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We’re always unimpressed by the unfair terms we find in the subcontracts we review for you, our subcontractor clients, before you sign them. Yet we’re particularly appalled by the latest term to land on our MD Richard Hildrick’s desk, which assumes you, the subcontractor, will accept huge losses in the case of another pandemic event.

In respect of a pandemic, pandemic event or series of pandemic events, the extensive clause reads:

‘The Sub-Contract Sum is deemed to include for, and the Sub-Contractor takes the risk of, each and every Pandemic and Pandemic Event (whether occurring before, after or during the commencement of the Sub-Contract Works) and its effect on the Sub-Contract Works, including (without limitation):

?.the Sub-Contractor is responsible for all issues, actions, costs, time and measures arising directly and/or indirectly out of or in connection with a Pandemic Event and the Sub-Contractor shall implement all measures to deal with each and every Pandemic Event without cost to The Contractor;

?.the Sub-Contractor shall be obliged to forthwith comply with and implement any instruction issued by The Contractor in respect of a Pandemic and/or a Pandemic Event without cost to The Contractor and, for the avoidance of doubt, the Sub-Contractor shall not be entitled to any additional payment and/or increase to the Sub-Contract Sum and/or extension of time; and,

?.the Sub-Contract Sum is deemed to include for all and any site closures and/or suspensions and/or changes to the Sub-Contractor Programme and/or Main Contract Programme which will be accommodated and complied with by the Sub-Contractor at no cost or increase to the Sub-Contract Sum and no extension of time shall be given.’

You know to expect unfair demands from your main contractor. Yet the unreasonable nature of this clause is particularly shocking. It makes you completely liable for all risks, which is against the advice of many construction industry bodies who champion a collaborative approach to dealing with pandemic events.

Sign these terms, and you’re accepting huge losses if there’s another pandemic. Though the impact of that may be less harmful to you than your experience during the Covid crisis it could, of course, be much worse.

The industry landscape is always changing, and with that comes even more shocking subcontract terms that main contractors are expecting you, the hard-working subcontractor, to sign. To keep one step ahead of your main contractor and make sure you’re always rejecting terms that don’t treat you fairly, talk to us here at RJH Commercial Consulting about our contracts review service.

You can also make sure you’re already wary of the unfair terms you might encounter by following Richard on LinkedIn.