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Subcontractors Statement
When a contractor (subcontractor) enters a contract to provide a service to a principal contractor, they must provide a Subcontractor’s Statement if they have workers who will also work on the project.
The Subcontractor’s Statement declares that the subcontractor has met certain legal obligations, including the following:
- They have workers compensation to cover their workers, if required
- They have paid all payroll tax due in respect of employees who performed work under the contract
- They have paid appropriate remuneration to the relevant employees
- They have provided a written Subcontractor’s Statement if they are also a principal contractor in connection to the project.
As this resource indicates, the purpose of the Statement is to allow a subcontractor the right to work and be compensated for working on the principle contractor’s project. At the same time, they vouch that they take responsibility for any legal non-compliance. Without the Statement, the principal contractor has a right to withhold payment from the subcontractor.
The resource also outlines when a Statement needs to be provided and what needs to be provided with the Statement. It also stipulates that a copy of the Statement must be kept by the principal contractor for a period of seven years.
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Who is it for?
Residential builders and industry professionals
This resource is designed for builders and industry professionals who plan on engaging contractors who will have workers work on the same project with them.
What does it include?
- What a Subcontractor's Statement is
- Who need to provide a Statement
- What the purpose of a Statement is
- When a Statement needs to be provided
- What needs to be supplied with the statement
- How long the Statement needs to be kept.