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Subcontractor Agreement

CIS-aware drafting under UK tax rules

A subcontractor services agreement for businesses engaging subcontractors on commercial projects, covering scope, payment, liability, and compliance obligations including CIS considerations.

What's included

  • Main contractor and subcontractor details
  • Scope of subcontract works
  • Payment terms and CIS deductions
  • Health and safety obligations
  • Insurance requirements
  • Defects and liability period
  • Termination for convenience

Recent legal changes

Construction and services subcontracting can engage CIS obligations and strict payment/liability risk allocation. A clear agreement reduces disputes about standards, deductions, and defects.

What is a Subcontractor Agreement?

A subcontractor agreement is a contract under which one business performs part of another business’s contractual work.

When do you need one?

Use it whenever appointing a subcontractor to clarify obligations, payment mechanics, and compliance requirements before mobilisation.

Last updated: March 2026

Frequently asked questions

Does CIS apply to every subcontractor agreement?

No. CIS depends on the nature of the work and parties involved, so contracts should be drafted to reflect likely tax treatment.

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Subcontractor AgreementPreview

1. SUBCONTRACT WORKS

The Subcontractor shall carry out and complete the Works described in Schedule 1 in accordance with this Agreement and any reasonable instructions from the Main Contractor.

2. PAYMENT

The Main Contractor shall pay the Subcontractor the sums set out in Schedule 2, subject to any deductions required under the Construction Industry Scheme.

NEXT SECTION

OBLIGATIONS

ADDITIONAL TERMS

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✓ ERA 2025 compliant · ✓ Solicitor-reviewed · ✓ Instant PDF