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Short Form Subcontractor Agreement Template for Australia

A streamlined subcontractor agreement template designed for use in Australia, incorporating essential elements required under Australian federal and state laws. This agreement establishes the legal relationship between a head contractor and subcontractor, setting out key terms including scope of works, payment terms, insurance requirements, and basic compliance obligations. The document is drafted to comply with Australian contract law principles and relevant industry regulations, while remaining sufficiently flexible to be used across various sectors and project types. It includes necessary provisions to protect both parties while maintaining brevity and clarity.

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What is a Short Form Subcontractor Agreement?

The Short Form Subcontractor Agreement is designed for situations where a head contractor needs to engage a subcontractor under a simplified but legally robust arrangement in Australia. This document is particularly suitable for smaller projects or straightforward scopes of work where a full-length contract would be excessive. It includes essential provisions required under Australian law while maintaining brevity, covering key aspects such as scope, payment terms, insurance, and basic compliance requirements. The agreement is structured to protect both parties' interests while being accessible and practical for regular business use. It's commonly used in various industries including construction, professional services, and general contracting, where the scope and risk profile don't warrant a more complex agreement. The document complies with relevant Australian federal and state legislation including the Independent Contractors Act 2006 and applicable Security of Payment legislation.

What sections should be included in a Short Form Subcontractor Agreement?

1. Parties: Identification of the head contractor and subcontractor with full legal entities and ABNs

2. Background: Context of the agreement, including reference to the head contract if relevant

3. Definitions and Interpretation: Key terms used in the agreement and rules for interpretation

4. Scope of Works: Clear description of the services/works to be performed by the subcontractor

5. Payment Terms: Fees, payment schedule, invoicing requirements and payment methods

6. Duration and Timing: Contract period, key dates, and any milestone requirements

7. Subcontractor Obligations: Key responsibilities including quality, safety, and compliance requirements

8. Head Contractor Obligations: Responsibilities of the head contractor including site access and information provision

9. Insurance and Liability: Required insurance coverage and liability limitations

10. Termination: Circumstances and process for ending the agreement

11. General Provisions: Standard legal clauses including governing law, notices, and dispute resolution

What sections are optional to include in a Short Form Subcontractor Agreement?

1. Intellectual Property: Include when the subcontractor will create or use significant IP in their work

2. Confidentiality: Add when sensitive information will be shared

3. Work Health and Safety: Expanded section needed for high-risk work or construction projects

4. Environmental Requirements: Include for work with environmental impacts or compliance requirements

5. Security Requirements: Add for projects requiring specific security clearances or measures

6. Performance Guarantees: Include when specific performance metrics or guarantees are required

7. Equipment and Materials: Add when there are specific requirements about who provides equipment/materials

What schedules should be included in a Short Form Subcontractor Agreement?

1. Schedule 1 - Scope of Works: Detailed description of works/services including specifications and requirements

2. Schedule 2 - Fees and Payment Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule 3 - Program of Works: Timeline, milestones, and completion dates

4. Schedule 4 - Insurance Requirements: Specific insurance types and coverage amounts required

5. Schedule 5 - Site Requirements: Site-specific rules, access requirements and safety procedures

6. Appendix A - Key Personnel: List of key personnel from both parties involved in the project

7. Appendix B - Forms and Templates: Standard forms for progress claims, variations, and other project documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

tiktok˰

Sector

Cost

Free to use

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