SA2017 FINAL - 18.1 - Alexander Construction
SubcontractAgreementSA 2017Project:Trade:Subcontractor:Reference:
FOREWORDFOREWORD to SA-2017SA-2009 was a historic collaboration between parties representing builders and subcontractors to produce aworkable and reasonably balanced document that clearly set out each party’s obligations, but was able to betailored to suit particular requirements. Mark Holland of Hazelton Law should be commended for hisexcellent legal advice and central role in drafting the amendments for SA2017.Mark Holland of Hazelton Law should be recognised for his excellent legal advice and drafting of theamendments to the contract.SA-2017 is an update to ensure compliance with the Construction Contracts Amendment Act 2015, to alignthe document with NZS 3910:2013 and to provide an option to enable use with NZS 3916: 2013.Following consultation with various parties from each side, changes other than those noted above wereminor.SA-2017 is only available as a pdf file. This document is subject to copyright. It may only be used withoutalteration.Previous FOREWORD to SA-2009A good working relationship between the Contractor and Subcontractor is critical to ensuring constructionprojects run smoothly and are completed on time and to budget. As much as these good relationships doexist, there has also been a long history of disputes and other problems.This Subcontract Agreement is aimed at enhancing already established practices by ensuring obligationsand responsibilities are identified up front, thereby avoiding later disputes which can be costly in both timeand goodwill.The Agreement was developed by a working group of representatives from the Registered Master BuildersFederation and the New Zealand Specialist Trade Contractors Federation Incorporated (formerly the NewZealand Building Subcontractors Federation).Registered Master Builders FederationNew Zealand Specialist Trade Contractors FederationRobert Finley - Hawkins ConstructionIan Butturini - Electrical Contractors Association Of NewZealandJohn Hale - Fletcher ConstructionRod Fulford - Precast New ZealandNoel O’Rourke - Mainzeal ConstructionRoger O’Neil - Reinforcing New Zealand IncorporatedTim Strawbridge - Foster ConstructionMike Sentch - Roofing Association New ZealandIncorporatedLegal advice provided by:Project Managers:Michael Weatherall - Simpson GriersonMary Haggie - Kensington SwanAndrew Hazelton - Hazelton LawRob SteeleGrant ThomasThe document has four parts:1.The Subcontract Agreement2.The Subcontract Specific Conditions (which includes Special Conditions)3.The Subcontract General Conditions4.AppendicesSubcontract Agreement – December 2017 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation Inc
The Subcontract Agreement contains basic information naming the parties, price, etc, and lists thesubcontract documents.The Subcontract General Conditions make up the bulk of the document and contain the standard contractclauses that should not be changed. Attempts to tailor the Subcontract General Conditions are likely tomislead parties and result in confusion or disputes. If any changes to these conditions are required by eitherparty or the particular head contract, they must be covered in the Subcontract Specific Conditions or SpecialConditions to be agreed between the parties. Subcontract Specific Conditions take precedence over all otherdocuments except where there are Special Conditions whereby these take precedence over the SubcontractSpecific Conditions.Once parties are familiar with this Agreement, they will not need to refer to the Subcontract GeneralConditions, as the content will be well known and understood. The Subcontract Specific Conditions shouldcontain all the contract information that parties require for pricing and signing of the contract.The tables in the Subcontract Specific Conditions provide a basis to confirm the specific obligations of theparties referred to in the Subcontract General Conditions. Many of the tables require a simple yes or no;others contain suggested time frames and other details; while some require specific information to beinserted. Any figures within the tables are guidelines only; they can be altered as agreed between theContractor and Subcontractor.Clauses not relevant to particular contracts can be ignored or noted in Special Conditions as not beingapplicable. Situations not dealt with by the standard document should also be covered in Special Conditions.Although reference is made to performance bonds and bonds in lieu of retentions, and example forms areprovided for these, it is not intended to promote the use of bonds, but rather to provide a basis for their use ifagreed to by the parties.Pre-letting meetings are strongly encouraged and Appendix D provides an example form that may be usedor adapted for this. The pre-letting meeting minutes should record what is agreed and should be included inthe Subcontract Documents. This will then take precedence over other conditions, but whatever is agreedand recorded in the pre-letting meeting minutes should also be recorded in the Subcontract SpecificConditions.Subcontract Agreement – December 2017 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation Inc
TABLE OF CONTENTSPageSubcontract AgreementSA1Subcontract Specific Conditions2.3.The ContractSubcontractor’s Bonds and ional DocumentsSC3SC5Special ConditionsSC5Subcontract General ConditionsSection 1Interpretation and DefinitionsGC1Section 2Section 3ContractsSubcontractor’s Bonds and GuaranteesGC2GC3Section 4Section 5Sub-Letting or AssigningGeneral ObligationsGC4GC5Section 6Design and Producer StatementsGC10Section 7Section 8IndemnityInsuranceGC11GC12Section 9VariationsGC14Section 10Section 11TimeDefectsGC15GC17Section 12Section 13PaymentsDisputes and RemediesGC18GC20Section 14DefaultGC21Section 15Section 16Urgent WorkService of NoticesGC23GC24Appendix ASupply Only SubcontractsA1Appendix B1Subcontractor’s Payment Claim SummaryA2Appendix B2Subcontractor’s Payment Claim DetailsA3Appendix B3A4Subcontractor’s Variation Claim DetailsAppendix B4Form 1: Construction Contracts Regulations 2003A5Appendix CContractor’s Payment ScheduleA7Appendix DMinutes of Subcontract Pre-Letting MeetingA8Appendix E1Subcontractor’s Bond In Lieu of Retentions – Contract PeriodA12Appendix E2Subcontractor’s Bond In Lieu of Retentions – Defects Liability PeriodA14Appendix E3A16Subcontractor’s Performance BondSubcontract Agreement – December 2017 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation Inc
SUBCONTRACT AGREEMENTTHIS AGREEMENT is made on theBETWEEN“The Contractor”Post AddressStreet AddressFax NumberEmailAND“The Subcontractor”Post AddressStreet AddressFax NumberEmailGST Numberday of20BACKGROUNDAthe Contractor has entered into a contract withB(“Principal”)(“Head Contract”).forThe Subcontractor is to complete part of the Head Contract Works, as follows(“Subcontract Works”).THE PARTIES AGREE:1.They will carry out and fulfil all obligations imposed on them by this Subcontract Agreement.2.For the Subcontract Sum of (GST excl.),or such greater or less sum as may become payable under the terms of this Subcontract, theSubcontractor will carry out and complete the Subcontract Works (and remedy all defects in theSubcontract Works) as required by this Subcontract and the conditions of the Head Contract that apply tothe Subcontract Works.3.Unless otherwise stated in this Subcontract, the Subcontractor will provide all labour, materials, services,equipment and plant required for the proper completion of the Subcontract Works.4.The following items constitute the Subcontract (“Subcontract Documents”)5.a)This Subcontract Agreement;b)The Subcontract Specific Conditions including Additional Documents and Special Conditions;c)The Subcontract General Conditions;d)The contract documents (as defined under the Head Contract), which relate to the SubcontractWorks.The Subcontract Documents are the entire contract between the Contractor and the Subcontractor. ThisSubcontract supersedes all negotiations, representations and warranties.SIGNED for and on behalf ofthe CONTRACTOR:SIGNED for and on behalf ofthe SUBCONTRACTOR:(authorised representative of the Contractor)in the presence of:(authorised representative of the Subcontractor)in the presence of:Subcontract Agreement – December 2017Page SA1 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncInitials SubcontractorInitials Contractor
SUBCONTRACT SPECIFIC CONDITIONSClause numbers refer to Subcontract General Conditions.2.THE CONTRACTThe general conditions of the Head Contract areas may have been modified by other documents in the Head Contract3.SUBCONTRACTOR’S BONDS AND GUARANTEES3.1.1Performance bond3.1.1Value of performance bond3.2Bonds in lieu of retentions3.2.1Value of bond in lieu of retentions for contractperiod 3.2.1Value of bond in lieu of retentions for defectsliability period 3.3Trade guarantees or warranties requiredYesNoYesNoYesNo When requiredDuration3.3.18.PeriodCopies attachedYesNoContinuity guarantee requiredYesNoCopy attachedYesNoINSURANCE8.1.18.2.2Contract Works Insurance by:Principal / ContractorDeductible for Contract Works insurance underHead Contract Insurance of Subcontract Works by SubcontractorYesNoIf Yes8.2.3Value of Subcontract Works insurance bySubcontractor Subcontract Value Plus allowances for:Demolition and removal of debris% Fees% Increase in costs% Variations% Total Value to be Insured Subcontract Works insurance required bySubcontractor until:(Delete those that do not apply)Practical Completion of Head ContractWorksCompletion of the Subcontract WorksOther:8.3Plant and equipment – list of items to be insured formarket value of each item8.4.2Public Liability – amount not less thanMinimum 5,000,000 or 8.4.4Use of aircraft or watercraft to be insuredYesNo Subcontract Agreement – December 2017Page SC1 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncInitials SubcontractorInitials Contractor
8.4.5Vibration removal of support insuranceYesNo 8.5.2Motor vehicle liability – amount not less thanMinimum 5,000,000 or 8.6.2Special extension required for “airside” or otherYesNoProfessional indemnity insurance requiredYesNoProfessional indemnity insurance required9.10. VARIATIONS9.1.3Time for notification of intention to claim that workinvolves a variation5 Working Days9.2.2Time for submission of price and details of avariation5 Working Days from requestTIME10.1.1Due dates for practical completion of the HeadContract10.1.1Due dates for practical completion of separableportions10.4.1Liquidated damages applicable under the HeadContract Per Calendar: (enter option - whether month/day/week)10.4.1Liquidated damages applicable under separableportions Per Calendar: (enter option - whether month/day/week)11.DEFECTS11.1.2Defects liability periodPer Calendar: (enter option - whether month/day/week)11.1.2Defects liability period of separable portionsPer Calendar: (enter option - whether month/day/week)12.from the date of the notice ofcompletion of the SubcontractWorks under clause 10.4.2(a)from the date of the notice ofcompletion of the SubcontractWorks under clause 10.4.2(a)PAYMENTSThe due dates and details are as follows:12.1.1Frequency for submission of payment claims12.1.1Due date for payment claims5 Working Days before end ofmonth for work to the end of thatmonth12.1.1Due date for variation claims5 Working Days before the duedate for payment claimsSubcontract Agreement – December 2017Page SC2 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncInitials SubcontractorInitials Contractor
12.2.1Due date for payments22 Working Days after the end ofthe claim month12.3.1Due date for final account20 Working Days after the date ofHead Contract practical completion12.4.1Percentage of total amount certified to be held asretention (only if retention bond not provided see3.2.1)Up until completionSubcontract Works% of the first of next %ofthe% of the remainder12.4.2Percentage to be retained for defects liability period(after the initial release of retentions and only ifretention bond not provided, see 3.2.1)For defects liability periodof total retentions%12.4.2Due date for initial retention release22 Working Days after the end ofthe month in which the notice ofcompletion of the SubcontractWorks under clause 10.4.2(a) isissued12.4.2Due date for final retention release25 Working Days after thecompletion of the defects liabilityperiod, or seven working days aftercompletion of rectification of alldefects in the Subcontract Works,whichever is laterMISCELLANEOUS5.2.2Subcontractor is required to obtain building consentfor Subcontract WorksYesNo5.13.1Shop drawings requiredYesNo5.13.1As built drawings required5.13.1Operating instruction and maintenance manualsrequiredYesNoIf yes,due by the month prior to the duedate for practical completionYesNoIf yes,due by the month prior to the duedate for practical completion5.13.1Producer statements required: Construction (PS3)YesNo6.1.5Producer statements required: Design (PS1)YesNo6.1.5Producer statements required: Design review (PS2)YesNo6.1.5Producer statements required: Construction review(PS4)YesNo12.5.1Payment for materials off-siteYesNo12.5.1Conditions required for off-site payment12.8Cost fluctuation adjustmentsSubcontract Agreement – December 2017Refer to Head ContractYesPage SC3 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncNoInitials SubcontractorInitials Contractor
Appendix A:Is this a Supply Only Subcontract?Yes(Appendix A applies)/NoSubcontract sum is subject to remeasureYesNoAppendix D:YesNoPre-letting meeting heldOther:Other textSubcontract Agreement – December 2017Page SC4 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncInitials SubcontractorInitials Contractor
ADDITIONAL DOCUMENTSThe following documents, all of which are attached, form part of this Subcontract (check those which apply):a)b)c)d)e)f)g)h)i)j)k)Invitation to tender datedincluding all documents listed in the invitation to tenderNotices to tenderers numbersContract ProgrammereferencedatedEmail datedfromLetter datedfromFax datedfromMinutes of Subcontract pre-letting meeting/s datedLetter of award datedSubcontractor site specific safety planSchedule of quantities (if applicable)Summary of Subcontract SumOriginal tendered price Item Item Total agreed Subcontract Sum l)m)n)o)p)SPECIAL CONDITIONS1.In the event of conflict, the following Special Conditions take precedence over the SubcontractSpecific Conditions which in turn take precedence over the Subcontract General Conditions.2.Conditions contained in the Subcontractor's tender do not form part of this Subcontract, unlessconditions are listed in the attached pre-letting meeting minutes, or as listed here:3.Include any other Special Conditions that modify the Subcontract General Conditions here:Subcontract Agreement – December 2017Page SC5 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncInitials SubcontractorInitials Contractor
SUBCONTRACT GENERAL CONDITIONSSECTION 11.11.2INTERPRETATION AND DEFINITIONSInterpretation1.1.1In this Subcontract all words and expressions have the same meaning as those words orexpressions (or equivalent words or expressions) in the Head Contract unless otherwisedefined or required by context.1.1.2Words using the singular also include the plural and vice versa where the context requires.1.1.3Words using the masculine also include the feminine and vice versa where the contextrequires.1.1.4The headings in this Subcontract are for convenience only and do not affect the interpretationof this Subcontract.1.1.5All references to clauses are references to clauses numbered in the Subcontract GeneralConditions and not to those in any other document forming part of this Subcontract unlessotherwise stated.DefinitionsAct of Insolvency means that any of the following events occurs in relation to a party to thisSubcontract:a)it becomes bankrupt; orb)it is placed in liquidation or voluntary administration; orc)a receiver or statutory manager is appointed in respect of it,and the assignee, liquidator, voluntary administrator, receiver or statutory manager fails within 10Working Days to make arrangements satisfactory to the other party for the performance of itsobligations under this Subcontract.Additional Documents means those documents listed in the Subcontract Specific Conditions.Engineer means the Engineer, Architect or other supervising authority who may be appointed fromtime to time under the Head Contract.Head Contract means the contract between the Principal and the Contractor.Head Contract Works means the works defined in the Head Contract.Subcontract means the whole of the contract between the Contractor and Subcontractor.Subcontract Works means the works the Subcontractor has agreed to complete under thisSubcontract.Subcontract Sum means the sum stated in this Subcontract Agreement to be paid for completion ofthe Subcontract Works, subject to any adjustments provided for in this Subcontract.Supply Only Subcontract means a Subcontract where the Subcontractor is required to supplymaterials, finished goods, or other items to the site but is not required to fix, place, or install them.Working Day, unless defined otherwise in the Head Contract, means any day other than a Saturday,a Sunday, a public holiday, or any day within the period between and including 24 December to 5January, irrespective of the days on which work is actually carried out.Subcontract Agreement – December 2017Page GC1 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncInitials SubcontractorInitials Contractor
SECTION 22.1Head Contract2.1.12.2The Subcontractor has the same obligations and liabilities to the Contractor for SubcontractWorks, as those imposed on the Contractor by the terms of the Head Contract, except asmodified in this Subcontract.Subcontractor’s Tender2.3.12.4The Subcontractor agrees to comply with all the provisions of the Head Contract that apply tothe Subcontract Works, except as specifically varied by this Subcontract. All the powers andobligations of the Principal and Engineer, under the Head Contract, extend to thisSubcontract and must be exercised by the Contractor. In the event of ambiguity or conflict,the terms of this Subcontract take precedence over the terms of the Head Contract.Subcontract Works2.2.12.3CONTRACTSTerms or conditions contained in any tender or form of offer do not form part of thisSubcontract, except where those terms or conditions are also contained in the SubcontractSpecific Conditions.Signing2.4.1The Subcontractor must initial each page and sign both copies of this Subcontract Agreementand return them to the Contractor prior to the first progress payment being made. Each partymust retain one signed copy. If this Subcontract is signed after the commencement of theSubcontract Works, the terms and conditions apply retrospectively from the date ofcommencement of the Subcontract Works.Subcontract Agreement – December 2017Page GC2 Registered Master Builders Association of New Zealand Inc/New Zealand Specialist Trade Contractors Federation IncInitials SubcontractorInitials Contractor
SECTION 33.1Performance Bond3.1.13.2If required by the Subcontract Specific Conditions, the Subcontractor must provide theContractor with a performance bond for the amount stated in the Subcontract SpecificConditions. The form an
The Subcontract Specific Conditions should contain all the contract information that parties require for pricing and signing of the contract. The tables in the Subcontract Specific Conditions provide a basis to confirm the specific obligations of the parties referred to in the
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Hellenistic culture, a blend of Greek, Persian, and Indian traditions was created. crumbled, but his cultural legacy lasted for centuries. 1. Who did Alexander the Great conquer? 2. What is Hellenistic culture? 3. Identify one way Alexander the Great spread Hellenistic culture? 1. Why was Alexander so successful as a general and ruler? 2.
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