Nomination in construction contracts
In the construction industry, the term nomination typically refers to the selection of a supplier or subcontractor by the client to carry out an element of the works. Nominated sub-contractors or suppliers are imposed on the main contractor after the main contractor has been appointed.
Nomination allows the client to have direct, separate negotiations with suppliers or sub-contractors and to feed their appointment and design input into the main contract after works by the main contractor have commenced.
The mechanism for nomination is an instruction in relation to a prime cost sum to which the main contractor is entitled to add mark up and attendance costs.
The contractual arrangements allowing nomination are very complicated, attempting to cover all possible eventualities both between the client and the main contractor and also between the main contractor and the nominated party.
For more information about specific nomination procedures see:
Nomination is still common on international projects, but some forms of contract in the UK no longer include provision for nomination because of the complexities involved. The use of named sub-contractors and named suppliers is generally considered to be a simpler alternative.
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