- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 05 Jan 2018
Typically, a contractor is able to purchase from their own choice of supplier, as long as they comply with the requirements set out in the specification. However, under certain circumstances, the client may wish to impose (or nominate) a particular supplier on the main contractor after the main contractor has been appointed.
- A particular product brand is required.
- The particular goods provided by the supplier are not widely available.
- There is an existing relationship with the supplier.
- Long delivery items are required where ordering is necessary before the appointment of a main contractor.
- Specialist design input is required in the early stages of design development.
- Complex or specialist industrial plant or equipment may be required, upon which the design will be based.
The mechanism for nominating is an instruction in relation to a prime cost sum to which the main contractor is entitled to add mark up and attendance costs. This allows the client to have direct separate negotiations with suppliers and feed their appointment into the contract after works by the main contractor have commenced.
A potential drawback of nominating a supplier is that the contractor is then not able to ‘shop around’ to obtain the best price or supplier. It is important therefore that suppliers are nominated with due consideration to their ability to supply in line with the project specification, programme and budget.
In addition, as the contractor has no choice in the selection of the nominated sub-contractor, they cannot be held responsible for their failure to perform. However, as the supply contract is with the main contractor, not with the client, the client should ensure that they have a direct warranty with the nominated supplier to guarantee performance and indemnify the client if any default allows a claim for loss and expense or extension of time by the main contractor.
 Related articles on Designing Buildings Wiki
Featured articles and news
GMP is an agreement with a contractor that the contract sum will not exceed a specified maximum. Read more here.
The BREEAM Sustainability Champion is changing to the Advisory Professional - here's what you need to know.
A fresh round of job-cuts takes the total number of redundancies to over 1,000.
Read our introductory article to the completion date in construction contracts.
Almost 90% of freight in London is moved by road. The River Thames could add much needed extra capacity.
National Infrastructure Commission warn that large infrastructure projects are at risk of falling behind.
The quality of Cambridge owes as much to its open spaces as to its architectural uniqueness.
If events occur that cause the completion of the works to be delayed then these may be compensation events.
BSRIA's new Building MOTs Scheme is designed to provide guidance on the next steps after compliance.
At an ICE discussion, the focus was on delivering a Northern Infrastructure Strategy based on opportunity for all.