Subcontract agreement, electrical package, Little Wren Early Learning, Woolloongabba

Subcontractor agreement template that flows the head contract down

A subcontract exists to pass the head contract's obligations down one level and move the money back up on time. This one names the scope by drawing, sets the progress claim dates against the security of payment rules, holds retention and states the insurances, so the trade knows exactly when it is paid and for what.

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Subcontract SC-04
Dated 12 October 2026

Electrical package, Little Wren Early Learning

Between Marlow Constructions Pty Ltd, head contractor, and Voltline Electrical Pty Ltd, subcontractor · 18 Balaclava Street, Woolloongabba QLD 4102

Prepared by
Marlow Constructions Pty Ltd
Date
Dated 12 October 2026
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Parties

This subcontract is made on 12 October 2026 between Marlow Constructions Pty Ltd ABN 51 204 887 316, QBCC licence 1178342, called the Head Contractor, and Voltline Electrical Pty Ltd ABN 78 442 190 655, electrical contractor licence 89114, called the Subcontractor. The project is the Little Wren Early Learning childcare centre at 18 Balaclava Street, Woolloongabba, and this is subcontract SC-04, the electrical package.

Schedule
Item
Value
Subcontract sum, lump sum
$148,600 plus GST
Retention
5% of each claim, to a maximum of $7,430
Defects liability period
12 months from practical completion
Liquidated damages
$600 per day, capped at 5% of the subcontract sum
Site hours
6.30 am to 4 pm, Monday to Friday
1. Scope of works
1.1
The works
The Subcontractor performs the electrical package for the project: mains and submains, distribution boards, general power and lighting, exit and emergency lighting, and the kitchen and plant room circuits, all as shown on the drawings in clause 1.2 and to AS/NZS 3000.
1.2
The drawings
The works are defined by the following drawings, at the revision listed. A later revision applies only when issued under clause 3.2 as a variation or confirmed as no cost change.
Drawing
Revision
Title
E-01
C
Site plan and mains route
E-02
C
Ground floor power
E-03
D
Ground floor lighting
E-04
B
External and playground lighting
E-05
C
Distribution board schedules
E-06
B
Exit and emergency lighting
E-07
A
Kitchen and plant room services
Drawing
Revision
Title
E-01
C
Site plan and mains route
E-02
C
Ground floor power
E-03
D
Ground floor lighting
E-04
B
External and playground lighting
E-05
C
Distribution board schedules
E-06
B
Exit and emergency lighting
E-07
A
Kitchen and plant room services
Drawing
Revision
Title
E-01
C
Site plan and mains route
E-02
C
Ground floor power
E-03
D
Ground floor lighting
E-04
B
External and playground lighting
E-05
C
Distribution board schedules
E-06
B
Exit and emergency lighting
E-07
A
Kitchen and plant room services
1.3
Exclusions
Data cabling, the security and access control system, and temporary builder’s power are excluded and remain with the Head Contractor.
1.4
Standards and approvals
The works comply with AS/NZS 3000 and the National Construction Code. The Subcontractor provides certificates of testing and safety at practical completion.
1.5
Coordination
The Subcontractor coordinates with the other trades through the weekly site meeting, and marks up services before pouring or sheeting closes them in.
2. Head contract
2.1
Flow down
The Subcontractor is bound by the terms of the head contract so far as they apply to the works, as if written here. The relevant head contract clauses are Annexure A.
2.2
Order of precedence
If documents conflict, the order is: this subcontract, then the Schedule, then the drawings in clause 1.2, then Annexure A. A conflict is raised in writing before the affected work proceeds.
3. Price and variations
3.1
Lump sum
The price is the lump sum in the Schedule, $148,600 plus GST. It includes supervision, consumables, testing and the certificates in clause 1.4.
3.2
Variations in writing, before the work
A variation has effect only if issued in writing before the varied work starts, priced from the rates below or by agreed lump sum. Work done without a written variation is at the Subcontractor’s cost.
Rate item
Unit
Rate
Electrician
Hour
$98
Apprentice
Hour
$52
Materials
Cost
Cost plus 12%
4. Progress claims and payment
4.1
Four claims
The Subcontractor claims on the last business day of the month against the milestones below. Each payment claim must state it is made under the Building Industry Fairness (Security of Payment) Act 2017 (Qld).
Claim
Date
Milestone
Amount
1
30 Nov 2026
Rough in complete
$44,580
2
26 Feb 2027
Fit off complete
$59,440
3
31 Mar 2027
Testing and commissioning
$29,720
4
30 Apr 2027
Practical completion
$14,860
Total
Subcontract sum
$148,600
4.2
Payment
The Head Contractor pays a valid claim, less retention, within 15 business days of receiving it. Amounts are plus GST, and payment of a claim is on account only, not acceptance of the work.
The clock in the act
Under the Queensland security of payment regime, a respondent who disputes a payment claim must give a payment schedule within the time the act allows. Miss the deadline and the claimed amount becomes payable in full, with adjudication open to the Subcontractor. The claims table exists so this clock is never in doubt.
The clock in the act
Under the Queensland security of payment regime, a respondent who disputes a payment claim must give a payment schedule within the time the act allows. Miss the deadline and the claimed amount becomes payable in full, with adjudication open to the Subcontractor. The claims table exists so this clock is never in doubt.
The clock in the act
Under the Queensland security of payment regime, a respondent who disputes a payment claim must give a payment schedule within the time the act allows. Miss the deadline and the claimed amount becomes payable in full, with adjudication open to the Subcontractor. The claims table exists so this clock is never in doubt.
5. Retention
5.1
Five percent, released in halves
The Head Contractor retains 5 percent of each progress claim until the retention held reaches $7,430. Half is released with the practical completion claim, and the balance at the end of the defects period, less the cost of any defect not rectified under clause 9.
6. Programme

The Subcontractor starts on site on 2 November 2026 and works to the programme below. If the works fall behind through the Subcontractor’s fault, liquidated damages in the Schedule apply from the date for practical completion.

2 November 2026
Start on site
11 December 2026
Rough in complete
12 February 2027
Fit off complete
30 April 2027
Testing and practical completion
7. Site
7.1
Induction and sign in
Every worker completes the site induction before starting and signs in daily. The sign in record supports each progress claim.
7.2
WHS management plan
The Head Contractor’s WHS management plan applies to the works, and the Subcontractor complies with it and with every lawful direction of the site manager.
7.3
Safe work method statements
Before starting any high risk construction work, the Subcontractor gives the Head Contractor a SWMS for it and works to that statement. Work outside a SWMS stops until corrected.
8. Insurances
Policy
Minimum cover
Held by
Public liability
$20 million
Subcontractor
Workers compensation
As required by law
Subcontractor
Contract works
Full contract value
Head Contractor
Professional indemnity
Not required
Not applicable

The Subcontractor provides certificates of currency before starting on site and whenever a policy renews during the works.

9. Defects
9.1
Rectification
During the 12 month defects period the Subcontractor rectifies any defect within 10 business days of written notice, failing which the Head Contractor may rectify it and recover the cost from retention or as a debt.
10. Suspension and termination
10.1
By the subcontractor
The Subcontractor may suspend work under the act if a scheduled amount is unpaid, after giving the notice the act requires. If non payment continues for 20 business days after that notice, the Subcontractor may terminate this subcontract.
10.2
By the head contractor
The Head Contractor may terminate if the Subcontractor becomes insolvent, abandons the works, or persistently breaches this subcontract and does not remedy it within 10 business days of notice.
11. Dispute resolution
11.1
Talk first
A dispute is referred to a meeting of both parties’ nominated representatives within 5 business days of written notice of it.
11.2
Payment disputes
A dispute about a payment claim may be taken to adjudication under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) at any time, and this clause does not limit that right.
11.3
Everything else
Any other dispute unresolved 10 business days after the meeting goes to mediation in Brisbane before either party may start proceedings, except urgent injunctive relief.
12. General
12.1
Assignment and subcontracting
No assignment or subcontracting of the whole works without written consent.
12.2
Notices
Notices are in writing, by email, effective when sent on a business day.
12.3
Governing law and entire agreement
Queensland law governs. This subcontract, its Schedule, the drawings and Annexure A are the entire agreement.
Annexure A

Head contract clauses that flow down, listed by title: quality and samples, site working hours, confidentiality, and the principal’s step in rights. The full text is attached to the signed copies.

Executed as an agreement. Each signatory warrants they are authorised to sign for the party named.

Signed for Marlow Constructions Pty Ltd
Name
:
Position
:
Date
:
Signed for Voltline Electrical Pty Ltd
Name
:
Position
:
Date
:

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

Parties
Both companies with ABNs, the QBCC and electrical licence numbers and the site.
Schedule
Sum, retention, defects period, liquidated damages and site hours in one table.
1. Scope of works
Five clauses and a register of seven drawings with revisions, plus exclusions.
2. Head contract
Flow down of the head contract terms and the order of precedence.
3. Price and variations
Lump sum, written variations before the work, and an hourly rates table.
4. Progress claims and payment
Four dated claims totalling $148,600 and a callout on the statutory clock.
5. Retention
Five percent of each claim, capped, released in halves.
6. Programme
A four milestone timeline from start on site to practical completion.
7. Site
Induction, daily sign in, the WHS plan and a statement before high risk work.
8. Insurances
Four policies with minimum cover and who holds each.
9 to 12. Defects and general
Rectification in 10 business days, termination, disputes, governing law.
Annexure and signatures
Flow down clauses by title and a signing block for each party.

Clauses in this document

Security of payment in plain words

Each state has an act that gives a subcontractor a fast route to money. The subcontractor serves a payment claim that says it is made under the act. The other side has a limited number of business days to reply with a payment schedule saying what it will pay and why. Miss that deadline and the claimed amount becomes payable, with adjudication open to the claimant. Adjudication is quick and the determination is enforceable, which is why the claim dates in clause 4 are fixed to the last business day of the month instead of being left to whoever remembers.

How to adapt this document

For a labour only subcontract, delete the lump sum and retention clauses, keep the rates table as the price, and claim weekly against timesheets. For a design and construct trade, add professional indemnity to the insurance table and a design responsibility clause, since the flow down then carries design risk. For residential work, check the home building legislation in your state before reusing this: retention, defects and termination are regulated there in ways a commercial subcontract is not.

What makes this document work

Four progress claims with a date, a milestone and an amount

Rough in at $44,580, fit off at $59,440, testing at $29,720 and practical completion at $14,860, adding to the $148,600 subcontract sum. Cash flow sits on page three of the contract instead of in an email thread, and every claim has a milestone that can be inspected.

Retention is capped and released in halves

Five percent of each claim to a maximum of $7,430, half released at practical completion and half at the end of the twelve month defects period. Uncapped retention with no release dates is where most trade disputes start, so both numbers and both dates are in the schedule.

The insurance table names who holds each policy

Public liability at $20 million and workers compensation sit with the subcontractor, contract works with the head contractor, professional indemnity not required. Four rows settle the argument that usually happens after an incident, and certificates of currency are due before anyone starts on site.

Questions people ask

What is the difference between a contractor and a subcontractor agreement?

A contractor agreement stands alone between a client and the trade. A subcontract sits under a head contract and pushes its terms down, which is why this one adds flow down, retention, progress claims and site control. The contractor agreement example is the version to use when there is no head contract above you.

What is retention on a construction contract?

A percentage held back from each progress claim as security that defects get fixed. Five percent is common, and this subcontract caps the total at $7,430, releases half at practical completion and the balance after twelve months. Without a cap and two release dates, retention is money with no return date.

When does a subcontractor have to be paid?

The state security of payment acts set the outside limits, and the contract sets anything shorter. Here payment is due within 15 business days of a valid claim. A payment claim under the Queensland regime must say so, and a respondent who disputes it has to answer with a payment schedule inside the statutory window.

Can a subcontractor claim for variations?

Under clause 3.2, only if the variation is issued in writing before the varied work starts, priced from the rates table or an agreed lump sum. Verbal variations are the single biggest loss on trade packages, because the argument happens months later when nobody can produce a document.

What insurances does a subcontractor need?

Public liability, at $20 million here, and workers compensation if they employ anyone. Contract works is usually the head contractor's policy, and professional indemnity only matters where the trade designs. Certificates of currency go in before starting and again at every renewal during the works.

Is a safe work method statement part of the contract?

Clause 7.3 makes it one. Before any high risk construction work the subcontractor gives the head contractor a statement for it and works to it, and work outside a statement stops until it is corrected. The safe work method statement example shows what that document looks like.

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Sources

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