indemnification provisions
12. Variations: Process for handling changes to the scope of works and price adjustments
13. Suspension and Termination: Circumstances and procedures for suspension or termination of the agreement
14. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration provisions
15. General Provisions: Standard contractual clauses including notices, assignment, and governing law
1. Performance Bond: Requirements for performance security, used for high-value or high-risk subcontracts
2. Intellectual Property Rights: IP ownership and licensing provisions, important for design or technology-intensive works
3. Confidentiality: Non-disclosure obligations, required for projects involving sensitive information
4. Environmental Protection: Specific environmental compliance requirements, important for projects with environmental impact
5. Materials and Equipment: Detailed provisions for supply and management of materials, relevant for supply-and-install subcontracts
6. Liquidated Damages: Pre-determined damages for delay or performance failures, used when specific losses can be calculated
7. Back-to-Back Provisions: Specific clauses flowing down from the main contract, important for complex project structures
8. Force Majeure: Provisions for unforeseen events, particularly relevant in long-term or high-risk projects
9. Warranties: Extended warranty provisions beyond defects liability period, important for specialized works
10. Labor Requirements: Specific labor-related obligations, important for labor-intensive works
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings for the subcontracted works
2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract sum, including unit rates and quantities
3. Schedule 3 - Program of Works: Detailed timeline showing key dates, dependencies, and milestones
4. Schedule 4 - Key Personnel: List of key personnel from both parties with their roles and responsibilities
5. Schedule 5 - Required Insurances: Detailed insurance requirements including types, coverage amounts, and special conditions
6. Schedule 6 - Forms and Certificates: Standard forms for payment applications, variations, and completion certificates
7. Schedule 7 - Quality Assurance Requirements: Specific quality control procedures and standards
8. Appendix A - Site Rules and Regulations: Main contractor's site-specific rules and safety requirements
9. Appendix B - Main Contract Extracts: Relevant excerpts from the main contract affecting the subcontractor's works
10. Appendix C - Technical Submittals: Required technical submissions and approval procedures
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Civil Engineering
Building Services
Infrastructure Development
Property Development
Industrial Construction
Commercial Construction
Residential Construction
Marine Construction
Railway Construction
Public Works
Interior Fit-out
Relevant Teams
Legal
Operations
Commercial
Procurement
Project Management
Construction
Finance
Risk Management
Compliance
Health and Safety
Technical Services
Quality Assurance
Relevant Roles
Project Director
Construction Manager
Contract Manager
Commercial Manager
Project Manager
Site Supervisor
Quantity Surveyor
Legal Counsel
Risk Manager
Procurement Manager
Technical Director
Operations Manager
Chief Engineer
Compliance Officer
Safety Manager
Finance Director
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