Construction Subcontract Agreement — Step 1 of 10 — Online Contracts UK
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🏗️ Construction Subcontract Agreement
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ℹ️ Construction Subcontracts — Legal background ▾

Construction subcontracts are subject to specific statutory rights under the Housing Grants, Construction and Regeneration Act 1996 (Construction Act). Key rights include: right to payment at regular intervals, right to suspend for non-payment, and adjudication as a fast-track dispute resolution.

  • Construction Act 1996: payment notices required; 28-day pay less notice period
  • CIS (Construction Industry Scheme): main contractor must deduct 20%/30% tax from subcontractors unless verified by HMRC
  • Retention: typically 5% held until practical completion, then 2.5% for defects period
  • Adjudication: any party can refer disputes to adjudication at any time — 28-day decision
  • Insolvency: joint names insurance recommended for larger projects

Legal reference: Housing Grants, Construction and Regeneration Act 1996; Construction Industry Scheme (CIS); Scheme for Construction Contracts 1998

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