Key Notice Provisions Under the New AGC/ASC/ASA Subcontract

Kegler Brown Construction Newsletter

The AGC/ASC/ASA model subcontract has a number of rather rigid notice requirements for both general contractors and subcontractors. Some of the most important to keep in mind are as follows:

Subcontractors must notify contractor in writing:

  • of schedule of values within 14 calendar days from date of signing subcontract.
  • of claim due to schedule, interference or contractor error or omission within seven calendar days from date subcontractor first learns of problem.
  • of inconsistency, omission or code problem with contract documents within three days from date subcontractor first becomes aware of problem.
  • of any deficiency in other trade's work affecting yours, within seven calendar days of learning of deficiency.
  • of claim due to owner error or omission, in sufficient time so that contractor can timely pass such claim through to the owner.
  • of disagreement with the proposed adjustment to price or time in a change directive within seven days after disagreement becomes apparent.
  • of termination upon seven calendar days when work stopped for 30 days due to late payment or other grounds.

There are also time requirements placed upon contractor who must notify the subcontractor in writing:

  • of backcharge, (a) oral notice prior to furnishing (except in emergency); (b) providing written notice within seven days of first furnishing; and (c) compilations of charges by the 15th of the following month.
  • of default, within three working days.
  • of termination, within seven working days if prior default was not cured.

It is hoped that these short-notice requirements can eliminate end-of-the-project surprises for both sides.