Substitution paperwork

[BlackenedBiker]

I am about to substitute my current contract out to another contractor.

The client company has agreed and I am ready to go.

With regards to my legal relationship with the substituting contrator, is there a requirement for a contract / piece of paper between my company and his? Is there a template available for this on the PCG?

Also with regards to insurance does he need to insure himself or is it down to my company?

[Qdos Contractor]

What entity is he working through, i.e. his own ltd, sole trader etc?

[BlackenedBiker]

What entity is he working through, i.e. his own ltd, sole trader etc?

He is working through his own limited company.

[Qdos Contractor]

It would be worth putting a contract in place between the substitute company and your own company. Just a standard business to business agreement would suffice - presumably the PCG will have a template (or you could drop us an email if you are an existing client of ours).

Obviously for the right of substitution to be genuine you need to remain responsible for the project. In that respect, any claims from your end client would be put through your insurance. However, I would ensure that the substitute has their own policies so you can counter claim if necessary.

[lje]

I am about to substitute my current contract out to another contractor.

The client company has agreed and I am ready to go.

With regards to my legal relationship with the substituting contrator, is there a requirement for a contract / piece of paper between my company and his? Is there a template available for this on the PCG?

Also with regards to insurance does he need to insure himself or is it down to my company?

I would assume that if you are invoking your contract's substitution clause then he will be representing your limited company, although that depends on the wording. If that's the case then you will need a contract with the substitute's company, they will invoice you and you will invoice the client. In your contract with the substitute you can require them to have insurance.

[Bright Spark]

definately worth having a contract in place with your sub, also make sure the
payment terms are clearly defined and linked to when you get paid
by the end client otherwise you could end up with cashflow problems.