Sub-contractor
Contents |
[edit] Introduction
As buildings become increasingly complicated, so it becomes less and less likely that any one contractor will have the required skills to carry out all of the works necessary to construct them, and it may not make good commercial sense to take on new employees for one project that would then have to be laid off for the next.
Increasingly therefore, contractors will use sub-contractors to carry out particular elements of the works. Sub-contractors (or subcontractors) are sometimes referred to as 'subbies', or increasingly, simply as 'suppliers'.
Elements of the works that might be awarded to sub-contractors might include; piling, roofing, cladding, civil engineering, steelwork, plumbing, electrical services, and so on.
[edit] Types of sub-contractor
There are three main types of sub-contractor:
[edit] Domestic sub-contractor
A sub-contractor selected and appointed by the main contractor.
[edit] Nominated sub-contractor
A sub-contractor selected by the client to carry out an element of the works. The client negotiates a price with the nominated sub-contractor and then instructs the main contractor to appoint them for those works.
The main contractor will include the sub-contractors price as a prime cost sum in the contract sum for the main contract, to which they add overheads, profit and attendance. Some forms of contract (such as Joint Contracts Tribunal (JCT) contracts) no longer include provision for the nomination of sub-contractors.
[edit] Named sub-contractor
A sub-contractor for a particular package selected from a list of acceptable sub-contractors provided by the client. Named sub-contractors are allowed for in the tender documents for the main contract in the form of a provisional sum for which the main contractor makes allowances for mark up, attendance and programme within it’s tender offer.
Once appointed, the main contractor seeks tenders for the package from the named sub-contractors, places a sub-contract with the successful tenderer, and the provisional sum is replaced with the tendered figure.
NB According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘subcontractor' means; ‘…a contractor who undertakes specific work within the building project; known as specialist, works, trade, work package, and labour only subcontractors.’
[edit] Use of sub-contractors
The use of sub-contractors enables the main contractor to undertake more complex projects whilst not unacceptably increasing their risk, however, concerns have been expressed about the prevalence of sub-contractors because of a perception that the main contractor has less control over the skills and training of sub-contractor employees and so there may be a negative impact on quality and health and safety on site.
Sub-contractors might be managed by the contractors' sub-agent or package manager.
Increasingly, sub-contractors will themselves sub-contract elements of their package of works to other suppliers. This has resulted in the development of complex supply chains, with different tiers of suppliers, some of whom may be entirely unknown to the client. For more information see: Suppliers.
'Attendance' is the main contractor’s mark up for specific services it has to provide for individual sub-contractors. This might include items such as material handling, scaffolding and rubbish clearance. Attendance can be 'general attendance' describing items available site wide to all subcontractors, or 'special attendance' where items are specific to a particular contractor/subcontractor.
NB: On management contracts the works will be carried out by 'works contractors' and on construction management contracts the works will be carried out by 'trade contractors', although technically trade contractors are not sub-contractors as they are contracted by the client, and only managed by the construction manager.
[edit] Related articles on Designing Buildings
- CIS contractors and CIS sub-contractors.
- Construction Industry Scheme or IR35?
- Contractor vs supplier.
- Domestic sub-contractor.
- Fragmentation of the UK construction industry.
- Main contractor.
- Named specialist work.
- Named sub-contractor.
- Negotiated contract.
- Nominated sub-contractor.
- Nominated subcontractor v named subcontractor.
- Procurement route.
- Reasonable objection.
- Selected subcontractor.
- Specialist contractors.
- Specialist subcontractor.
- Status determination statement SDS.
- Suppliers.
- Supply chain.
- Top seven trends that will dominate the future of the construction industry
- Trade contractor.
- TUPE considerations and bidding.
- Types of contractor.
- Works contractor.
[edit] External references
Featured articles and news
IHBC’s response to Parliamentary Committee
On Levelling-Up and Regeneration Bill.
Finalists for 2022 CIOB Awards revealed
Over 70 managers and organisations shortlisted for the 14 awards.
Types of building sensors on BD
From biometric to electrical current, chemical and more.
Government mandates detectors in rented homes
Changes are due to come into force on 1st October 2022.
80% of major government projects are rated red or amber
Heed advice and insight of this report IPA tells the government.
The end of the games but continued calls for action
From the Commonwealth Association of Architects.
CIOB respond to the government call for evidence
For the Levelling Up, Housing & Communities Committee.
How are buildings and their occupants responding to extreme heat?
BSRIA's Technical Director reflects on recent weather patterns.
Landownership in England in 1909
A national valuation to fund old-age pensions.
The world’s largest Commonwealth memorial to the missing.
Long after the end of the defects liability period.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing in buildings.
Geometric form and buildings in brief
From the simple to the complex.
Understanding the changing nature of insulation
And the UK Government guidelines.
Three year action plan to improve equity, diversity and inclusion
Commitment agreed to by major built environment bodies.
The Construction Route – what needs to change?
Electrical skills, low carbon, high-tech and the building services revolution.
Deep geothermal power possibilities
Ultra-deep drilling with millimeter-wave beam technology.
BSRIA Briefing 2022- From the outside looking in
Looking at the built environment from space.
Competence requirements for principal contractors and designers
BSI standards 8671, 8672 and 8673.
Bringing life to burial grounds.
From failed modernism to twenty-minute neighbourhoods.
Design chill and design freeze
The gates process and change control.
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.