Subcontractors Flashcards
What is domestic subcontractor?
A subcontractor selected and appointed by the main contractor, whom the contractor is responsible for the performance of.
What is a nominated subcontractor?
A subcontractor, usually a specialist, nominated by the client. They are effectively imposed on the contractor by the client, and the client is responsible for their performance.
What is the process of inserting a nominated subcontractor?
The mechanism for nominating is an instruction in relation to a prime cost sum to which the main contractor is entitled to add a mark-up and attendance costs.
When might it be appropriate to nominate a subcontractor?
On items with long lead times or where specialist design input is required at an early stage.
What is a named subcontractor?
Naming subcontractors allows the client to influence the selection of sub-contractors whilst leaving responsibility for their performance with the main contractor. Following appointment, they become domestic.
What is the process for appointed a named subcontractor?
The client names a short-list of subcontractors that would be acceptable to them in the tender documents for the main construction contract. The tender documents allow for this by including a provisional sum for the subcontract package.
What is more popular, nomination or naming of subcontractors?
Because of these and other complexities, nomination is generally not used in UK contracts (such as JCT contracts), where the use of named sub-contractors is now generally considered to be a simpler alternative. However, some contracts still allow nomination, particularly international contracts such as FIDIC.
