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Subcontractor Agreements

Subcontractor Agreements

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This contract is a subcontractor agreement between two parties, namely ABC who is the contractor and DEF who is the subcontractor, both of whom will be termed as such for the purposes of this document. The contract is dated dd/mm/yyyy and shall come into effect on dd/mm/yyyy. The subcontractor agreement relates to a construction project, the details of which are contained below.
1.    Work Description and Timelines
As is customary with subcontractor agreements, a clear outline of the work to be performed by the subcontractor is required. This is contained in Exhibit A of the annexure to this contract. In addition, the following considerations are in order:
1.1    The subcontractor shall complete the tasks strictly adhering to the specifications provided in Exhibit A of the annexure to this subcontractor agreement.
1.2    As per subcontractor agreements, the work shall be deemed complete when all criteria contained in Exhibit B have been met.
1.3    The date of completion of work shall be dd/mm/yyyy.
2.    Payment Modalities
As is required with subcontractor agreements, a detailed account of the payment modalities relating to the work being performed shall be provided. The following are the payment details for the said project:
2.1    In consideration for the work being performed, the contractor shall pay the subcontractor a sum of $ XXX.
2.2    Payment shall be made in two parts. First 50% shall be paid at the time of signing the contract and the remaining 50% at the time of completion.
2.3    This subcontractor agreement specifies that final payment shall only be made upon submission by the subcontractor of all guarantees and other documents validating the quality and life of materials utilized in the project. Payment shall only be made if such materials meet the criteria outlined in Exhibit A.
2.4    According to subcontractor agreements, once the subcontractor provides his bill, the contractor shall spend not more than 20 days inspecting the quality of the work performed. Payment should be made within 20 days of receiving the invoice if the work meets the standards specified.
3.    Behavioral Requirements
As per subcontractor agreements, certain behavioral requirements are expected from the subcontractor during the course of this agreement.
3.1    The subcontractor shall be responsible for maintaining the cleanliness of the site and shall ensure the removal of all wastage and debris not more than one day after it accumulates.
3.2    Neither the subcontractor nor his employees are permitted to smoke or consume alcohol on the site as per this subcontractor agreement.
3.3    As is customary with subcontractor agreements, all workers shall take adequate safety precautions, which include wearing hard hats while on site and using appropriate harnesses while performing their work.
4.    Breach of Contract
Subcontractor agreements are required to specify what would constitute a breach of agreement. The details relating to this subcontractor agreement are provided below:
4.1    Failure to meet the timeline
In the event that the subcontractor fails to meet the date deadline specified in section 1.3 of this document, the subcontractor agreement shall be in breach.
4.1.1    In the event that the deadline is not met and the subcontractor is not able to rectify the delay within 30 days, the contractor may withhold any remaining payments to the subcontractor as per the terms of subcontractor agreements.
4.1.2    Prior to signing this subcontractor agreement, the subcontractor has provided his estimate on the time required to complete the task and has considered any delays relating to material shortages, worker shortages and transportation.
4.2    Failure to meet the work standards outlined in the contract
On completion of the tasks performed, if the work performed does not meet the standards outlined in exhibit A of the subcontractor agreement, it shall be in breach.
4.2.1    As per subcontractor agreements that are in breach, the subcontractor shall be required to repay the advance amount of $XXX and a penalty of $XXX for failing to meet the standards provided in the contract.
4.2.2    In case of any dispute, an independent arbitrator shall be employed to settle the dispute. The subcontractor agreement provides that the charges for settling the dispute shall be borne by the unsuccessful party.
Both the contractor and subcontractor fully understand the clauses contained in the subcontractor agreement and shall be bound by the conditions contained therein.

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