AS4901 Subcontract Agreement

Definitions

1.Definitions

This document is to be read in conjunction with the AS4901. The definitions as outlined in section 1 of the above mentioned document shall abide in this subcontract.

2.Work Authorization

The main contractor has no obligation to assign any work or task order under this agreement. If any work is awarded to the subcontractor, the parties are in agreement that such works will be subject to the terms and conditions of this contract.

3.Task Orders

All the task orders are to comply by the terms and conditions of this subcontract whether stated explicitly or not. The terms and conditions of this order are to take precedence in the event of any conflict between this agreement and a task order

4.Term

Unless otherwise terminated as outlined herein, the term of this subcontract will commence on effective ___________ and end on ___________.

5.Compensation

6.Back charges

In the event that the subcontractor will default in performance as stipulated in this conditions of contract, then the breaching sub-contractor will “be responsible for all of the costs” of the defect.[ Conference Proceedings. Standard Forms of Contract Selection Criteria: A Qualitative Analysis of the Western Australian Construction Industry. Whyte, Andrew. Macpherson, Erin. RICS Construction and Property Conference. Page 651, 2011

7.Insurance

The sub-contractor shall procure insurance with insurance companies at minimum best ratings prior to commencement of any work under this contract. The insurance shall be upheld at all times during the period of this contract.

8.No further claims

At the end of job, the sub-contractor shall not be entitled to receive and shall not claim any additional right or compensation including but not limited to any claim of wages, interest or damages. The sub-contractor also agrees that the main contractor makes this agreement without any admission of liability and thus will refrain from defaming or making false allegations about the main contractor.[ Contracting costs and residual claims: the separation of ownership and control. Klein, Benjamin in The Journal of Law and Economics Volume 26 issue no. 2. Page 367-374, 2013 Published by The University of Chicago Press

9.CONTRACTORS RIGHT TO DISMISS

The sub-contractor retains the right to dismiss employees from site for reasonable cause, or for any cause the builder considers reasonable, or at the builders discretion, with a requirement for arbitration, and whether to include safety, non-performance etc.

10.PRIOR WORKS

The subcontractor shall be deemed to accept the adequacy and completeness of the prior work as soon as he commences work on the prior work, and make no claims for variations for the inadequacy of prior work. (i.e. subcontractor can issue non-conformance certificates as part of their QA process.

Work Authorization

11.WHS

The sub-contractor will be liable to the following during the period of the contract;

I.The personal wellbeing and safety of the employees subject to the contract.

II.At all times the sub-contractor shall ensure that other persons are not harmed by the actions of workers, or lack thereof.

III.The sub-contractor shall ensure that all relevant tools and equipment used to undertake the works are kept in safe and serviceable condition and used according to standard operating procedures.

IV.The sub-contractor is to comply with the safety standards and always have employees working at elevated positions with a double lanyard system connected at all times to safe anchorage point.

12.SERVICES

Services to be provided by the main contractor shall be, and not limited to the following; materials handling, crane, man and material hoist, toilet facilities and power. The Subcontractor shall be responsible for unloading trucks, and the provision of any site sheds and any scope of works that shall be deemed necessary by the main contractor and communicated through the task order.

13.QUALITY

The works as undertaken by the sub-contractor shall comply to the minimum requirements of the local authority for safety standards. The quality of workmanship as stipulated in the specifications and the attention to detail needed shall be adhered to. All products and materials shall be installed according to the manufacturing and industry instructions.

14.DISPUTE RESOLUTION

In the event of a conflict between the sub-contractor and the main contractor, the following should be done;

a)Mediation – The mediator appointed to solve the dispute between the main and sub-contractors shall be chosen based on mutual understanding of the subject matter in contention. The proceedings of the mediation process shall remain confidential and shall not be used in any subsequent court proceedings, if there be any. Failure to resolve the conflict via mediation shall then pave way for arbitration.

b)Binding arbitration – Any claim or dispute arising out of or relating to this contract, or breach thereof, shall be decided by binding arbitration in accordance with state law, and judgement on the award rendered by the arbitrator(s) may be entered into any court having jurisdiction thereof

15.TERMINATION

The right to terminate the contract shall rest with both the main contractor and the sub-contractor if either party does not meet the others obligations. The legal termination of contract shall fall in one of the following categories

a.Termination on notice

b.Termination on breach

c.Termination on insolvency

Task Orders

d.Termination on a change of control

e.Termination of an event such as a superseding agreement

16.INSPECTION AND ACCEPTANCE

The main contractor has the right to require the sub-contractor to perform rendered services again, or repair sections in the event of non-conformity to the task order standards at the sole cost of the sub-contractor.

Part 2 (b)

The companies that are not presently in the company’s list of sub-contractors shall go through an evaluation process to be selected to join the list of sub-contractors. The list shall be evaluated periodically to give a chance for other new companies to enter into the list of sub-contractors.

The following criteria shall be used to evaluate the sub-contractors;

1)A brief background of the company with the scale and number of staff included.

2)A background information of the company’s performance on similar works before.

3)The timeline for the project including the proposed starting date.

4)An outline of the relevant resources that the company will be using.

5)The procedures that will be employed in reporting work progress.

6)The details of the CV’s of the team that is proposed to work on the project.

Part 3 (c)

The communication process to be adopted for this project between the main contractor and the sub-contractor is as follows;

i.All site instructions shall be officially communicated via a serialized site instruction book by the authorizing officer.

ii.The preferred mode of communication shall be through emails that shall be copied to all relevant parties for quick action to be taken. This includes notifications of site meetings and distribution of site minutes.

Part 3 (d)

It is the company’s responsibility to manage the sub-contractors working on the project. The job done by sub-contractors on site will be evaluated, scored and then re-evaluated using the quality control system set in place and also documented in the standard operating procedure. The activities will range from;

oAssessing sub-contractor performance reports periodically and identify practices that require management intervention.

oPrompt identification and resolution of issues to ensure minimal impact to service delivery.

oImplementation of appropriate performance measures.

oAddressing the need for training and implementing the same.

The key performance indicators that are set by the prime contractor will be analysed for each sub-contractor to identify poor performance and outliners. The table below shows a template of the performance indicator to be used.

Performance indicator Actual Percentage of total works completed Target percentage of total works completed Average percentage of total works completed

Compensation

When a sub-contractor is identified to perform services that raise concern, the prime contractor will investigate the said concerns and appropriate action will be taken.

Where concerns about the quality of work done by the sub-contractor arise, the prime contractor will gather all appropriate evidence in order to establish whether the complaints are justified. When a fundamental clause in the contract has been breached, the prime contractor will issue a breach notice and a remedial notice with the passing of time. The breach notice only requires the sub-contractor to acknowledge the occurrence of a breach while the remedial notice requires the sub-contractor to develop an action plan to remedy the breach. Below is a 5 stage breach process for sub-contractor performance management.

Incident Action by company Personnel notified

Breach 1 First performance incident oThe prime contractor will contact the sub-contractor to discuss the key performance indicators

Breach letter 1 issued

Sub-contractor to confirm in writing that the required remedial actions will be taken. J.R

Breach 2 Second performance incident oThe prime contractor will organise for the sub-contractor training and peer discussion if deemed appropriate

Breach letter 2 issued

Sub-contractor to confirm in writing that the required remedial actions will be taken and evidence of the same having been done be provided to the prime contractor in 4 weeks. J.R

Breach 3 Third performance incident in 12 month period oThe prime contractor will organise for the sub-contractor training and peer discussion if deemed appropriate

Breach letter 3 issued with reference to breach letter 2

Sub-contractor to confirm in writing that the required remedial actions will be taken and evidence of the same having been done be provided to the prime contractor in 4 weeks. J.R

Breach 4 Fourth performance incident in 12 month period oContract suspension letter issued

All work progress halted temporarily

The prime contractor will organise for the sub-contractor training and peer discussion if deemed appropriate

The sub-contractor demonstrates competence before reinstating of the contract

Termination letter issued if sub-contractor cannot demonstrate competence J.R

Breach 5 Fifth performance incident in 12 month period oIssuance of contract termination letter

oSub-contractor permanently removed from the site.

Part 3 (e)

1.Site rules

The prime contractor has a number of rules that apply to all the sub-contractors as described below;

• Dress and behaviour – In a bid to provide a safe working environment, the sub – contractors are asked to behave reasonably at all times while on site. Loud and abusive behaviour will not be condoned under any circumstance.
• Alcohol and drug policy – the use of restricted drugs in the work premises is expressly forbidden. Any sub – contractor found to have breached this rule will be banished from the site.
• Work outside normal working hours – the normal working hours are from 8:00am to 5:00pm. Any work that is scheduled to take place during the weekends and past the normal working hours must be approved by the project manager and a competent supervisor must be present to oversee the said works.
• Mobile phones – The use of mobile phones is permitted on site. However, phones must not be used where this could endanger the safety of oneself and others on site. Use of phones while driving on site or operating a machine is prohibited.
• Plant and equipment – only competent plant operators are supposed to use the same. Training and evidence of the same is expected from the sub – contractor’s operatives for all the equipment present on site.

2.Emergency procedures

In the event of an emergency, the following is to be done by everyone present on site;

• Halt all work and make sure that the surrounding workplace is safe
• Leave the work station using the nearest exit
• Assemble at the designated assembly point
• Not to resume work until a safety officer has approved that it is safe to do so.

3.Permits to work

For proper planning and execution of work, the permits to work are requested for in good time for the following sections;

• Working in confined spaces
• Working on lifts
• Excavations
• High and low voltage electrical works

4.Site meetings

Regular meetings will be scheduled to track the progress of the work. Part of the agenda for the meetings will be safety report of accidents and near-misses reported.