Nominated subcontractor v named subcontractor - Revision history

Designing Buildings at 16:08, 3 October 2022

2022-10-03T16:08:07Z

← Older revision		Revision as of 16:08, 3 October 2022
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	For more information see: Named subcontractor.		For more information see: Named subcontractor.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Attendance.		* Attendance.

Designing Buildings at 06:14, 29 September 2020

2020-09-29T06:14:52Z

← Older revision		Revision as of 06:14, 29 September 2020
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	* Subcontractor.		* Subcontractor.

−	[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 16:16, 12 July 2019

2019-07-12T16:16:10Z

← Older revision		Revision as of 16:16, 12 July 2019
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	For more information see: Named subcontractor.		For more information see: Named subcontractor.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Attendance.		* Attendance.
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	* Provisional sum.		* Provisional sum.
	* Selected subcontractor.		* Selected subcontractor.
		+	* Subcontract procurement.
	* Subcontractor.		* Subcontractor.

	[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 09:30, 19 June 2018

2018-06-19T09:30:26Z

← Older revision		Revision as of 09:30, 19 June 2018
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	* Prime cost sum.		* Prime cost sum.
	* Provisional sum.		* Provisional sum.
		+	* Selected subcontractor.
	* Subcontractor.		* Subcontractor.

	[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 09:05, 18 June 2018

2018-06-18T09:05:44Z

← Older revision		Revision as of 09:05, 18 June 2018
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	= Introduction =		= Introduction =

−	Contractors may not have all the required skills or resources necessary to complete the works described in a construction contract ~~themselves~~, and so sub-contractors are commonly appointed to undertake those aspects of the project.	+	Contractors may not have all the required skills or resources necessary to complete the works described in a construction contract, and so sub-contractors are commonly appointed to undertake those aspects of the project.

−	Typically, subcontractors are selected and appointed by the contractor. These are referred to as ‘domestic’ subcontractors.	+	Typically, subcontractors are selected and appointed by the contractor themselves. These are referred to as ‘domestic’ subcontractors.

	For more information see: Subcontractors.		For more information see: Subcontractors.
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	= Nominated subcontractors =		= Nominated subcontractors =

−	~~However, under~~ certain circumstances, the client may wish ~~to be able~~ to select (or nominate) a subcontractor themselves, rather than allowing the contractor to select them. This is referred to as a nominated subcontractor.	+	Under certain circumstances, the client may wish to select (nominate) a subcontractor themselves, rather than allowing the contractor to select them. This is referred to as a nominated subcontractor.

−	This can happen~~, for example~~ where the client has involved a subcontractor in the design process, where the client wishes to achieve a very specific outcome, where they ~~already~~ have an existing relationship, or where the client needs to secure the supply of long lead-time items. Nominated subcontractors may be selected before or after the contract is entered into with the main contractor.	+	This can happen; where the client has involved a subcontractor in the design process, where the client wishes to achieve a very specific outcome, where they have an existing relationship, or where the client needs to secure the supply of long lead-time items. Nominated subcontractors may be selected before or after the contract is entered into with the main contractor.

	Ultimately, the nominated subcontractor is still appointed by the main contractor, but they are imposed on them by the client. This can be allowed for in the contract by a prime cost sum, to which the contractor is permitted to add profit and attendance.		Ultimately, the nominated subcontractor is still appointed by the main contractor, but they are imposed on them by the client. This can be allowed for in the contract by a prime cost sum, to which the contractor is permitted to add profit and attendance.

−	Nominated ~~contractors~~ are less common in the UK, and some forms of contract (such as Joint Contracts Tribunal (JCT) contracts) no longer include provision for the nomination of sub-contractors. This is because contractual arrangements allowing nomination are very complicated, and as the main contractor has no choice in the selection of the nominated sub-contractor, the contract may, or may not hold them entirely responsible for failure of the nominated sub-contractor to perform (depending on the exact wording of the contract). The contractor will however generally be allowed the right to object to the subcontractor under certain conditions~~. It~~ the client still wishes to use the subcontractor, some contracts allow them to indemnify the main contractor against the possible consequences of this.	+	Nominated subcontractors are less common in the UK than they used to be, and some forms of contract (such as Joint Contracts Tribunal (JCT) contracts) no longer include provision for the nomination of sub-contractors. This is because the contractual arrangements allowing nomination are very complicated, and as the main contractor has no choice in the selection of the nominated sub-contractor, the contract may, or may not hold them entirely responsible for failure of the nominated sub-contractor to perform (depending on the exact wording of the contract). The contractor will however generally be allowed the right to object to the subcontractor under certain conditions, and if the client still wishes to use the subcontractor, some contracts allow them to indemnify the main contractor against the possible consequences of this.

−	Because of these 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.	+	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.

	For more information see: Nominated subcontractor.		For more information see: Nominated subcontractor.
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	= Named subcontractors =		= Named subcontractors =

−	Naming subcontractors ~~is an alternative method that~~ allows the client to influence the selection of sub-contractors whilst leaving responsibility for their performance with the main contractor.	+	Naming subcontractors allows the client to influence the selection of sub-contractors whilst leaving responsibility for their performance with the main contractor.

−	The client names a short-list of subcontractors that would be acceptable to them in the tender documents for the main construction contract.	+	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. When tendering for the main contract, the main contractor makes allowances for mark up, attendance and programme in relation to the subcontract package.

−	~~The tender documents allow~~ for the ~~subcontract~~ package ~~by including a provisional sum~~. ~~When tendering for the main contract,~~ the main contractor ~~makes allowances for mark up, attendance~~ and ~~programme in relation to~~ the ~~subcontract package~~.	+	Once appointed, the main contractor seeks tenders for the package from the named sub-contractors (although they may reasonably object to any of the named subcontractors). Once the main contractor has selected and appointed a subcontractor the provisional sum is replaced with the actual price agreed.

−	Once appointed, the main contractor seeks tenders for the package from the named sub-contractors (although they may reasonably object to any of the named sub-contractors). Once the main contractor has selected and appointed a sub-contractor the provisional sum is replaced with the actual price agreed.	+	The main contractors assumes responsibility for the subcontractor’s performance. In effect the named sub-contractor becomes a domestic subcontractor, they are paid by the main contractor and the main contractor is responsible for their works.
−		+
−	The main contractors assumes responsibility for the ~~sub-contractor’s~~ performance. In effect the named sub-contractor becomes a domestic ~~sub-contractor~~, they are paid by the main contractor and the main contractor is responsible for their works.	+

	For more information see: Named subcontractor.		For more information see: Named subcontractor.
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	* Provisional sum.		* Provisional sum.
	* Subcontractor.		* Subcontractor.
		+
		+	[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings: Created page with "= Introduction = Contractors may not have all the required skills or resources necessary to complete the works described in a construction contract themselves, and so sub-contra..."

2018-06-18T09:00:38Z

Created page with "= Introduction = Contractors may not have all the required skills or resources necessary to complete the works described in a construction contract themselves, and so sub-contra..."

New page

= Introduction =

Contractors may not have all the required skills or resources necessary to complete the works described in a construction contract themselves, and so sub-contractors are commonly appointed to undertake those aspects of the project.

Typically, subcontractors are selected and appointed by the contractor. These are referred to as ‘domestic’ subcontractors.

For more information see: Subcontractors.

= Nominated subcontractors =

However, under certain circumstances, the client may wish to be able to select (or nominate) a subcontractor themselves, rather than allowing the contractor to select them. This is referred to as a nominated subcontractor.

This can happen, for example where the client has involved a subcontractor in the design process, where the client wishes to achieve a very specific outcome, where they already have an existing relationship, or where the client needs to secure the supply of long lead-time items. Nominated subcontractors may be selected before or after the contract is entered into with the main contractor.

Ultimately, the nominated subcontractor is still appointed by the main contractor, but they are imposed on them by the client. This can be allowed for in the contract by a prime cost sum, to which the contractor is permitted to add profit and attendance.

Nominated contractors are less common in the UK, and some forms of contract (such as Joint Contracts Tribunal (JCT) contracts) no longer include provision for the nomination of sub-contractors. This is because contractual arrangements allowing nomination are very complicated, and as the main contractor has no choice in the selection of the nominated sub-contractor, the contract may, or may not hold them entirely responsible for failure of the nominated sub-contractor to perform (depending on the exact wording of the contract). The contractor will however generally be allowed the right to object to the subcontractor under certain conditions. It the client still wishes to use the subcontractor, some contracts allow them to indemnify the main contractor against the possible consequences of this.

Because of these 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.

For more information see: Nominated subcontractor.

= Named subcontractors =

Naming subcontractors is an alternative method that allows the client to influence the selection of sub-contractors whilst leaving responsibility for their performance with the main contractor.

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 the subcontract package by including a provisional sum. When tendering for the main contract, the main contractor makes allowances for mark up, attendance and programme in relation to the subcontract package.

Once appointed, the main contractor seeks tenders for the package from the named sub-contractors (although they may reasonably object to any of the named sub-contractors). Once the main contractor has selected and appointed a sub-contractor the provisional sum is replaced with the actual price agreed.

The main contractors assumes responsibility for the sub-contractor’s performance. In effect the named sub-contractor becomes a domestic sub-contractor, they are paid by the main contractor and the main contractor is responsible for their works.

For more information see: Named subcontractor.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Attendance.
* Contractor.
* Domestic sub-contractor.
* Named specialist work.
* Named sub-contractor.
* Nominated subcontractor.
* Nominated supplier.
* Payments to nominated sub-contractors.
* Preliminaries.
* Prime cost sum.
* Provisional sum.
* Subcontractor.