The ConsensusDocs Coalition just published the new Standard Master Subcontract Agreement Between Constructor and Subcontractor and the Standard Project Work Order. The master agreement (ConsensusDocs 755) provides the general terms and conditions between a Constructor (general contractor, design builder, construction manager) and a Subcontractor. The 755 addresses terms and conditions such as indemnification, notice requirements, and dispute resolution. The project work order (ConsensusDocs 756) provides project specific information that addresses project specific terms such as contract price, bond requirements, and subcontract work scope. Together, the 755 and 756 form a complete subcontract agreement for each subcontract scope of work.
These contract documents allow for more efficient contract negotiations, because a General Contractor and a Subcontractor often contract with one another on multiple projects. Parties negotiate the terms and conditions of their working relationship once, and then issue individual project work orders multiple times. The new master subcontract approach will allow parties to spend less time and reduce transactional costs of legal counsel’s review for every subcontract, because the legal terms are fixed.
These new documents are available to all Full Package and Subcontracting Package subscribers. The risk allocation terms and conditions in the 755 and 756 are consistent with the ConsensusDocs 750 Standard Subcontracting Agreement.
Source: Associated General Contractor
