Subcontract Agreement
The Subcontract Agreement is a lump sum contract for use between a contractor and a subcontractor for subcontract works. This contract can be used on both commercial and residential projects.
Master Builders has two Subcontract Agreements available – the standard ‘Subcontract Agreement’ and the ‘Subcontract Agreement – Basic’.
The Subcontract Agreement is a comprehensive document that provides flexibility regarding:
- Forms of Security
- Payment reference dates and due dates for payment
- Liquidated damages – not applicable, agreed rates and/or limits applicable
- Delay damages
- Time for submission of Extension of Time claims, and
- Dispute resolution processes.
The Subcontract Agreement can be adjusted easily to align with the requirements of various forms of head contracts including Australia Standards or bespoke contracts. The obligations on both parties are clearly set out and the payment provisions address the common mistake that parties make in terms of providing for the due date for payment. This issue has serious consequences for both parties under the Building Industry Fairness (Security of Payment) Act 2017 (Qld). There is also clarity regarding retention release obligations on both parties which is impacted by the Queensland Building and Construction Commission Act 1991.
The Subcontract Agreement – Basic is a smaller and more compact subcontract that still complies with the recent legislation changes and can be amended, as needed, through special conditions to address differences in the head contract requirements. It allows for progress payments on a weekly, fortnightly or monthly basis but has no built-in flexibility for other payment arrangements. The Subcontract Agreement – Basic suits lower risk subcontracts or smaller work packages.
You can purchase both online via eDocs.
Special conditions addendums
If you have a version of the previous Subcontract Agreement in hardcopy, there are two Special Conditions addendums available to take care of legislative changes.
If you’ve purchased a hardcopy of the previous Subcontract Agreement from us in the past 18 months, download a copy of the relevant Special Conditions addendum below. Follow the instructions to insert correctly within the Special Conditions item of your contract.
Subcontract Agreement addendum - ipso facto special conditions
Period Subcontract
The Period Subcontract is suitable for use when engaging subcontractors who work regularly for the same contractor. It can be used for subcontractors engaged by builders, and for sub-subcontractors engaged by subcontractors. This contract can be used on both commercial and residential projects.
The Period Subcontract applies for an agreed period of time (Subcontract Period) and is an agreement to agree terms that will apply when a later contract is formed (i.e. a separate contract is formed with the Period Subcontract and each Work Order that is issued under the Period Subcontract).
The Work Order gives the parties the freedom to select either an agreed lump sum price or a price calculated using the agreed Schedule of Rates that is set out in the Period Subcontract.
The Period Subcontract is a comprehensive document that provides flexibility regarding:
- Forms of Security
- Payment reference dates and due dates for payment
- Liquidated damages – not applicable, agreed rates and/or limits applicable
- Delay damages
- Time for submission of Extension of Time claims, and
- Dispute resolution processes.
The Period Subcontract can be adjusted easily to align with the requirements of various forms of head contracts including Australia Standards or bespoke contracts. The obligations on both parties are clearly set out and the payment provisions address the common mistake that parties make in terms of providing for the due date for payment.
This issue has serious consequences for both parties under the Building Industry Fairness (Security of Payment) Act 2017 (Qld). There is also clarity regarding retention release obligations on both parties which is impacted by the Queensland Building and Construction Commission Act 1991.
You can purchase the Period Subcontract and Work Order online via eDocs.
Special conditions addendums
If you have a version of the previous Period Subcontract Agreement (prior to 15 July 2019) in hardcopy, there are two Special Conditions addendums available to take care of recent legislative changes.
If you’ve purchased a hardcopy Period Subcontract from us in the past 18 months, download a copy of the relevant Special Conditions addendum below. Follow the instructions to insert correctly within the Special Conditions item of your contract.
Period Subcontract Agreement addendum - ipso facto special conditions
Supporting documents
Throughout the construction period, a range of additional documents must be used to support the subcontract agreement.
Once a contract is in place and work has begun, it is important to document (in writing) any changes to the contract, no matter how minor, including:
Work Order
The Work Order is a companion document to the Period Subcontract to instruct specific work to be carried out. When a Period Subcontract is in place, outlining the time period and agreed rates, Work Orders are used each time agreed work is to be undertaken.
The contractor issues a Work Order to the subcontractor to advise, amongst other things, the address at which the work is to be undertaken, the extent of works and the relevant Period Subcontract to which the Work Order relates.
There are two Work Orders that can be used with the Period Subcontract:
- Work Order – Basic (WO-1)
- Work Order (WO-2).
Under Work Order – Basic (WO-1), the provisions relating to the following clauses do not apply:
- Deposit
- Retention and Security
- Inclement Weather allowance
- Delay Costs
- Prime Cost Items
- Provisional Sum Items.
The time for providing an Extension of Time is set to 5 Business Days.
If one of the above items is intended to apply to the Period Subcontract, Work Order WO-2 should be used.
Under Work Order (WO-2), flexibility is provided for the above items plus many others. It can be adapted to suit large and small head contracts.
Confirmation of Variation/Instruction
A variation is a change to the scope of work outlined in the contract, such as an addition to or reduction in the scope of work that may result in an increase or decrease in the cost (value) of the work.
Master Builders Confirmation of Variation/Instruction is used to confirm variations or instructions that affect the scope of work.
Extension of Time
The Extension of Time form should be used to confirm any extensions of time that will affect the project completion date, due to a delay as allowed for in the contract.
It may be useful to refer to Master Builders construction period calendar, when calculating the anticipated completion date.
Request for Information
As the name suggests, the request for information should be used to request information from the contractor.
Special conditions addendums
Special Conditions addendums for the Period Subcontract Agreement and Subcontract Agreement contracts are now available to take care of legislative changes.
If you’ve purchased a hardcopy Period Subcontract Agreement or Subcontract Agreement from us in the past 18 months, download a copy of the relevant Special Conditions addendum below. Follow the instructions to insert correctly within the Special Conditions item of your contract.
Period Subcontract Agreement addendum - BIF special conditions
Subcontract Agreement addendum - BIF special conditions
Period Subcontract Agreement addendum - ipso facto special conditions
Subcontract Agreement addendum - ipso facto special conditions
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