Sub Contracting Agreement

SUBCONTRACT AGREEMENT
This Agreement is made this__________________ day of _____________________________ , 20 ______ ,

between
____________________________________________________________________________ (Main
Contractor) and
____________________________________________________________________________ (Subcontractor).
The work described in Section 1 below shall be performed in accordance with the prime contract between
Contractor and __________________________________ (Owner) and in accordance with all plans,
specifications and other contract documents attached to or incorporated into the prime contract for the project
known as:
__________________________________________________________________________________________
The Procurement Entity is:_____________________________________________________________________
SECTION 1. SCOPE.
Subcontractor agrees to furnish all labor, materials, equipment and other facilities required to complete the
following work:
Name of work:
Contract Identification No:
Nature of Work to be Sub-contracted:
Subcontracted Section:
_________________________________________________________________________________
SECTION 2. PAYMENTS APPLICABLE TAXES.

a) Sub-contractor shall submit its running account bill to the Main contractor in evey fifteen(15) days of
month. The main contractor shall pay the subcontractor within 15 working days of submission of
running account bill by subcontractor.
b) Subcontractor is liable to pay all the applicable taxes including Tax Deducted at Source(TDS).
c) The Subcontractor shall be paid in full amount with Value Added Tax(VAT) as procurement entity
(DOR) has issued and Retention money shall not be deducted to the subcontractor.
d) The payment made against running account bill to subcontractor shall subject to price adjustment as
proposed in bidding document and agreement made between main contractor and procurement entity.
e) The Subcontractor
f) Main contractor shall have a margin of two (2.0%) percent excluding TDS and VAT against the
running account bill submitted by subcontractor including Quantity Variation, Price
Variation/Escalation, Extra Works, Claims and shall be entitled to recover the same from the gross
value of the work executed by subcontractor from each bill including final bill. Above said margin is
exclusive of TDS @ 1.5% or as may be applicable.
SECTION 3. ENTIRE AGREEMENT.
1
This Agreement represents the entire agreement between Contractor and the Subcontractor and supersedes any
prior written or oral representations. Subcontractor, its subcontractors, suppliers and/or material men are bound
by the prime contract and any contract documents incorporated therein so far as they relate in any way, directly
or indirectly, to the work covered by this Agreement.
SECTION 4. TIME.
Time is of the essence of this Agreement. Subcontractor shall provide Contractor with scheduling information in
a form acceptable to Contractor and shall conform to Contractor's progress schedules, including any changes
made by Contractor in the scheduling of work. Subcontractor shall coordinate its work with that of all other
contractors, subcontractors, suppliers and/or materialmen so as not to delay or damage their performance.
SECTION 5. DELAY.
Should Subcontractor delay Contractor, any other Subcontractor, or anyone else on the Project, Subcontractor
will indemnify Contractor and hold Contractor harmless for any damages, claims, demands, liens, stop notices,
lawsuits, attorneys' fees, and other costs or liabilities imposed on Contractor connected with said delay by
Subcontractor.
SECTION 6 CHANGES IN WORK

Subcontractor shall make no changes in the work covered by this Agreement without written direction from the
Contractor. Subcontractor shall not be compensated for any change which is made without such written direction
No changes in the work covered by this Agreement shall exonerate any surety or any bond given in connection
with this Agreement.
SECTION 7. CLAIMS.
If any dispute shall arise between Contractor and Subcontractor regarding performance of the work, or any
alleged change in the work, Subcontractor shall timely perform the disputed work and shall give written notice of
a claim for additional compensation for the work prior to commencement of the disputed work Subcontractor s
failure to give written notice prior to commencement constitutes an agreement by Subcontractor that it will
receive no extra compensation for the disputed work.
SECTION 8 INSPECTIONS AND PROTECTION OF WORK

Subcontractor shall make the work accessible at all reasonable times for inspection by the Contractor
Subcontractor shall at the first opportunity inspect all material and equipment delivered to the job site by others
to be used or incorporated in the Subcontractor s work and give prompt notice of any defect therein
Subcontractor assumes full responsibility to protect the work done hereunder until final acceptance by the Owner
and Contractor.
SECTION 9. LABOR RELATIONS.

Subcontractor shall maintain labor relations policies in conformity with the directions of the Contractor and shall
be bound to and comply with all of the terms and conditions, including trust fund contributions, required by those
labor agreements applicable to work performed under this Agreement to which the Contractor is bound.
SECTION 10. TERMINATION.

(i) Should Subcontractor fail to rectify any contractual deficiencies, including failure to pay its creditors, within
fifteen (15) working days from receipt of Contractor's written notice, Contractor shall have the right to take
whatever steps it deems necessary to correct said deficiencies and charge the cost thereof to subcontractor, who
shall be liable for the full cost of Contractor's corrective action, including overhead, profit and actual attorneys'
fees. (ii) Contractor may at any time and for any reason terminate Subcontractor's services hereunder at
Contractor's convenience. In the event of termination for convenience, Subcontractor shall recover only the
actual cost of work completed to the date of termination, in approved units of work of the completed.
2
Subcontractor shall not be entitled to any claim or lien against Contractor, Owner or anyone else for any
additional compensation or damages in the event of such termination.
SECTION 11. INDEMNIFICATION.

To the fullest extent permitted by law, Subcontractor shall indemnify and hold harmless Owner and Contractor
and their agents and employees from claims, demands, causes of actions and liabilities of every kind and nature
whatsoever arising out of or in connection with Subcontractor’s operations performed under this Agreement.
This indemnification shall extend to claims occurring after this Agreement is terminated as well as while it is in
force. The indemnity shall apply regardless of any active and/or passive negligent act or omission of Owner or
Contractor, or their agents or employees, but Subcontractor shall not be obligated to indemnify any party for
claims arising from the sole negligence or willful misconduct of Owner or Contractor or their agent or employees
or caused solely by the designs provided by such parties. The indemnity set forth in this Section shall not be
limited by insurance requirements or by any other provision of this Agreement. All work covered by this
Agreement done at the site or in preparing or delivering materials or equipment to the site shall be at the sole risk
of Subcontractor until the completed work is accepted by Contractor.
SECTION 12. INSURANCE.

Subcontractor shall procure and maintain insurance on all of its operations, with carriers acceptable to
Contractor, and in amounts acceptable to Contractor and as required by the prime contract. The main contractor
shall pay the BOQ items of insurance to the subcontractor on pro-rata basis.
SECTION 13. DISPUTE RESOLUTION.

Any dispute resolution procedure in the prime contract shall be deemed incorporated in this Agreement, and shall
apply to any disputes arising hereunder, except disputes not involving the acts, omissions or otherwise the
responsibility of the Owner under the prime contract, those which have been waived by the making or acceptance
of final payment, and questions regarding the licensure of the subcontractor. Subject to compliance with all
applicable laws including but not limited to those relating to false claims dispute and claim certifications and cost
and pricing data requirements Contractor’s sole obligation is to present any timely-filed claims by Subcontractor
to the Owner under such procedure and, subject to the other provisions of this Agreement, to pay to
Subcontractor the proportionate part of any sums paid by the Owner to which Subcontractor is entitled. For
disputes not involving the acts, omissions or otherwise the responsibility of the Owner under the prime contract,
the parties hereto shall submit any and all disputes arising under or relating to the terms and conditions of the
Subcontract to arbitration in accordance with the NEPCA. No demand in arbitration shall be made after the date
when the institution of legal or equitable proceedings based on such dispute would be barred by the applicable
statute of limitations. In any dispute resolution between the parties, the prevailing party shall be entitled in
addition to any other relief granted to recover its costs ofparticipation including attorneys and experts fees. An
award rendered by an arbitrator(s) shall be final and judgment may be entered upon it in accordance with
applicable law in any court having jurisdiction.
SECTION 14 WARRANTIES
Subcontractor warrants to Owner and Contractor that all materials and equipment if furnished, shall be in
working condition otherwise specified and that all work under this Agreement will be performed in a good and,
shall be of good quality, free from faults and defects and in conformance with the Contract Documents All work
not conforming to these requirements including substitutions not properly approved and authorized, may be
considered defective The warranty provided in this section 14 shall be in addition to and not in limitation of any
other warranty or remedy required by law or by the Contract Documents.
Dated:
_________________________________________Dated:__________________________________________
3
CONTRACTOR: SUBCONTRACTOR:
_______________________________________________
______________________________________________
By_____________________________________________
By____________________________________________
(Name) (Name)
______________________________________________
______________________________________________
(Address) (Address)
______________________________________________
______________________________________________
______________________________________________
______________________________________________
(Contractors License Number) (Contractors License Number)

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SUBCONTRACT AGREEMENT

This Agreement is made this day of _____ , 20 ,

The Procurement Entity is:_____________________________________________________________________

SECTION 2. PAYMENTS APPLICABLE TAXES.

SECTION 3. ENTIRE AGREEMENT.

SECTION 6 CHANGES IN WORK

SECTION 8 INSPECTIONS AND PROTECTION OF WORK

SECTION 9. LABOR RELATIONS.

SECTION 10. TERMINATION.

SECTION 11. INDEMNIFICATION.

SECTION 12. INSURANCE.

SECTION 13. DISPUTE RESOLUTION.

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