General Contractor And Subcontractor Agreement
Because of their position in the work payment chain, subcontractors face different challenges with regard to their contract and project payments. If there are modification contracts that are provided by the contractor or client who amends the agreement, negotiations on these amendments should be in accordance with the agreement. This usually consists of no more than 3-5 working days, otherwise the contract can be terminated. If your subcontract contains a top-down system, make sure you receive a copy of the main contract. There may be areas in your sub-contract that are either silent on a particular subject or obscure. The main contract can give you the necessary discernment. They must meet all written notifications or authorization requirements contained in the Prime contract. The confidentiality agreement is a section that defines the information that the contractor and/or subcontractor must treat confidentially. If the details of the project are not something that cannot be disclosed or discussed, it should be included in the model for subcontractors. In this regard, the contractor must verify the control agreement to ensure that there is no conflict between the exchange of information with the subcontractor. The confidentiality agreement must define all the conditions of confidentiality, but not in contradiction with them, already mentioned in the contract with the tenant.
When confidentiality rules are violated in one way or another, this section of the subcontractor`s form defines the consequences of the offence. Unless otherwise stated, the framework settlement procedure for a dispute between the parties is a legal action. However, construction contracts increasingly contain arbitration provisions that require parties to take legal action in a binding arbitration procedure. The national and federal courts have made it clear that these provisions are applicable. When a subcontractor signs a contract with an arbitration provision, it must consider that it is excluded from the court. The advantages of conciliation are speed, informality and a decision maker (arbitrator) who is an expert in construction law and the world of contractors. The main drawback is that the arbitration effectively excludes the appeal. The arbitrator`s decision is final. Arbitration rules should be carefully reviewed to include the allocation of pre-fee and the arbitrator`s authority to award damages. The cost of arbitration is much higher than the cost of the court.
Registration fees and arbitrator fees can be in the thousands of dollars or even five figures. The contract determines who pays and when. It is customary for the defendant (respondent) to be exempted from this obligation before determining liability, but it is also a significant obstacle for the applicant (plaintiff), who must first pay for both parties. With respect to damages, the arbitrator should be allowed to award all damages under the law, including the award of legal fees to the dominant party. And whether a case is judicial or judicial, the parties have mediation (without commitment until a binding agreement) and are recommended as a relatively inexpensive tool to solve the problem. The model for subcontractors will have many clauses. Each section is written in concise language. Clarity of concepts is essential, so that in the future there will be no ambiguity or confusion.
