SUB CONTRACTING

• BENEFITS OF SUBCONTRACTING IN CONSTRUCTION INDUSTRY:

 IMPROVES THE PRODUCT QUALITY

 REDUCE COST
 INCREASE PRODUCTIVITY
 COST CONTROL
 RISK SHARING
 TYPES OF SUB CONTRACTOR

SUBCONTRACTORS OF BASIC ACTIVITIES: CONSIST MAINLY CONCRETE,

MASONRY, MASONRY COATINGS AND CERAMIC COATINGS.

 TECHNICAL SPECIALIST: THEY DO ACTIVITIES LIKE ELECTRIC FACILITIES,

HYDRAULICS, AIR-CONDITIONING, AND PLUMBING.

LABOR OR MATERIALS SPECIALIST: PAINTING, FLOORS, WINDOWS, GLASSES,

EXTERNAL COATINGS, FOUNDATIONS AND CLEANING ARE AMONG THE MOST
IMPORTANT.
WBS OF BUILDING
Construction
of building

Structural Finishes Utilities

Tendering Procurement Ground work
(Contractor) (Sub (Sub (Sub
(contractor) (contractor)
contractor) contractor) contractor)

Publishing
project details Material Site clearing Sub structure Super structure Painting Mechanical
on E tender

Review all
Equipment Soil excavation PCC Columns Floor tiles Electrical
tender pack

Preparing bill Stock piling Slabs and Windows and

of quantities and compaction Footing beams doors Plumbing

Column Roofing

Plinth Beams
Landscaping
WBS OF ONE APARTMENT
Single Apartment
work
(sub contractor)

Kitchen and Living room and

Toilet
utilities bedroom

Painting and Electrical

Tile Layout
plastering conceals

Concealed
Plumbing and Tiling and
plumbing and
water proofing skitting
electrical work

Water proofing in
Water proofing Painting
utility

Wall and floor

plastering
tiles
SUB CONTRACTING PROCEDURE:
• IN CONSTRUCTION, THE BIDDING PROCESS IS THE MAIN WAY FOR THE GENERAL CONTRACTING FIRMS
INVITE SUBCONTRACTORS TO BID ON WORK THE GENERAL CONTRACTOR WANTS TO SUBCONTRACT OUT.
GENERAL CONTRACTOR’S HIRES SUBCONTRACTORS MAINLY FOR SITE WORK, SO THE BIDDING PROCESS IS
AN INTEGRAL PART OF A CONSTRUCTION PROJECT. THIS PROCESS ALLOWS GENERAL CONTRACTORS TO
HIRE SUBCONTRACTORS AT A COMPETITIVE RATE.
1. INVITATION TO BID FROM GENERAL CONTRACTOR
2. PRE QUALIFICATION OF BIDDERS
3. SUBCONTRACTORS RECEIVE A BID PACKAGE WHICH SHOWS THE SCOPE OF WORK THAT
NEEDS TO BE COMPLETE.
4. SUBCONTRACTORS DOWNLOAD BID DOCUMENTS AND REVIEW IT.
5. SUBCONTRACTORS SUBMIT THEIR BID TO THE GENERAL CONTRACTOR.
6. GENERAL CONTRACTORS AWARD A BID TO THE SUBCONTRACTOR (LOA)
7. PURCHASE ORDER
 INVITATION TO BID

 
SEALED BID WILL BE AVAILABLE AT MANNAT HOUSE 5 BROCKLEY DRIVE SCARBOROUGH, ONTARIO M1G
2P6 UNTIL 2 PM ON MONDAY MARCH 10, 2020.AND THEN OPENED AND READ ALOUD PUBLICLY FOR THE
REQUIREMENT OF ALL LABOUR AND MATERIAL TO PERFORM THE WORK IN CONJUNCTION WITH THE
MANNAT HOUSE. THE GENERAL CONTRACTOR OF THE PROJECT IS VOHRA CONSULTANT.
THIS PROJECT CONSISTS OF CONSTRUCTION OF LOW RISE BUILDING FOR APPROX.2000 SQUARE FEET. THE
APPROXIMATE ESTIMATED COST OF THIS PROJECT IS 3,00,000 CAD DOLLAR.
A PRE BID MEETING WILL BE HELD AT 11 PM ON WEDNESDAY 25 MARCH,2020 AT OWNER’S LOCATION.
BID DOCUMENT WILL BE AVAILABLE FORM MONDAY TO FRIDAY AT 56 STONEHENGE CRESCENT ON,M1G
2P6 (647)-809-3173.SUB CONTRACTOR CAN OBTAIN UP TO 5 SETS OF DOCUMENT UPON RECEIPT OF DEPOSIT OF
100$ PRE SET IN THE FORM OF CHECK OR MONEY ORDER PAYABLE TO OWNER. THIS DEPOSIT WILL NOT BE
REFUNDED IN ANY CIRCUMSTANCES.
SECURITY DEPOSIT WILL BE REQUIRED IN THE FORM OF A BID BOND, WHICH IS ISSUED BY SURETY
COMPANY. THE AMOUNT OF BID BOND MUST BE 5% OF THE TOTAL BID SUM. ALL BIDS SHALL COMPLY WITH
THE DRAWING AND SPECIFICATION OF THE PROJECT.
THE OWNER RESERVES THE RIGHT TO ACCEPT OR REJECT ANY OFFER FROM BIDDERS ON HIS BEST INTEREST.
PUBLICATION DATES: SATURDAY, FEBRUARY 08,2020, FEBRUARY 20,2020, MARCH 1,2020.
 
 Sub contractor
selection
Criteria

Cost Quality Time Adequacy

Completion of
Financial Quality of Adequacy of
project within
capacity production material
time

Timely payment Standard of Time accuracy in Adequacy of

to labourers workmanship submitting a bid equipment

Completion of
Adequacy of
project within Team efficiency
labor resources
budget

Compliance with
Experience
contract

Compliance with
site safety
requirement
 RESIDENTIAL SUBCONTRACTOR AGREEMENT

1. THE PARTIES. THIS RESIDENTIAL SUBCONTRACTOR AGREEMENT (“AGREEMENT”) MADE ON ______________________,

20____, IS BETWEEN ______________________ WITH A MAILING ADDRESS OF ______________________, CITY OF
______________________, STATE OF ______________________ (“CONTRACTOR”) AND ______________________ WITH A MAILING
ADDRESS OF ______________________, CITY OF ______________________, STATE OF ______________________
(“SUBCONTRACTOR”) BOTH OF WHOM AGREE AS FOLLOWS:
 
2. THE CLIENT. THE SUBCONTRACTOR ACKNOWLEDGES THAT ANY WORK PERFORMED UNDER THIS AGREEMENT MUST
BE IN ACCORDANCE WITH THE LATEST VERSION AGREEMENT(S) (“PRIME CONTRACT”) MADE BETWEEN THE
CONTRACTOR AND ______________________ WITH A MAILING ADDRESS OF ______________________, CITY OF
______________________, STATE OF ______________________ (“CLIENT”).

3. SERVICES PROVIDED. SUBCONTRACTOR AGREES TO COMPLETE THE FOLLOWING: ____________

_________________________________________________________ (“SERVICES”).

4. CONTRACT DOCUMENTS:
 
THIS CONSTRUCTION AGREEMENT, TOGETHER WITH THE FOLLOWING DOCUMENTS PREPARED BY ___________IN HIS
CAPACITY AS ______, ARE MADE INTEGRAL PARTS BY REFERENCE CONSTITUTE THE ENTIRE CONTRACT.
• SITE PLAN ,FLOOR PLANS, SECTION AND DETAILS ELEVATION ,SPECIFICATION,
 5 . SCOPE OF WORK:

• THE SUB CONTRACTOR SHALL BUILD THE NEW BUILDING LOCATED AT _______________AS DESCRIBED BELOW.

• CONSTRUCTION OF 2 STORY RESIDENTIAL BUILDING FROM FOUNDATION.

• CONSTRUCTION OF SUB STRUCTURE AND SUPER STRUCTURE.

• INSTALLATION OF H.V.A.C

• PAINTING, PLASTERING, TILING, AND FINISHING OF INTERIOR WALLS AND EXTERIOR WALLS.

• THE CONTRACTOR SHALL FURNISH ALL LABOR, TOOLS, AND EQUIPMENT THEREIN AND PERFORM ALL THE WORKS
REQUIRED.
6. COMMENCEMENT DATE. THE SUBCONTRACTOR SHALL BE PERMITTED TO BEGIN THE SERVICES ON
______________________, 20____ (“COMMENCEMENT DATE”).

7. COMPLETION. THE SUBCONTRACTOR WILL BE REQUIRED, UNLESS OTHERWISE STATED UNDER THE TERMS OF THIS
AGREEMENT, TO COMPLETE THE SERVICES: (CHOOSE ONE)
 
- BY THE SPECIFIC DATE OF ______________________, 20____.

8. PAYMENT AMOUNT. PAYMENT FOR THE SERVICES SHALL BE AS FOLLOWS:

BIDDER WILL COMPLETE THE WORK IN ACCORDANCE WITH THE CONTRACT DOCUMENTS FOR THE FOLLOWING PRICE.

LUMP SUM BID

• LUMP SUM BID PRICE: __________________________________(WRITTEN AMOUNT)

$_______________________________________________________(NUMBERS
9. PAYMENT METHOD. PAYMENT SHALL BE MADE BY THE CONTRACTOR TO THE SUBCONTRACTOR AS FOLLOWS: (CHOOSE ONE)

- IMMEDIATELY UPON COMPLETION OF THE SERVICES TO THE SATISFACTION OF THE CONTRACTOR.

- WITHIN ____ BUSINESS DAYS AFTER COMPLETION OF THE SERVICES TO THE SATISFACTION OF THE CONTRACTOR.

- SHALL BE PAID ON A ☐ WEEKLY ☐ MONTHLY ☐ QUARTERLY ☐ OTHER ______________________ BASIS. IF THE SUBCONTRACTOR COMPLETES THE SERVICES TO THE
SATISFACTION OF THE CONTRACTOR, BEFORE THE FULL AMOUNT OR BALANCE HAS BEEN FULLY PAID, ANY REMAINING AMOUNT SHALL BE PAYABLE IMMEDIATELY.

10. TIME OF COMPLETION

10.1 BIDDER AGREES THAT WORK WILL BE SUBSTANTIALLY COMPLETED AND READY FOR FINAL PAYMENT IN ON OR BEFORE THE FOLLOWING DATE (OR WITHIN THE NUMBER
OF CALANDER DAYS INDICATED)

• DATE OF SUBSTANTIAL COMPLETION; __________________________ 200__

OR

• NUMBER OF CALENDAR DAYS: _________________________ DAYS

11. CHANGE ORDERS. ANY ALTERATION OR DEVIATION FROM THE SERVICES MENTIONED OR ANY OTHER CONTRACTUAL SPECIFICATIONS THAT RESULT IN A REVISION OF THIS
AGREEMENT SHALL BE EXECUTED AND ATTACHED TO THIS AGREEMENT AS A CHANGE ORDER (“CHANGE ORDER”).

12. DELAYS. SHOULD THE SUBCONTRACTOR DELAY THE CONTRACTOR, OR ANY OTHER CONTRACTORS, SUBCONTRACTORS, SUPPLIERS AND/OR MATERIALMEN ON THE ENTIRE
PROJECT, SUBCONTRACTOR WILL INDEMNIFY THE CONTRACTOR AND HOLD CONTRACTOR HARMLESS FOR ANY DAMAGES, CLAIMS, DEMANDS, LIENS, STOP NOTICES,
LAWSUITS, ATTORNEYS' FEES, AND OTHER COSTS OR LIABILITIES IMPOSED ON THE CONTRACTOR CONNECTED WITH SAID DELAY. AMONG OTHER REMEDIES FOR
SUBCONTRACTOR'S DELAY, THE CONTRACTOR MAY SUPPLEMENT THE SUBCONTRACTOR'S WORK AND DEDUCT ASSOCIATED COSTS AT CONTRACTOR'S ELECTION.
13. WARRANTY. SUBCONTRACTOR WARRANTS TO CLIENT AND CONTRACTOR THAT ANY AND ALL MATERIALS AND EQUIPMENT FURNISHED SHALL BE NEW UNLESS OTHERWISE
SPECIFIED AND THAT ALL SERVICES PROVIDED UNDER THIS AGREEMENT WILL BE PERFORMED, AT A MINIMUM, IN ACCORDANCE WITH INDUSTRY STANDARDS. ALL WORK NOT
CONFORMING TO THESE REQUIREMENTS, INCLUDING SUBSTITUTIONS NOT PROPERLY APPROVED AND AUTHORIZED, MAY BE CONSIDERED DEFECTIVE. THE WARRANTY PROVIDED
IN THIS SECTION SHALL BE IN ADDITION TO AND NOT IN LIMITATION OF ANY OTHER WARRANTY OR REMEDY REQUIRED BY LAW OR BY THE PRIME CONTRACT.
 
14.REQUIRED LICENSES. ALL PARTIES OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO, CONTRACTOR, SUBCONTRACTOR, OTHER SUB-CONTRACTORS, AND ALL PARTIES'
DIRECT OR INDIRECT EMPLOYEES AND AGENTS SHALL BE LICENSED IN ACCORDANCE WITH RESPECTIVE STATE LAWS WHERE THE INDIVIDUAL IS PERFORMING THEIR TRADE OR
SERVICE. ALL INDIVIDUALS UNDER THIS AGREEMENT SHALL BE REGULATED BY THEIR RESPECTIVE LICENSING BOARD WHICH HAS JURISDICTION TO INVESTIGATE COMPLAINTS
MADE BY ANY THIRD (3RD) PARTIES.
15. TERMINATION. DURING THE COURSE OF THIS AGREEMENT: (CHOOSE ONE)
 
- NO RIGHTS TO TERMINATE: NO PARTY HAS THE RIGHT TO TERMINATE THIS AGREEMENT UNLESS MUTUALLY AGREED UPON IN WRITING BY CONTRACTOR AND
SUBCONTRACTOR.
 
- CONTRACTOR ONLY HAS THE OPTION TO TERMINATE: CONTRACTOR MAY, AT ANY TIME AND FOR ANY REASON, TERMINATE SUBCONTRACTOR’S SERVICES HEREUNDER AT THE
CONTRACTOR’S CONVENIENCE WITH AT LEAST ____ BUSINESS DAY(S) NOTICE. IN THE EVENT OF TERMINATION FOR CONVENIENCE, SUBCONTRACTOR SHALL RECOVER ONLY THE
ACTUAL COST OF WORK COMPLETED TO THE DATE OF TERMINATION, IN APPROVED UNITS OF WORK OR PERCENTAGE OF COMPLETION, PLUS ____% OF THE ACTUAL COST OF THE
COMPLETED WORK FOR OVERHEAD AND PROFIT.
 
- SUBCONTRACTOR ONLY HAS THE OPTION TO TERMINATE: SUBCONTRACTOR MAY, AT ANY TIME AND FOR ANY REASON, TERMINATE THEIR SERVICES HEREUNDER AT THE
SUBCONTRACTOR’S CONVENIENCE WITH AT LEAST ____ BUSINESS DAY(S) WRITTEN NOTICE TO THE CONTRACTOR. IN THE EVENT OF TERMINATION FOR CONVENIENCE,
SUBCONTRACTOR SHALL RECOVER ONLY THE ACTUAL COST OF WORK COMPLETED TO THE DATE OF TERMINATION, IN APPROVED UNITS OF WORK OR PERCENTAGE OF
COMPLETION. IN SUCH TERMINATION, SUBCONTRACTOR SHALL NOT BE ENTITLED TO ANY CLAIM OR LIEN AGAINST THE CONTRACTOR, OWNER OR ANYONE ELSE FOR ANY
ADDITIONAL COMPENSATION OR DAMAGES.
 
- BOTH PARTIES HAVE THE OPTION TO TERMINATE: CONTRACTOR OR SUBCONTRACTOR MAY, AT ANY TIME AND FOR ANY REASON, TERMINATE THIS AGREEMENT FOR
CONVENIENCE WITH AT LEAST ____ BUSINESS DAY(S) NOTICE. IN THE EVENT OF TERMINATION FOR CONVENIENCE, SUBCONTRACTOR SHALL RECOVER ONLY THE ACTUAL COST OF
WORK COMPLETED TO THE DATE OF TERMINATION IN APPROVED UNITS OF WORK OR PERCENTAGE OF COMPLETION.
16. ATTACHMENTS. THE CONTRACTOR MAY ATTACH ANY PLANS, SCHEMATICS, DRAWINGS, DETAILS, OR OTHER
INFORMATION TO ASSIST THE SUBCONTRACTOR WITH THE AFOREMENTIONED SERVICES. ANY ATTACHMENT MADE SHALL
BE MADE PART OF THIS ENTIRE AGREEMENT.
 
17.ADDENDA: A. BIDDER HAS EXAMINED AND CAREFULLY STUDIED THE BIDDING DOCUMENTS, THE OTHER RELATED
DATA IDENTIFIED IN THE BIDDING DOCUMENTS, AND THE FOLLOWING ADDENDA, RECEIPT OF WHICH IS HEREBY
ACKNOWLEDGED.
ADDENDUM # ADDENDUM DATE
• _______________________ __________________________
• _______________________ __________________________
• _______________________ __________________________

• CONTRACTOR’S SIGNATURE __________________________ DATE ________________

PRINT NAME ____________________________
COMPANY NAME ____________________________

• SUBCONTRACTOR’S SIGNATURE __________________________ DATE ________________

PRINT NAME ____________________________
COMPANY NAME ____________________________
LETTER OF AWARD
THANK YOU