These contract documents allow for more efficient contract negotiations, as a general contractor and a subcontractor often enter into contracts with each other on multiple projects. The parties negotiate the terms of their employment relationship once, and then issue individual work orders on the project several times. The new master subcontract approach will allow parties to spend less time and reduce the transaction costs of reviewing by legal counsel for each subcontract as legal terms are set. The ConsensusDocs Coalition has just published the new standard subcontracting framework agreement between builder and subcontractor and the standard work order of the project. The framework agreement (ConsensusDocs 755) contains the general conditions between a customer (general contractor, builder, site manager) and a subcontractor. 755 deals with conditions such as compensation, notification requirements, and dispute resolution. The project work order (ConsensusDocs 756) provides project-specific information that addresses project-specific conditions such as contract price, obligation requirements, and scope of work for subcontracts. Together, the 755 and 756 form a comprehensive subcontracting agreement for each subcontracting scope. Brian Perlberg, Executive Director of ConsensusDocs, will welcome Joe McAllister of Hughes Construction and Kevin Peartree of Ernstrom and Dreste for a free webinar on August 1 at 2 p.m.m. ET. The webinar shows how and when new contract documents as well as outsourcing best practices should be used in terms of compensation, financial information about the project, release of lien and more. Click here to register, which includes a free recording even if you can`t attend live. By: Brian Perlberg, Executive Director, ConsensusDocs These new documents are available to all full package and outsourcing package subscribers.
The risk allocation conditions under conditions 755 and 756 are in accordance with the consensusDocs 750 standard subcontracting agreement. .