Why the subcontract matters more than the handshake
Subcontracting in Ireland runs heavily on relationships — and relationships are exactly what a good subcontract preserves. Main contractors need scope passed down "back-to-back" so a gap between the main contract and the subcontract doesn't land on them. Subcontractors need payment terms they can actually survive, because the pattern in every downturn is the same: the subbie is the bank until the subbie breaks.
What the agreement must cover
- Scope, back-to-back but readable — the subcontract works package defined by documents, with the relevant main contract terms identified rather than incorporated wholesale by a single sentence
- Price and valuation of variations — who can instruct changes and how they are valued (see variations)
- Payment terms compliant with the Construction Contracts Act 2013 — payment claim dates, response deadlines and the right to refer payment disputes to adjudication cannot be contracted away where the Act applies; "pay-when-paid" clauses are ineffective except in limited insolvency situations
- Retention — percentage, cap and release triggers (explained here)
- Programme and delay — notice requirements for extensions of time, and any liquidated damages passed down
- Insurance and indemnities — matched to what the subbie's policy actually covers; a subbie indemnifying the main contractor beyond their insurance is writing an uninsured cheque (see indemnities)
- Set-off — on what grounds and with what notice the main contractor can deduct
- Termination and site rules — including what happens to materials and plant
For subcontractors: the three clauses to never sign blind
Condition precedent notice clauses — "no notice within 7 days, no extension of time, no money" is enforceable and brutal; diary your notice obligations. Set-off clauses — an unlimited right to deduct for "any claim" converts your invoice into a suggestion. Incorporation by reference — "the subcontractor is deemed to have full knowledge of the main contract" binds you to a document you may never have seen. Ask for it. Read it.
Not being paid?
If you're a subcontractor already chasing money, the Construction Contracts Act's adjudication procedure is fast and effective. Our construction practice runs payment disputes and adjudications: constructionlawsolicitor.ie.
How our fees work
You get a fixed quote in writing before any work starts — no hourly-rate surprises and no meter running while you think. If the scope changes, the quote is revised in writing before we continue. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement. How contract solicitor fees work in Ireland →
Frequently asked questions
Is a pay-when-paid clause enforceable in Ireland?
Where the Construction Contracts Act 2013 applies, clauses making payment conditional on the payer being paid by a third party are generally ineffective, except in limited insolvency circumstances. Many subcontracts still contain them; where the Act applies, they don't do what they say.
Do I need a written subcontract for labour-only subbies?
Yes — and it needs care, because labour-only arrangements sit close to the employment/self-employment boundary, with tax (RCT), insurance and employment-rights consequences if mis-classified. A short written agreement that reflects the real arrangement protects both sides.
What retention is normal on Irish subcontracts?
Commonly in the range of 3–10% with half released at practical completion and the balance after the defects period — but there is no legal standard, and the cap and release triggers matter more than the headline percentage.
The main contractor sent 60 pages. Do I have to accept them?
Everything is negotiable until signed, and the clauses that matter to a subbie are few: payment, set-off, notices, retention, indemnity. A fixed-fee review marks up exactly those, giving you a short, credible counter-list rather than a general objection.
Talk to a solicitor who reads contracts for a living. Call Mary Molloy Solicitors today.
Whether you are drafting terms for your business, handed a contract to sign, or unsure what a clause commits you to, an early conversation costs little and prevents a lot.
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