8.2.2 Withholding – “The withholding rate is – per cent, which is the percentage of the designer`s payment for subcontracting work. Where the subcontracting work is satisfactory and the main agreement provides for a reduction in the deduction, the deduction of the subcontractor is also reduced if the deduction of the subcontracting work by the contractor has been reduced. ConsensusDoc`s subcontracts depend on the agreement between the owner and GC. Ask for a copy of the agreement between the owner and GC so that you know when payment is expected between them and what additional conditions you agree. If the GoC believes you are not paying your pennies or suppliers, the GC can send you a written notification and then take whatever steps they deem appropriate to ensure that payments are made to your suppliers. One way to do this is by the joint control carried out by both the subcontractor and its subcontractor or supplier. If you do not provide any evidence that the borrowers have been paid or that they are booking a loan to cover any claims on the project, the GC may withhold payment to cover all claims or deposit fees as well as any regulatory costs. This clause is related to calculation and funding. If a subcontractor wants to sell or use its invoices for this project as collateral, the GoC must consent to the transaction. If the party takes into account or funds the project invoices, the agreement with the factoring or financing company must indicate that the funds are subject to receivables from creditors who have provided work or equipment for the workstation for that part. This protects subcontracts and suppliers of lower quality from making appeals if the subcontractor sells its invoices or uses them for warranties. 8.9 Subcontractor`s default – “After payment by the manufacturer, the subcontractor must immediately pay its subcontractors and suppliers the amounts to which they are entitled.
If the designer has reason to believe that the work, equipment or other obligations arising from the performance of the subcontracting work are not paid, the builder may notify the subcontractors in writing of a claim or pledge and take all necessary measures to ensure that progress payments are used to carry out such obligations. , including, but not limited to, the issuance of common controls. When the subcontractor, after receiving the notification (a) of the manufacturer`s satisfaction, does not prove that the payment due was made; or (b) a loan that frees the owner, the designer, the builder`s warranty, if any, and the premises of a claim or pledge, the builder has the right to withhold all payments due or to pay the subcontractor a reasonable amount to protect the builder from any loss, damage or expense, including legal fees that may result or relate to those rights.” Revised in 2017, this subcontracting agreement for long forms provides for a standard agreement for a designer (also a construction contractor, general contractor, designer, site manager) and a subcontractor.