Contract Review

DEMO MODE

Coverage: Extracted pages 128 / 128

Executive Summary

Portview Fit-Out — M&E Subcontract (Deed)

RecommendationNegotiate Before Signing

Client

Portview Fit-Out Limited (Main Contractor)

Contractor

CFE Installations (Sub-Contractor)

Contract value

£457,274.95 (Sub-Contract Sum)

Risk rating

UNACCEPTABLE

Key Contract Details

(Subcontractor Focus)

Detail	Value	Explanation
Contract Type (JCT/NEC)	Bespoke Portview Sub-Contract (deed) with Main Contract Flow-Down	This is a custom contract form (not a standard JCT/NEC). Flow-down can import risks from the main contract. Ask to see the main contract terms before signing.
Start Date	18/10/25 (Commencement Date in Table)	Start date is stated, but the programme can be revised. Confirm how you get cost/time if instructions change the sequence.
Completion Date	TBC / inconsistent drafting in particulars	If completion is not fixed, you may be held to a later instruction without fair adjustment. Push for a fixed date or a clear mechanism.
Contract Value Type	Lump sum with re-measurement capability	Clarify what triggers re-measurement and how variations are valued. Ensure exclusions/assumptions are clearly recorded.
Retention	5%	Retention is standard, but check release timing (e.g., half at PC, half at end of defects). Try to negotiate earlier release.
Payment Terms	45 days from valuation date (Pay Less Notice regime)	45 days is longer than the standard 30 days. If you accept it, price the financing cost or negotiate shorter terms.
Liquidated Damages (LADs)	Linked to main contract (rate not clearly stated in subcontract)	If LADs flow down, you may face high late damages. Ask for the LAD rate and ensure EOT and entitlement are fair.
Design Responsibility & Warranties	Design responsibility for M&E + 12-year collateral warranties	This extends liability beyond defects. Check PI insurance, warranty wording, and any fitness-for-purpose language.
Defects Period (when it runs from)	24 months from Practical Completion	24 months is longer than typical 12 months. Consider the cost of call-backs and negotiate to 12 months where possible.

Important points to note

Payment is 45 days from valuation — longer than typical. Consider cashflow and financing cost. (Subcontract Terms • Pg 12, Cl 7.2)

No liability cap found — exposure could exceed contract value. (Amendments Schedule • Pg 24, Cl 15.1)

Completion date is unclear / TBC — risk of programme pressure and LADs without certainty. (Contract Particulars • Pg 2, Cl Schedule)

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