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The First and Only Industry Standard Subsubcontract - ConsensusDOCS 725

August 24, 2009
As an ongoing leader in construction industry contract documents, ConsensusDOCS has done it again!  In June 2009, ConsensusDOCS, the unique collaboration of 22 leading industry associations, released its new subsubcontract agreement - the ConsensusDOCS 725.  It is now easier for subcontractors to contract with subsubcontractors!  ConsensusDOCS has created a new standard contract document specifically designed to address the unique characteristics of subsubcontracting.  Replacing the need to use a purchase order or try to alter a subcontract, a fair contract document is now available to address the increasing specialization of the industry and the greater use of sub-subcontractors.  This straight-forward six-page agreement provides an ideal base for the somewhat simpler subsubcontracting relationship.  The ConsensusDOCS 725 includes essential provisions addressing issues including safety, change orders, payment, indemnity and much more. The ConsensusDOCS 725 Subsubcontract Agreement also coordinates important flow-down clauses and incorporates similar terms to upstream agreements.  Additionally, the ConsensusDOCS 725 contains flexible provisions for the incorporation of exhibits to address scope of work, schedule, insurance and other subjects.  While modified to address the special needs of subsubcontracting, the new subsubcontract document is still based upon the risk allocation philosophy found in the rest of the ConsensusDOCS family. This new ConsensusDOCS subsubcontracting agreement, as well as every document in the ConsensusDOCS family, was developed through a collaborative effort of a team of professionals representing every part of the construction process, including designers, owners, contractors, subcontractors and surety professionals.  The organizations endorsing these agreements, including AGC of America (a founding sponsor), believe that they represent a fair and reasonable consensus among the collaborating parties of allocation of risk and responsibilities in an effort to appropriately balance the critical interests and concerns of all project participants. All project stakeholders affected, directly or indirectly, by subsubcontracting practices would benefit in using the new ConsensusDOCS 725 Standard Subsubcontract Agreement.  Please visit the AGC Contracts Website for more information.  All AGC members receive a 20% discount on all ConsensusDOCS purchases through the AGC Bookstore.
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