Free issue material

The term "free issue material" refers to materials or equipment supplied by the client to the contractor to be incorporated into the construction project at no cost to the contractor. The client retains ownership of the free issue materials but the contractor is responsible for the care, custody, and control of the free issue materials once they are received. This includes handling, storage, and protection of the materials. Contractors might need to insure the free issue materials against risks like theft, damage, or loss while they are in their possession.

For example, a client commissioning the construction of a new office building decides to supply specialised lighting fixtures as free issue materials. The contractor receives these fixtures and is responsible for their proper installation. If any fixtures are damaged while in the contractor's custody, the contractor must address the issue, either through repair, replacement, or insurance claims.

The contract will usually specify the type, quantity, and quality of the materials to be provided by the client. The contract may also outline the timing and logistics of delivery to ensure materials are available when needed without causing delays to the project. If free issue materials are found to be defective or not up to the specified quality, the contractor may need to notify the client and seek replacements, potentially impacting project timelines.

The value of free issue materials is typically excluded from the contract sum but must be accounted for in the project's overall value and progress reporting.

Clients may secure better pricing for materials by purchasing directly or using preferred suppliers and they can ensure specific materials meeting their quality standards are used in the project. However, proper coordination is required to ensure materials are delivered on time and are compatible with the construction schedule, and contractors must provide suitable storage and security for the free issue materials to prevent damage or loss.

Contracts involving free issue materials should clearly define:

• The list of materials to be provided.
• Delivery schedules and responsibilities.
• Procedures for handling defects or shortages.
• Insurance and liability requirements.

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