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Labour Only Subcontract Agreement

Document Type
Microsoft Word (Editable)
Pages
4
Price: KES 400
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Document Overview

A Labour-Only Subcontract Agreement is a legally binding contract between a main contractor and a subcontractor, where the subcontractor provides only labour (manpower) for specific construction works, while all materials and equipment are supplied by the main contractor.

Purposes:

1. Define Responsibilities – Clearly outlines what work the subcontractor must perform and under what conditions.

2. Set Payment Terms – Specifies how, when, and how much the subcontractor will be paid for labour services.

3. Ensure Quality and Safety – Establishes quality standards, safety compliance, and supervision requirements.

4. Protect Both Parties – Minimizes disputes by defining terms for termination, liability, and dispute resolution.

5. Legal Compliance – Ensures both parties adhere to Kenyan labour laws and statutory obligations (NSSF, NHIF, PAYE, etc.).

Key Components:

1. Parties to the Agreement – Names and details of the contractor and subcontractor.

2. Scope of Work – Clear description of tasks to be completed by the subcontractor.

3. Duration – Start and completion dates for the works.

4. Payment Terms – Labour rates, milestones, and payment schedules.

5. Materials and Equipment – Confirms the contractor supplies materials.

6. Quality and Supervision – Standards of workmanship and inspection rights.

7. Safety and Conduct – Requirements for site safety and worker behaviour.

8. Statutory Obligations – Responsibility for tax and employee compliance.

9. Termination Clause – Grounds and procedures for ending the contract.

10. Dispute Resolution – Procedures for resolving conflicts (negotiation, arbitration).

11. Execution Section – Signatures of both parties and witnesses to formalize the agreement.
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