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Having a Subcontract Agreement in place for your subcontractors can give peace of mind to both contracting parties.  Clear lines are drawn with whom is responsible for specific works under the contract such as statutory requirements, retentions, insurances, site cleaning, default and termination and dispute resolution to name a few key points.

Other key areas of importance are confidentiality and liquidated damages are you covered in the event of delays on a project?.  Protecting your intellectual property (“IT”) such as plans and designs is imperative to your business, they could be your signature style that inspires referral business and which has built business relationships over a number of years, do you want someone to just utilize your IT without the appropriate license to use, that could end up affecting your reputation.

Another option would be an Independent Contractor Agreement, very similar to the Subcontract Agreement but is a document more suited for the likes of a contractor engaged to carry out specific duties such as a driver or a flooring contractor but you still want that party to be responsible for their own tax, insurance, warranties etc.  It is important that those contractors have the appropriate licenses (where required) but where they would not usually need to issue final certificates or be responsible for practical completion which is covered in the Subcontract Agreement. This type of document would protect for your business in the same form as a Subcontract Agreement as a legally binding contract.

BEST BUSINESS PRACTICE

Now is the time to have EC review your current operations including your Terms and Conditions to ensure that the terms contained therein, are clear and concise. Having the correct documentation in place limits your risk exposure, this in turn can reflect in a healthy bottom line for the business with limited issues over payment or disputes as the processes and remedies are covered in the contract.

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