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What is a Subcontractor’s Statement?
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For instances that you would need help for your building project, it is important to have a construction contract at hand, especially a subcontractor agreement to ensure that you get legal rights whatever role you are playing in the building project. Accomplishing a principal contractor-subcontractor agreement is a common practice for commercial builders, but could be overwhelming for a small to the medium-sized construction business. But, you can easily accomplish it by just filling out the necessary information in the statement and taking on those commercial projects.
Learn more and don’t hesitate to call our construction lawyer in Melbourne if you need help on your own agreements.
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Why get a Subcontractor's Statement?
A subcontractor’s statement serves as an agreement between a principal contractor (usually a building practitioner working on commercial projects) and a subcontractor. It is a statutory declaration regarding payments made to the subcontractors. A subcontractor’s statement must be made under the Evidence Act 1958 (VIC) and must comply with various employment and building laws, such as the Workers Compensation Act 1958 (VIC), the Payroll Tax Act 2007 (VIC), and the Occupational Health and Safety Act 2004 (VIC).
This also gives you power as a subcontractor to have the right to:
- Commence work on what is stated in the contract;
- Get paid right for working on the building project; and
- Be responsible for any defects or delays that may happen during construction.
If you are engaged in a building project as a subcontractor and fail to make an agreement with your principal contractor, then these rights and responsibilities would be back to them. However, if there is false information in your statement, then you may be subject to penalties.
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When to get a Subcontractor Agreement?
You will need this agreement if you are a subcontractor for a specific building and construction project. Principal contractors must ensure that an agreement is in place to keep track of compensation due to you for the work you have done. So, keeping track of how the contract is being enforced is usually done by issuance of a payment claim.
Filling out a Subcontractor's Statement
There are various forms and templates of a subcontractor’s statement that you can use to have an agreement with your contractor. You can seek the help of a construction lawyer to help you draft or review your existing one which usually includes the following clauses:
- Whether you employed workers during the time of the project;
- Whether you and your workers got paid and compensated with the appropriate insurance;
- If you have paid your employees remuneration;
- If you have paid the respective payroll taxes relevant in the project; and
- A written statement that relieves the principal contractor from being liable if you are also a principal contractor in the project.
The statements that you would need to agree on with your contractor would depend on the actual construction contract, so you would add the necessary information needed and sign the agreement.
If you need to enter a big project and you are unsure of your rights as a subcontractor, our construction lawyers in Melbourne can surely help you draft and review your construction contracts. Book your consultation with us and rest assured that our construction lawyers will provide expert legal advice.
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