Construction Lawyer & Building Solicitors Sydney | Contracts Specialist Law Firm

Subcontract Statement:
When do you need to accomplish one?

Whether you're the principal contractor or subcontractor, you must accomplish a subcontract agreement statement.

Learn more and call Contracts Specialist for legal advice on how to protect your rights.

Purpose of the Subcontract Statement

The subcontract statement is a contract between a principal contractor (usually a builder) and subcontractor. This done to comply with three laws, which are the Workers Compensation Act 1987, Payroll Tax Act 2007, and the Industrial Relations Act 1996.

The subcontractor statement gives you power as a subcontractor to have the right to:

  • Work on the principal contractor’s construction project;
  • Be rightfully compensated for working on said project and;
  • Take full responsibility in case of non-compliance to the law;

If you enter to this kind of agreement and fail to provide your principal contractor this agreement form, then these rights and responsibilities would be back to the principal contractor. However, if the principal contractor receives the form and declares that the information you stated in the form is false, then you may be subject to an offense that could be up to 100 penalty units in accordance to the Industrial Relations Act 1996.

Instances where you will need the Subcontractor Agreement

If you are a subcontractor for a specific building project and you want to make sure that you will get paid for it, then you would need to accomplish this. Principal contractors must always require their respective subcontractors to provide them with this agreement to keep track on what compensations that they would need to provide as part of their contractual obligations. So, a payment claim or a certificate of currency is usually included with the subcontract agreement to ensure this.

How to Fill out the Subcontract Agreement Form?

The Subcontractor Agreement form is available in the New South Wales (NSW) government website. This statement is a one-page form that states that as a subcontractor, you agree to the following:

  • You have employed workers during the time of the contract;
  • You have paid and compensated them with the appropriate insurance premiums;
  • You have paid renumeration- or the amount payable relevant to the employees of the project;
  • You have paid your employees with their respective payroll taxes for their work and;
  • You have been given a written statement relieving the principal contractor from liability, if you are also a principal contractor in connection to the project

Since the statements that you would need to agree in the form would depend on the contract with your principal contractor, just tick the statements that apply and fill out the necessary information needed in the form.

If you are still confused or you still need help on how to uphold your legal and contractual right as a subcontractor to be paid under the Security of Payment Act, you may refer to the notes included in the form or call our construction lawyers for more expert legal advice on the matter.