The CIP Short Form of Subcontract is an excellent, easy to use yet comprehensive simple form of subcontract. It can be recommended for use by both main contractors and sub-contractors alike.
The Short Form of Subcontract is suitable for use with most standard forms of main contract including JCT but has the added benefit that it can also be used in conjunction with almost all main contracts.
Its use is primarily aimed at commonly incurred small scale sub-contract works of a straightforward nature rather than complex sub-contracts. It also contains provision for simple packages of work where the design is to be completed by the sub-contractor.
The Short Form of Subcontract itself is a simple yet comprehensive subcontract agreement that sets out all the necessary terms governing the agreement between the main contractor and sub-contractor.
It has two sections, the first of which contains introductory wording and needs to be completed with specific information to the particular sub-contract . The second contains the contract conditions which do not require any information to be completed.
Importantly for main and sub-contractors alike, the payment provisions have been drafted as simply as possible to comply with the Construction Act, as subsequently amended. Under Clause 8.1, the sub-contractor submits an application for payment on a monthly basis which falls due for payment 28 days after the application unless a Pay Less notice is served by the main contractor.