It is a simple company-friendly advisory contract to commission independent contractors or consultants (e.g. individuals.B or individual operators) to work in a company. (1) The usual practice for contractors to use subcontractors 26.2.15 In addition to written documents, there is also an explicit term in diagrams and plans. In Sheng Siong Supermarket Pte Ltd v Carilla Pte Ltd  4 SLR 1094, a dispute was raised as to whether one of the terms of the rental agreement was permission to use the premises as a supermarket. A subcontract is a contract setting out the conditions between a contractor and a subcontractor for the provision of services to a third party. Subcontracting is the practice of delegating part of the obligations and tasks of a contract to another known subcontractor, which can be common in areas or areas where it is necessary to work on complex projects, such as. B construction and information technology. 26.6.4 Most standard construction and infrastructure contracts include lump sum damages and renewal clauses. The flat-rate replacement clause gives the employer a remedy in the event of damage agreed in advance if the contractor does not conclude in good time and limits that of the contractor. A subcontractor may be held liable for lump sum damages that the contractor must, in certain circumstances, pay to the employer: L&M Airconditioning (Pte) Ltd against SA Shee & Co (Pte) Ltd  3 SLR 483. If the main contractor wishes to claim from a subcontractor lump sum damages paid by the main contractor to the employer, the main contractor must prove that the lump sum damages are exclusively due to the infringements committed by the subcontractor. The subcontractor does not have the burden of proving that delays were caused by other subcontractors: CAA Technologies Pte Ltd v Newcon Builders Pte Ltd  2 SLR 940. Subcontractors are recruited by the general contractor of the project, who remains globally responsible for the conclusion of the project, but who enters into a contract with a subcontractor who defines their limited tasks, mainly related to their profession.
A subcontracting agreement is an important legal document that defines the terms of a commercial agreement between a contractor and a subcontractor, which requires specific information about the contractual terms in clear, concise and legally applicable language, in order to protect both parties from unfair risks that may arise. 26.5.9 In addition, extrinsic proof of subcontracted oral contracts is permitted under conditions (b) of the Evidence Act if its terms are not contrary to those of the main contract. Another essential element to consider in a subcontracting agreement is the supply chain and other operational risks. Items in the supply chain or indicated by the owner are not always under the control of the subcontractor and, in such cases, should not be the fault of the subcontractor. However, some contracts attempt to shift this risk onto subcontractors. Reading and negotiating the subcontracting agreement will help avoid problems related to supply chain risks. Employment contracts in Singapore are also governed by the general principles of contract law. .