TERMS OF ENGAGEMENT FOR SUBCONTRACTORS

The contract of service is made between: -

1. SHMS Contracting Ltd (“SHMS”) (Company Reg. 6846409) or SHMS Contracting (Southern) Ltd (Company Reg. 08827694) whose Registered Office is situated at SHMS House, 20 Little Park Farm Road, Fareham, Hampshire, PO15 5TD. (the Contractor) and


2. Services Background

2.1 SHMS’s business is in the provision of Construction services which it provides its clients.

2.2 The Subcontractor provides services which may be of use to SHMS from time to time.

2.3 Both parties agree that if SHMS choose to engage the Subcontractor for the provision of services then the following terms and conditions will apply.


3. Provision of Services

3.1 SHMS is under no obligation to, and provides no guarantee to, provide the Subcontractor with any work whatsoever.

3.2 The Subcontractor is under no obligation to provide any services to SHMS at any time and is free to decline to provide any services at any time.

3.3 Both parties agree and intend that if the Subcontractor undertakes any services for or on behalf of SHMS they do so as an independent business in their own right under a contract for services and not under a contract of employment or any other kind of contract.

3.4 The Subcontractor is free to provide services to any other parties at any time.

3.5 As  an  independent  business  the  Subcontractor  is  free  to decide how best they provide the services, and will not be under the control of SHMS as to their method of performance.

3.6 The Subcontractor will not be subject to supervision, direction or control as to the manner in which they provide the services, and for the avoidance of doubt no party in the contractual chain shall have any right to supervise, direct or control how the subcontractor provides the services.

3.7 If the Subcontractor cannot, or does not want to, provide services they are free to send another suitably qualified and experienced individual in their place to perform the services if they so choose.

3.8 If the Subcontractor does choose to send such substitute in their place, any contractual agreement, including payment, will be a matter between the Subcontractor and their substitute. SHMS has no contract with any substitute and accepts no responsibility for any substitute the Subcontractor chooses to utilise.

3.9 The Subcontractor is responsible for their own equipment and Personal Protective Equipment.

3.10 The Subcontractor is responsible for their own insurances and will provide a copy of the relevant insurance document to SHMS.

3.11 The Subcontractor agrees to provide the services to the best of their ability and to the standard reasonably expected of a competent tradesperson. If in SHMS’s, or SHMS’s clients’, opinion the Subcontractor (or any of its substitutes) has provided defective or substandard services, SHMS reserves the right to require the Subcontractor to pay the costs/loss arising from any substandard provision of services.


4. Payment for Services

4.1 The Subcontractor will be paid at a rate negotiated between the parties from time to time.

4.2 If the Subcontractor is VAT registered they must provide a copy of their VAT registration certificate before any payments can be made. Due consideration will be given to the VAT domestic Reverse Charge requirements.

4.3 SHMS does not require the subcontractor to provide invoices.

4.4 The services are governed by the Construction industry scheme, as such any payments made to the subcontractor will be subject to deductions as notified to SHMS by HMRC following verification.

 

4.5 To comply with the Construction Industry Scheme the subcontractor must provide such information as is necessary to SHMS in order for SHMS to verify the subcontractor’s payment status with HMRC.

4.6 Any deductions made under the Construction Industry Scheme are for income tax purposes only and do not relate to National Insurance, nor do they replace the subcontractor’s requirement to complete their own tax return.

4.7 In compliance with the Construction Industry Scheme SHMS will provide the subcontractor with a remittance advice, on a weekly / fortnightly / monthly basis, detailing all payments and deductions.

4.8 SHMS is under no obligation to make any payment to the Subcontractor. The Subcontractor is not entitled to receive payment for any period where services are not provided, or for any cancelled works regardless of any reason as to why works are cancelled.

4.9 SHMS reserves the right to deduct any costs and charges notified to the Subcontractor under any clause in this contract, against any monies payable to the Subcontractor.

4.10 The Subcontractor is responsible for the costs of their own travel to and from location and any expenses incurred. SHMS is under no obligation to reimburse any expenses.

4.11 The Subcontractor is engaged as a self-employed Subcontractor and understands and agrees they are not entitled to any statutory payments or employee style benefits such as holiday pay, sick pay, maternity/paternity pay or any other payment of any kind.

5. Termination of Services

5.1 Either party may terminate this contract for services at any time without notice and without financial penalty.

6. Other Applicable Provisions

6.1 The Subcontractor will not hold them self out to be an employee or representative of SHMS. Both parties acknowledge however that given the nature of the services provided there may be times where, due to regulations or conditions imposed by governing bodies for the protection of the general public (such as Health & Safety and Security), which are outside of the authority of Subcontractor, SHMS or its client to not follow, the Subcontractor may need to be identifiable as a subcontractor of SHMS.

6.2 While the Subcontractor’s method of work is their own the Subcontractor acknowledges there may be times where they must have regard to Health and Safety requirements imposed by statute, which are outside of the Subcontractor’s, SHMS’s or SHMS’s Clients’ authority, in so far as they are reasonably applicable to them when providing the Services.

7. Whole agreement

7.1 Save as where expressly provided in this contract for services, the terms and conditions represent the whole agreement between SHMS and the Subcontractor when the Subcontractor provides their services, and supersedes any other written or verbal contract, agreement, arrangement or understanding.

7.2 Any amendment to this Contract for Services will only take effect with agreement in writing by both parties.

7.3 Failure by SHMS to exercise its rights against any specific contractual breach of this contract does not constitute acceptance of that breach, any future breaches or any breach of any other contractual term.

7.4 Breach of any specific contractual term of this contract does not invalidate or nullify any other contractual term contained within this contract.

7.5 By signing this Contract for Services the Subcontractor agrees and confirms they have fully read and understood the terms and conditions in this contract and has had opportunity to seek legal advice before signing.

8. Jurisdiction

8.1 This contract for services is governed by English Law and any dispute relating to this contract for services will be subject to the jurisdiction of the English Tribunals and Court system.