A structured matrix for scoring and tracking contract risk across seven key areas — payment, retention, liquidated damages, design liability, insurance, termination, and dispute resolution. Built from real UK subcontract review experience.
Payment clause risks are the most common source of cash-flow problems on UK subcontracts. Work through each item carefully.
Retention terms affect your cash flow for the full duration of the project and often for 12 months beyond. Review each clause carefully.
Liquidated damages clauses are one of the most significant commercial risks for subcontractors. Assess both the rate and the trigger.
Design liability carries professional indemnity insurance implications and can significantly exceed the value of the subcontract. Assess it carefully.
Insurance obligations must be checked against your current policy schedule before signing. Non-compliance can invalidate the contract and expose you to uninsured claims.
Termination clauses affect your ability to exit a contract when the main contractor is in default. Asymmetric termination rights are a significant risk.
Dispute resolution clauses determine how and where you pursue or defend claims. Onerous arbitration clauses can make it commercially unviable to recover small sums.
Download the matrix and open it alongside your subcontract draft. Work through each section in order — do not skip ahead.
For each item, mark the status: Acceptable / Needs amendment / Missing / Not applicable. Use the guidance notes to understand what to look for.
Flag all items marked 'Needs amendment' or 'Missing' as commercial issues to raise with the main contractor before signing. Do not sign with unresolved high-risk items.
Use the risk level indicators to prioritise your negotiation effort — focus on high-risk items first, as these represent the greatest financial exposure.
Once amendments are agreed, re-run the matrix against the revised contract to confirm all issues have been addressed.
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LazyQS reads your subcontract and flags the same risks covered in this matrix — with exact clause references, severity ratings, and recommended amendments. Save hours of manual review.
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