SUBCONTRACTOR AGREEMENT
Important notice
This fictional example is a general project sample and is not legal advice or a universally enforceable construction form. The contractor and subcontractor must check the law governing the site, licensing, health and safety, employment status, tax withholding, insurance, payment adjudication, permits and any main contract flow-down terms. Any required statutory notices, bonds, witnessing or electronic-signature rules must be addressed before work starts.
1. Parties and project
This Agreement is made on 15 September 2026 between Cedarline Build Ltd, of 6 Station Approach, Reading RG1 1LT, the Contractor, and Atlas Electrical Systems Ltd, of 91 Meadow Park, Slough SL1 3QW, the Subcontractor. The Contractor is refurbishing the fictional Riverside Archive Centre at 2 Millbank Road, Reading RG2 0AA for Westborough Cultural Trust. The Subcontractor will provide the electrical installation services described below.
2. Services and programme
The Subcontractor will design, supply and install distribution boards, emergency lighting, cable containment, power outlets and testing records for the new archive storage wing. It will coordinate its work with the Contractor's drawings, the approved electrical specification dated 2 September 2026 and the site programme. Work starts on 5 October 2026 and is to reach practical completion by 18 December 2026, followed by testing and handover by 8 January 2027.
The Subcontractor will provide competent electricians, a qualified site supervisor, tools and ordinary consumables. It must identify design assumptions promptly and must not depart from an approved drawing without written approval. A written variation signed by both parties is required for a change to scope, price or completion date, except that the Contractor may direct urgent safety work and the parties will value it fairly afterwards.
3. Contractor's obligations
The Contractor will provide reasonable access to the site, the information it holds about existing services, welfare facilities and a coordinated work area. It will identify known asbestos or other hazardous materials and give reasonable notice of changes affecting the Subcontractor.
4. Price and payment
The fixed subcontract price is £248,600 excluding VAT. It includes labour, supervision, ordinary tools, testing, delivery within 35 miles of Reading and removal of the Subcontractor's waste. The Subcontractor may invoice monthly for properly evidenced completed work. The Contractor will pay undisputed amounts within 30 days of a valid invoice, subject to any notice or payment mechanism required by applicable construction law. A disputed amount must be explained in writing and the undisputed balance must still be paid. Retention is 5 percent of each certified amount, with half released at practical completion and the remainder after the defects period, to the extent lawful.
5. Performance and quality
The Subcontractor will perform with reasonable skill, care and diligence expected of a competent specialist, comply with approved specifications and leave installations safe, clean and ready for inspection. It will conduct the tests reasonably required by the specification and provide certificates, commissioning data, warranties and as-built drawings. The defects correction period is 12 months from practical completion. On notice of a defect caused by its work, the Subcontractor will promptly repair or replace it at its cost, unless the defect resulted from an unauthorised Contractor instruction or another subcontractor.
6. Safety, people and compliance
The Subcontractor is responsible for its personnel, payroll, tax, training and supervision. It will comply with the site induction, risk assessments, method statements, safety plan and all applicable health, safety, environmental and building rules. It will maintain safe isolation procedures and report an accident, near miss, dangerous occurrence or regulator visit immediately. The Subcontractor will not use child labour, forced labour or unapproved workers and will obtain all licences required for its services.
The Subcontractor is an independent contractor and has no authority to bind the Contractor. Nothing here creates employment, partnership or agency. If an individual or personal service company performs the work, the parties will review the applicable tax and employment-status rules and operate any required deductions or reporting.
7. Subcontracting, insurance and indemnity
The Subcontractor must obtain written consent before subcontracting a material part of the services. It remains responsible for approved subcontractors and must require equivalent confidentiality, safety and quality obligations. It will maintain employers' liability insurance of at least £10,000,000, public liability insurance of at least £5,000,000 and professional indemnity insurance of £1,000,000 for design services. It will provide certificates and indemnify the Contractor for direct loss caused by its negligent work, unlawful act or breach, subject to applicable law.
8. Confidentiality and project information
Each party will protect the other's non-public technical, pricing and project information and use it only for the works. The Subcontractor may not photograph the site, publish the project or contact the client for commercial purposes without consent, except where disclosure is legally required. Project drawings and as-built records may be used by the Contractor and client for operation, maintenance and future alteration of the archive centre.
9. Suspension and termination
The Contractor may suspend work for safety, coordination or client reasons by written notice, and the parties will agree reasonable time and cost adjustments where the suspension was not caused by the Subcontractor. Either party may terminate for a material breach not remedied within 14 days, insolvency where lawful or abandonment. The Contractor may terminate immediately for serious safety misconduct or unauthorised removal of workers. On termination, the Subcontractor will secure the works, hand over records and return materials paid for by the Contractor. Properly completed work will be valued under the Agreement.
10. Governing law and execution
The parties propose the law of England and Wales and the courts of Reading, but this sample does not replace statutory construction payment or dispute procedures. The parties must confirm the governing law, main contract requirements, required insurance wording, site permits and any formalities for deeds, guarantees or electronic execution before relying on this Agreement.
Signatures
For Cedarline Build Ltd: Hannah Cole, Contracts Director Signature: ____________________ Date: 15 September 2026
For Atlas Electrical Systems Ltd: Ravi Malhotra, Director Signature: ____________________ Date: 15 September 2026