Construction subcontract review.
Back-to-back risk, simplified.
Construction subcontracts inherit risk from head contracts most subcontractors have never read. Kontractually checks back-to-back flow-down, Security of Payment compliance, LD exposure, and variation approval processes against your subcontract playbook.
No credit card required. First 3 reviews free.
6 provisions to review in every construction subcontract.
Back-to-back flow-down means the subcontract attempts to impose the same risk and obligations on the subcontractor as the head contractor faces in the head contract. In practice, this often means a subcontractor accepts LD exposure, latent condition risk, and retention terms from a head contract they have never seen, in proportion to their scope. The critical issue is whether the flow-down is truly proportionate - applying the same protection and the same risk - or whether it only flows down obligations without flowing down the corresponding rights.
Yes. Security of Payment Acts in every Australian state and territory apply to all construction subcontracts. The Acts impose strict timeframes: payment claims must be made by a specified reference date (usually monthly), the head contractor must respond with a payment schedule within 10-15 business days (depending on state), and adjudication applications must be lodged within strict windows. Missing any of these deadlines forfeits your rights. Kontractually checks subcontracts for SOPA-compliant payment term structure.
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