Named supplier in construction contracts
To name suppliers, the client first identifies a list of potential suppliers. They may invite these potential suppliers to submit tenders. The client then names a short-list of acceptable suppliers in the tender documents for the main construction contract. The tender documents allow for the named suppliers 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 named suppliers. Once appointed, the successful contractor seeks tenders from the named suppliers (although they may reasonably object to any of them). If the client previously sought tenders form the named suppliers, they may pass these on to the main contractor, although it is the responsibility of the main contractor to negotiate an actual price.
The main contractor pays the named supplier and the main contractor is responsible for their works. However, if the materials or goods supplied turn out not to be fit for purpose, then whoever named them will be responsible, not the contractor, unless the contractor was able to choose from a number of products available from the named supplier and they selected one that was unfit for purpose when others were available.
 Related articles on Designing Buildings Wiki
Featured articles and news
What is liquidation and how does it apply to contractors in the construction industry?
Scrutiny is placed on Carillion's controversial 2013 decision to extend subcontractor payment terms to 120 days.
RSHP unveil their involvement in a boundary crossing which will provide a new entry point into Hong Kong.
With PFI currently under the spotlight due to Carillion, this introductory article explains what they are.
Estimates suggest that up to 30,000 small firms could be at risk of non-payment as a result of Carillion's collapse.
Sir Oliver Letwin to lead an independent review into the delays in the delivery of housing.
As Carillion collapses, read our article explaining insolvency in the construction industry.
43,000 jobs at risk as Carillion declares insolvency..
1961 saw the publication of three important books about urban design that remain relevant today.
Next week the planning fee increases by 20% and new fees are introduced.
How the transformative power of BIM and other digital technologies can be used to gain a competitive edge.