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Subcontractor Agreement Payment Terms
"I need a Subcontractor Agreement Payment Terms for a large construction project in Manchester, where we'll have multiple subcontractors and require specific milestone-based payments with 5% retention and monthly payment cycles."
1. Parties: Identification and details of the contractor and subcontractor
2. Background: Context of the agreement and relationship to main contract
3. Definitions: Key terms used throughout the agreement
4. Payment Terms: Core payment provisions including amounts, timing, and method
5. Payment Notice Procedures: Requirements for payment applications and notices
6. Invoice Requirements: Specifications for valid invoices and supporting documentation
1. Milestone Payments: Used when payments are linked to specific project milestones - applicable for projects with distinct completion stages
2. Performance-Related Payments: Links payments to performance metrics - applicable when payment depends on quality or timing targets
3. Currency Provisions: Handling multiple currencies and exchange rates - applicable for international projects
1. Payment Schedule: Detailed breakdown of payment amounts and dates
2. Rate Card: Standard rates for labor, materials, and equipment
3. Application for Payment Form: Standard form for payment applications
4. VAT Requirements: Specific VAT documentation requirements
5. Bank Details: Payment account information for both parties
Authors
Application for Payment
Business Day
Commencement Date
Completion Date
Construction Period
Contract Price
Contract Sum
Due Date
Final Date for Payment
Main Contract
Main Contractor
Milestone
Pay Less Notice
Payment Certificate
Payment Notice
Payment Period
Payment Schedule
Project
Rate Card
Retention
Schedule of Rates
Services
Site
Specification
Subcontract Works
Subcontractor
Term
VAT
Variation
Works
Payment Schedule
Payment Notice Requirements
Pay Less Notices
Payment Applications
Invoicing Requirements
VAT and Taxation
Retention
Final Account
Set-off Rights
Late Payment Interest
Payment Default
Suspension Rights
Payment Security
Bank Guarantees
Performance Bonds
Milestone Payments
Variations
Currency and Exchange Rates
Payment Method
Construction Industry Scheme
Dispute Resolution
Time for Payment
Payment Certificates
Audit Rights
Record Keeping
Governing Law
Jurisdiction
Force Majeure
Termination Rights
Assignment
Notices
Entire Agreement
Severability
Amendments
Waiver
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