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When signing a contract with the main construction contractor, a sub-contractor should pay attention to several terms in the agreement regarding consistency, the progress of work processes, payment, etc., if there is a disagreement between the two parties. With good preparation in all aspects and the provisions in the contract, the construction and construction process implementation will be less troublesome. For transparent information and specific work, subcontractors must also pay attention to several issues after establishing a cooperation agreement.
Relationship between subcontractors and main contractors
A leading contractor means a contractor responsible for participating in the bidding, taking his name in the bidding process, and implementing the contents of the contract with the investor. As a rule, the main contractor can be a separate independent contractor or the main contractor can be a member of other consortium contractors.
The main contractor is also responsible for the responsibility related to the quality, volume, or progress of the work and other related duties for the work performed by the subcontractor.
A subcontractor means a contractor who implements the bidding packages that the subcontractor has signed with the main contractor through the contract. The sub-contractor is responsible for the correct implementation of the contents of that contract.
In addition to subcontractors, there are exceptional subcontractors. Particular subcontractors are like a subcontractor. The special sub-contractor is in charge of performing essential works related to the bidding package and is proposed by the main contractor in the content of the bid. These subcontractors will work directly with the main contractor, not with investors.
During the construction of a work, the main contractor will be responsible to the investor, and the sub-contractor will be accountable to the main contractor. Thus, we have understood the relationship between the main contractor and the subcontractor. That is an equal partnership through a contract.
Things to keep in mind when signing a contract with the main contractor
In the process of negotiating and signing a contract with the main contractor, the subcontractor should also note the following:
Independence between contracts
This note is something that subcontractors need to keep in mind when signing a business contract with the main construction contractor. Please consider whether the terms of the agreement are valid, the assigned work, and the rights and obligations between the two parties are satisfied. Typically, a subcontractor’s workload cannot do 100% of the entire project’s workload. Therefore, subcontractors need to pay attention to the amount of work they will undertake.
Price
Decide how to charge your partner: a package price or a price based on the volume of materials needed. In this respect, the subcontractor must clearly define in the contract that he will receive remuneration from whom, from the main construction contractor, or the investor. And for cases that arise outside the agreement, the subcontractor also needs to discuss it in advance so that when it happens, it won’t cause controversy between the three parties.
Working progress
To win the bid, contractors often create a beautiful design at a low price for the investor. Therefore, subcontractors need to pay special attention to this issue; otherwise, the subcontractor will become the bearer of the main unscrupulous construction contractors. If there is any disagreement about the working term, the subcontractor needs to negotiate and discuss again to avoid as much damage as possible. Finally, about the breach of contract, if it is late, the subcontractor needs to be concerned about how long it will take to stop the contract with the main construction contractor.
Acceptance – handing over work
Based on the subcontractor’s contract requirements and the attached documents and drawings, it is converted into acceptance conditions. The signed contract must clearly state each specific test and acceptance item such as process, labor, notice time, …
Before signing a contract with the construction unit, you should ask the contractor to present documents proving the operation capacity and industry capacity to create confidence and ensure the quality of the work.
Commitment to occupational safety
The contract must stipulate the price, construction method, payment time… as well as regulations on labor safety and insurance regulations on compliance with local rules of life to ensure a guarantee to solve problems that arise in the future.
Pay
Since the subcontractor’s contract is separate and exclusive from the main construction contractor, payment must also be independent. Accepting the joint payment with the agreement signed by the main construction contractor with the investor is impossible. All work and communication of subcontractors occur between the main contractor and the subcontractor. Remember that the owner has no responsibility or authority in the cooperation relationship between the main contractor and the sub-contractor.
Comply with the contract
The last thing in the note for subcontractors is that when starting work, it is necessary to follow what the contract has stated to comply with their obligations in the agreement. And any work during the construction process also needs a written, signed clearly in case legal problems occur later.
Thus, Miami Contractors has brought you some notes when signing the contract between the main contractor and the sub-contractor. Hope the article has got you helpful information, and thank you for reading our article.