Concrete and formwork subcontracts: the risks and what to negotiate
Concrete and formwork packages are early, heavy and weather-dependent, and they set the pace for every trade after them. That makes liquidated damages, weather delay and quantity changes the clauses that decide whether the job makes money.
AI risk report, not legal advice. The scanner gives general information about the risks in a document. It is not a lawyer, does not know your circumstances, and can be wrong. For decisions with legal consequences, get advice from a construction lawyer.
Where concrete and formwork subcontractors lose money
Liquidated damages without a cap
Because structure sits on the critical path, a late pour can delay the whole project. An uncapped liquidated damages clause exposes you to the builder's entire delay cost. Push for a cap, commonly 5 to 10 percent of the subcontract sum.
Weather and inclement days
Check whether wet days give an extension of time automatically or only above an allowance, and whether you need to notify each day. A daily notice requirement with an absolute bar is easy to miss in a wet month.
Quantity and design changes
Thickened slabs, extra reinforcement and late design changes change your quantities. A lump sum with no remeasure or rates for changes leaves the extra concrete and steel unpaid.
Pump, crane and access dependencies
If access, crane time or pump positions depend on the builder, the contract should treat interruptions as delay events, not your risk.
Three things to push for in your departures schedule
- Liquidated damages capped at 5 to 10 percent of the subcontract sum
- Extension of time for inclement weather with a simple monthly notice
- Agreed rates for quantity changes and design revisions
The free scanner finds these clauses in your actual contract in about two minutes and writes the departures schedule for you.
What the Index says
Live figures from the Australian Subcontract Index, 90 real subcontracts. The Index holds only 8 concrete and formwork contracts so far, under the 10-contract threshold, so these are national figures across all trades. Nothing under 10 contracts is ever shown.
Concrete and formwork subcontracts by state
Concrete and formwork subcontracts: common questions
Are uncapped liquidated damages normal in concrete subcontracts?
They are common, which is why they are worth negotiating. An uncapped clause can expose you to the builder's entire delay cost for a package that may be a small share of the project. A cap of 5 to 10 percent of your subcontract sum is a widely used market position.
Do concrete and formwork subcontractors have payment rights that override the contract?
Yes. Every state and territory has a Security of Payment Act that lets you make a payment claim and get to adjudication quickly, and several states cap how long payment terms can be. The state pages below set out each one.
Is the scanner free?
Yes. No account, no card. Upload the subcontract and the full report appears in about two minutes. General information, not legal advice.