Subcontract review, drafting and preparation
A Subcontract Agreement is an important document that (like any contract) sets out the terms and conditions on which you have been engaged to provide building and construction work. But the problem with building contracts in Australia is that risk is often passed down the contractual chain to the smaller party.
What is a "pass through" clause?
Subcontracts often contain a "pass through" clause whereby you are deemed to have read and understood the head contract (a copy of which is usually available in the superintendents office, or online) and have accepted all the risks that the head contractor agreed to with the Principal.
These can be quite onerous, especially if you are providing only $10,000 of work but can be liable for millions in damages for a minor delay.
Get advice before you sign
Before you sign a subcontract, it's worthwhile having that reviewed and receiving advice on your obligations and any risks. We can push back and request amendments to make the subcontract more balanced. Alternatively, if you look like engaging a subcontractor to work for you, we can assist in the preparation of a suitable document.
Contact Ricketts & Associates to find out how we can help you