Subcontractor Policy

Purpose: 4 Woods Carpentry and Construction Limited ("the Company") works with various subcontractors to deliver high-quality projects. Our Subcontractor Policy sets out how we select, manage, and collaborate with subcontractors (including self-employed tradespeople and other companies) to ensure safety, fairness, legal compliance, and quality standards. This policy is communicated to all subcontractors who work with us so that expectations are clear. It covers areas such as pre-qualification, contract terms, performance standards, health & safety, payment, and general conduct.

Selection & Pre-Qualification:

We aim to engage competent and reliable subcontractors who share our commitment to quality, safety, and ethical practice. Our process includes:

Due Diligence: Before first engaging a subcontractor, we typically request information about their experience, references from previous clients, and proof of qualifications or trade certifications relevant to their work (e.g., Gas Safe registration for gas engineers, NIC/EIC for electricians, city & guilds/NVQs for trades, etc.). We may also verify they have a track record of similar projects.

Health & Safety: All subcontractors must have and provide a copy of their Health & Safety policy (if they employ five or more staff) or otherwise demonstrate their approach to safe working. We also ask for method statements and risk assessments for their scope of work (more on that below). We favour subcontractors with accreditation or evidence of training (like CSCS cards for individuals, CHAS or SMAS accreditation for companies, etc.) as it provides assurance of their H&S management.

Insurance: Subcontractors are required to hold valid insurance cover appropriate to the work:
- Public Liability insurance (we typically expect a minimum cover of £1 million, though often £2m or £5m for higher risk trades).
- Employer's Liability insurance (if they have employees) as required by law.
- Professional Indemnity insurance if they are undertaking any design responsibility (e.g., a subcontractor designing a structural element).
  We will obtain copies of insurance certificates annually for our records.

Licenses/Legal: We verify any necessary licenses (e.g., waste carrier licence if they remove waste, or scaffolding inspection tickets for scaffold subcontractors, etc.). We also ensure subcontractors (where relevant) are registered under the Construction Industry Scheme (CIS) so we can properly verify them with HMRC. We follow CIS deduction rules when paying subcontractors and keep records of verification and payments as required by HMRC.

Financial and Ethical Checks: For longer-term significant subcontractors, we may do a credit check or Companies House review to ensure they are financially stable (reducing the risk of insolvency mid-project). We also communicate our policies such as our Modern Slavery Statement and ask them to confirm compliance (e.g., no use of forced labour, etc., consistent with our Modern Slavery policy obligations).

Approved List: If a subcontractor meets our criteria and performs well, we add them to our 'approved subcontractors list' for consideration on future projects. This list is reviewed periodically. Inclusion doesn't guarantee work, but preference is given to those who have demonstrated reliability and quality.

Contracts and Work Orders:

Written Agreement: Every subcontractor is engaged under a form of written contract or purchase order that outlines the scope of work, the price or rate, the timeline/program, and reference to terms and conditions. This may be a formal subcontract agreement for larger packages or a simpler work order for small jobs. • We include in these terms clauses on quality standards, change management, safety compliance, confidentiality, and any flow-down obligations from our client contract that affect the subcontractor.
Scope Clarity: The scope document details what is included/excluded, to avoid misunderstandings. For example, if a painting subcontractor is responsible for materials or if we supply them, who handles protection of surfaces, etc.

Schedule: We communicate the project schedule and the subcontractor's responsibilities within it. Subcontractors must agree to perform their work in the timeframe required. If a subcontractor faces delays in their part (due to labour or supply issues), they must inform us immediately so we can coordinate. We expect proactive efforts to recover lost time if they are behind (e.g., working extra hours subject to site rules).

Change Orders: Subcontractors are not to undertake any additional work beyond their agreed scope without a written instruction (variation order) from us. Similarly, if they encounter something that they believe is extra to scope, they should notify us and price it for approval before proceeding (except where emergency action is needed for safety). This controls costs and ensures our client is aware. We pass through the process we have with our client to our subcontractors: i.e., no claim for extra work will be honoured unless properly authorised. We align payment for variations such that we pay subcontractors for variations when and if our client has agreed and pays for them, in many cases (this is made clear in contract terms).

Payment Terms: Our standard terms are to pay subcontractors under the CIS scheme within a specified period (often 30 days) from receipt of a proper invoice or application, subject to any contractual set-off or retentions. We adhere to the Construction Act requirements: subcontractors submit applications, we issue Payment Notices, and if necessary Pay Less notices within contractual windows. We do not engage in unfair payment practices; we know prompt payment helps maintain good relations and performance. However, we do operate retention (commonly 5%, half released on completion, half after defects period) in line with industry practice, which subcontractors must agree to.

Retention & Security: If retention is held, we ensure release at the appropriate times, assuming the subcontractor has fulfilled obligations (including snagging completion). If a subcontractor provides a retention bond, we might waive cash retention.

Back-to-Back terms: In many respects, our subcontract conditions are "back-to-back" with our head contract, meaning if our client imposes certain standards or procedures, the subcontractor must also follow them. For example, if our head contract allows the client to require removal of a worker for misconduct, our subcontract will allow us to similarly require the subcontractor to remove that person from the site.

Quality and Performance Expectations:

Workmanship: Subcontractors must carry out works to the required specifications, drawings, and industry good practice. Work should meet or exceed relevant British Standards and Building Regulations where applicable. We expect neat, accurate, and durable results. Our site managers inspect subcontractor work regularly. If we find defects or non-compliance:

We will notify the subcontractor and they are obliged to rectify at their cost, within a reasonable time.
If a subcontractor fails to correct a defect promptly, we reserve the right to engage others to fix it and deduct those costs from the subcontractor.
A snagging process will occur near project completion; subcontractors must attend to any punch-list items pertaining to their work swiftly.

Supervision: The subcontractor must provide a competent supervisor (working or non-working) on site whenever their operatives are working, to manage their team and liaise with our management. This • person must be fluent in English (or another arrangement made to ensure communication) so that safety briefings and instructions are clearly understood.
Tools, Plant & Materials: Unless otherwise agreed, subcontractors provide their own tools and equipment. All such tools must be in safe condition (with required test tags, etc.). If the contract requires them to provide materials, those materials must be of specified quality (or best quality if not specified) and subject to our approval. If we provide materials, subcontractors should inspect them upon receipt and notify any defects or shortages immediately. They must handle and install materials properly to avoid damage.

Coordination: Many trades have interdependencies. Subcontractors are expected to coordinate with other trades on site in a professional manner. This includes attending coordination meetings that we organise, following site schedules, and not causing delays or hindrances to others. If any conflict arises (e.g., two trades needing the same space), subcontractors should work through our site manager to resolve scheduling.

Cleanliness and Protection: Subcontractors must maintain their work area in a tidy state, cleaning up debris and waste periodically and definitely at the end of each day. Waste should be placed in designated skips (segregated if required) or stacked safely for removal. They must also protect adjacent work and finishes from damage (for example, protect flooring when painting walls). If a subcontractor causes damage to others' work or property by negligence, they must make it good or bear the cost of making good.

Compliance with Regulations: Subcontractors must adhere to all relevant regulations, including Building Regulations for the aspects of work they perform (like electrical safety, gas safety, etc.). They should provide necessary certifications upon completion (e.g., electrical installation certificate, gas safe certificate).

Defects Liability: Most projects have a defects liability (maintenance) period after completion (e.g., six or twelve months) during which the main contractor must attend to defects. We require subcontractors to similarly stand by their work. If a defect is reported that is attributable to the subcontractor's work, they are obligated to return and fix it at their own cost within a reasonable time. We may hold final retention until this period lapses and all known defects are resolved.

Health, Safety & Environment:

Safety is of paramount importance. All subcontractors on our sites must:

Follow Site Health & Safety Rules: Upon first arrival, subcontractors will undergo our site induction which covers site-specific hazards, emergency procedures, first aid arrangements, PPE requirements, and rules (like no smoking except in the area, no drugs/alcohol, etc.). They must sign to acknowledge the induction. They must then comply with all rules and instructions by our site management or safety personnel. Non-compliance can result in removal from the site.

Risk Assessments & Method Statements: We require subcontractors to submit their Risk Assessments and Method Statements (RAMS) for their work at least several days before they start on site. For example, a roofing subcontractor should provide a method statement on how they'll work at height safely, how they'll handle materials, etc. These RAMS are reviewed by us and must be approved before work begins. If a subcontractor does not have a prepared RAMS, we may assist or include them under our own if appropriate, but they remain responsible for working safely.

PPE and Safety Gear: Subcontractors must provide appropriate personal protective equipment to their workers (hard hats, safety boots, high-vis vests as a minimum on construction sites, plus task-specific gear like harnesses, eye protection, gloves, ear protection, etc.). We enforce PPE use on site. Workers without required PPE will not be allowed to work until rectified. If a subcontractor persistently fails to equip workers, we may provide PPE and charge them, or ultimately remove them for non-compliance. • Competence & Training: Every subcontractor employee should be competent for the task they do. We prefer CSCS (or affiliated scheme) cardholders; certain tasks require it (e.g., plant operators must have CPCS/NPORS). Subcontractors must not use young or inexperienced persons unsupervised on risky tasks. If any specialised training is needed (like asbestos awareness for those refurbishing old buildings, or confined space for certain tasks), subcontractors must ensure their staff have it.

Accident/Incident Reporting: Any accident, injury or near-miss involving a subcontractor's personnel or caused by them must be immediately reported to our site manager. We will record it and investigate. Subcontractors are expected to cooperate in any investigation and provide statements or information as needed. If an incident is RIDDOR reportable and involves a subcontractor, we will coordinate who submits the report (usually the employer of the injured person does, but we ensure it gets done).

Drugs & Alcohol: We have a zero tolerance for working under the influence. Subcontractors must ensure their staff are fit for duty. We reserve the right to remove any person suspected of being under influence for safety reasons.

Disciplinary Safety Process: If a subcontractor's worker violates safety rules (e.g., not using fall protection, removing guards, ignoring lockout tags), our site management will issue a warning or require immediate correction. Serious breaches can result in immediate expulsion of that individual from the site and possibly the subcontractor being in breach of contract. We maintain the right to ban specific individuals if their behaviour is repeatedly unsafe.

Environmental Requirements: Subcontractors should minimise waste and use the correct waste receptacles provided (we often segregate general waste, rubble, timber, etc.). They must not pollute (e.g., no pouring paint or chemicals down drains; use spill trays for fuel). Any environmental incident (spill, etc.) must be reported to site management at once. Subcontractors should abide by any site-specific environmental plan, such as noise control measures (no loud work at certain hours), dust suppression (mist spraying when cutting), and heritage or tree protection (not harming protected trees, etc.).

Emergency Preparedness: Subcontractors must ensure their workers know what to do in an emergency (like the location of exits, assembly point, who is the first aider). They should also have any specific rescue plans needed for their work (e.g., if they use a safety harness, have a rescue plan for falls).

Plant & Equipment Use: If subcontractors bring machinery (excavators, MEWPs, forklifts, etc.), the operators must be licensed and the equipment in good condition with current inspections (PUWER/LOLER records). They must cordon off their work zones as needed and coordinate with our site manager for any high-risk operations (like lifting operations requiring a lift plan, or hot works requiring a permit).

COVID-19 / Public Health: If relevant (like during an outbreak or pandemic), subcontractors must comply with any additional site rules on distancing, face coverings, sanitation, and isolating if symptomatic, etc., per the prevailing guidance.

Communication & Coordination:

We hold regular site meetings (weekly or biweekly, depending on project scale) with subcontractor representatives to discuss progress, technical issues, and coordination. Subcontractors are required to attend or send a competent delegate. These meetings help ensure everyone is on schedule and aware of interface issues (like making sure electrical first fix is done before plasterers come).
Daily briefings or check-ins may also occur (especially if there are many trades on site) to plan the day's work.
We ask subcontractors to communicate proactively: if they foresee a delay, need a design clarification, or encounter unforeseen conditions (like discovering hidden pipes or hazardous materials), they must inform us immediately so we can plan solutions with the client or designers. Last-minute surprises cause more issues, so early notice is expected. • Any directions from the client or architect that affect a subcontractor will be relayed through us to maintain contract clarity. Subcontractors should not take direct instructions from the client or third parties that alter scope or terms without confirmation from our project manager (to avoid scope creep or working for free).
If a subcontractor has an idea to improve something or a concern (for safety, quality or efficiency), we encourage raising it. We value teamwork and often their on-the-ground perspective can help the project.

Payment Procedure:

Subcontractors must submit their payment applications or invoices in line with our schedule (e.g., by the 25th of each month for work done up to that date, or as specified). The application should detail the works completed, any agreed variations, and the total due minus retention if applicable.
We will assess the application and issue a Payment Notice within the timeframe required (usually within 5 or 7 days of the valuation date) stating what we intend to pay. If we disagree with any part (e.g., work not actually complete or defective), we will discuss and, if needed, issue a Pay Less Notice specifying the deduction and reason.
Typically, payment is made by BACS to the subcontractor's bank. Our aim is to pay on time as per contract. We understand withholding payment without cause damages relationships and we abide by the "pay when paid" clauses only if lawfully allowed and explicitly in contract (generally construction law prohibits pay-when-paid except in insolvency of the employer).
If our client fails to pay us, we do not automatically mirror that to subcontractors unless contractually allowed, but in good practice, we attempt to still pay subs on time. If a severe upstream issue arises, we communicate with subcontractors to find amicable interim arrangements. However, legally each contract stands alone.
Retention release: Subcontractors must request release of retention at the appropriate times (practical completion and end of defects period). We will release promptly provided all their work is satisfactorily completed and defect-free. If the main contract allows our client to retain some portion until final certification, our subcontract retention may align with that.

Issues and Dispute Resolution:

Defects or Poor Performance: As above, if performance is subpar, we will notify and give the subcontractor a chance to correct it. We prefer not to escalate to termination unless absolutely necessary. However, contract terms allow us to replace a subcontractor or terminate their contract if they significantly breach the terms (like abandoning work, persistent safety violations, or insolvency). If so, we may claim any extra costs incurred from them (like cost difference to hire a replacement).
Conflict Resolution: We try to resolve disputes amicably through direct discussion at site or management level. If a commercial dispute arises (e.g., disagreement on variation value or delay responsibility), we will refer to the contract's dispute resolution clause. Often this might be negotiation then adjudication (since construction contracts often provide for adjudication under the Construction Act). We will attempt negotiation or mediation first in good faith. The subcontractor has rights to adjudication at any time (and so do we), and we acknowledge that.
Complaint Against Subcontractor: If our client has a complaint about a subcontractor (like their behaviour or quality), we will investigate and involve the subcontractor's management to address it. We expect cooperation to maintain client satisfaction.

Subcontractor Conduct and Company Values:

We treat subcontractors as important partners and expect them to uphold our company values in dealings with us and clients. This includes honesty (no false claims or hiding issues), integrity (not offering bribes or kickbacks to our staff – we have an anti-bribery policy), and respect.
Subcontractors should not directly solicit or contract with our clients for additional work behind our back during an ongoing project, as typically our contract forbids circumventing the main contractor. Building trust means everyone stays in their lane; if a client asks a subcontractor to do side work, the subcontractor should politely redirect through us.
Similarly, we will not poach subcontractors' key staff and they should not poach our employees. We strive for long-term relationships built on fairness. • Compliance with Laws and Policies:

Subcontractors must comply with all applicable laws (labour laws, tax laws, H&S law, environmental law, GDPR if handling personal data on our behalf, etc.).

We also expect them to adhere to our own policies when on our jobs: e.g., the Equality & Diversity Policy – no harassment or discriminatory behaviour on site. If a subcontractor's employee were found to harass someone, they'd be removed and we would require the subcontractor to handle disciplinary action.
Modern Slavery: As per our Modern Slavery Statement, we seek assurance that subcontractors do not employ forced or trafficked labour and that they ensure their supply chains are free of such practices. Any indication otherwise would be grounds for termination and reporting.
Confidentiality: Subcontractors may learn confidential details about our clients or business. Contractually, they are expected to keep such information confidential and not use it for their own gain or share it inappropriately.

Review and Feedback:

We periodically review subcontractor performance formally (perhaps at project end). Good performance is acknowledged and increases the likelihood of future work. Poor performance is discussed and they may be given another chance for improvement, or if severe, removed from our list.

We also encourage subcontractors to review us as a contractor – open communication both ways helps improve. If there are ways we can better coordinate or treat subs, we want to know.
This policy itself will be reviewed as needed, for instance, if there's a change in law that affects subcontracting or if repeated issues indicate we need a new procedure.

By setting these clear standards and maintaining good communication, the Company and its subcontractors can work together safely, efficiently, and to mutual benefit, delivering excellent results to our clients.

Acknowledgment: We include this policy in subcontractor packs or contract preambles, and by signing a subcontract with us, subcontractors acknowledge they have read and will abide by this Subcontractor Policy.