Prime Subcontractor Agreement Template for England and Wales

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Key Requirements PROMPT example:

Prime Subcontractor Agreement

"I need a Prime Subcontractor Agreement for a large-scale construction project in Manchester, where we'll be engaging a specialist mechanical and electrical contractor for works valued at £2.5M, starting March 2025, with specific focus on performance bonds and liquidated damages clauses."

Document background

The Prime Subcontractor Agreement is essential for projects where specialized works need to be delegated to qualified subcontractors. This document is commonly used in construction, engineering, and infrastructure projects across England and Wales, ensuring compliance with local legislation and industry standards. The agreement typically includes detailed specifications of works, payment mechanisms, quality requirements, and risk allocation between parties. It's particularly important for maintaining clear chains of responsibility and ensuring proper project delivery while protecting both the prime contractor's and subcontractor's interests.

Suggested Sections

1. Parties: Identifies and defines the contracting parties - the main contractor and subcontractor

2. Background: Sets out the context of the agreement and relationship between the parties

3. Definitions and Interpretation: Defines key terms used throughout the agreement

4. Scope of Works: Detailed description of the subcontractor's obligations and works to be performed

5. Programme and Time for Completion: Timelines, milestones, and completion requirements

6. Payment Terms: Payment mechanisms, amounts, and timing in compliance with Construction Act

7. Quality and Standards: Required quality standards and compliance requirements

8. Health and Safety: Health and safety obligations and requirements

9. Insurance and Liability: Insurance requirements and liability allocation

10. Termination: Circumstances and procedures for contract termination

Optional Sections

1. Performance Security: Requirements for bonds or guarantees - used for high-value or high-risk contracts

2. Intellectual Property Rights: IP ownership and licensing provisions - used when design or creative works are involved

3. Force Majeure: Provisions for unforeseen circumstances - used for longer-term or complex projects

4. Liquidated Damages: Pre-agreed damages for specific breaches - used when specific losses can be predicted

Suggested Schedules

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

2. Programme: Detailed timeline and milestone dates

3. Rates and Prices: Breakdown of costs and pricing structure

4. Site Information: Details about the work site and conditions

5. Required Insurances: Specific insurance requirements and levels

6. Form of Collateral Warranty: Standard form for any required warranties

7. Key Personnel: List of key staff and their roles

8. Forms of Payment Applications and Certificates: Standard forms for payment processes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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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Authors

Alex Denne

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