Retentions cut from JCT sub-subcontract form

The sub-subcontract is described as a simple, straightforward document. It comprises the form of agreement, the conditions and guidance notes, all contained in a total of just 10 pages.

The form is said to be suitable for a sub-subcontract where the main contract is on a JCT form, which has a 'main contractor' regardless of whether the subcontract itself is also a JCT form. But a JCT subcontract is said to be clearly desirable to ensure there is no inconsistency of provisions.

Most of the provisions are self-explanatory. It is noted that "payments are required to be made in full - ie there is no reduction for retention".

Parties are encouraged to seek to resolve any disputes through mediation where direct discussion and negotiation are not successful. There is a sub-clause provision for mediation. But there is no compulsion on either party to go to mediation. Either party is entitled to refer a dispute to adjudication at any time.

The subcontractor is required to agree with the sub-subcontractor as to how health and safety issues will be tackled. This may involve compliance with the CDM Regulations and the development of, for example, risk assessments, method statements and COSHH assessments.

In order to keep the document both simple and short, a number of matters relating to the sub-subcontract are required to be set out in the pricing document. These include dayworks and fluctuations payments, insurances, attendances, programme information and design requirements.