Subcontract procurement
The classic 19th-century definition of a contract is 'a promise or set of promises which the law will enforce' (ref. Pollock, Principles of Contract 13th edition). That is, there is reciprocity of undertaking passing between the promisor and the promisee.
In the construction industry, the main contract is typically the tier 1 contract between the client and the main contractor.
A subcontract is a contract that involves a subcontractor undertaking part of the main contract on behalf of the main contractor. This is generally a tier 2 contract.
Subcontracts normally involve work of a specialist nature carried out by specialist subcontractors Subcontracts on a project can encompass many trades but commonly include:
- Bricklayers.
- Cladding installers.
- Concrete installers.
- Drainlayers.
- Electricians.
- Joiners.
- Scaffolders.
- Steel erectors.
- ICT installers.
- Building services.
Procurement is the process of purchasing goods or services. Procuring subcontractors is the process by which these various specialist trades are brought into a project.
Traditionally there have been three main types of subcontractor:
- Domestic subcontractor. A subcontractor selected and appointed by the main contractor.
- Nominated subcontractor. A subcontractor selected by the client to carry out an element of the works.
- Named subcontractor. A subcontractor selected from a list of acceptable sub-contractors provided by the client.
However, on large or complex projects, the work will cascade down the supply chain to a plethora of subcontractors, sub-subcontractors, and so on.
One of the problems in the construction industry is that the first and second tier of the supply chain sign up to fairly onerous agreements but as the chain develops, so the contractual liabilities decrease until suppliers at the end of the chain are often not locked in at all.
In recent years larger companies offering continuity in construction have taken an increasing interest in establishing relationships beyond direct, first tier suppliers. Framework contracts and partnering agreements have pioneered this approach, encouraging the involvement of selected suppliers at relatively early stages of projects while offering continuity of work.
An integrated supply team is one that involves the integration of the complete supply chain involved in the delivery of a project. Under this route, the entire supply team may be appointed after the project brief has been prepared, often under just one contract rather than separate contracts with each individual company.
[edit] Related articles on Designing Buildings Wiki
- Collaborative practices.
- Construction supply chain payment charter.
- Contract sum.
- Contractor.
- Domestic sub-contractor.
- Named specialist work.
- Named sub-contractor.
- Nominated subcontractor v named subcontractor.
- Nominated supplier.
- OJEU.
- Payments to nominated sub-contractors.
- Preliminaries.
- Prime cost sum.
- Procurement route.
- Selected subcontractor.
- Sub contractor.
Featured articles and news
Retired firefighter cycles world to raise Grenfell funds
Leaving on 14 June 2025 Stephen will raise money for youth and schools through the Grenfell Foundation.
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.
Architects, architecture, buildings, and inspiration in film
The close ties between makers and the movies, with our long list of suggested viewing.
SELECT three-point plan for action issued to MSPs
Call for Scottish regulation, green skills and recognition of electrotechnical industry as part of a manifesto for Scottish Parliamentary elections.
UCEM becomes the University of the Built Environment
Major milestone in its 106-year history, follows recent merger with London School of Architecture (LSE).
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
International Electrician Day, 10 June 2025
Celebrating the role of electrical engineers from André-Marie Amperè, today and for the future.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.
Skills England publishes Sector skills needs assessments
Priority areas relating to the built environment highlighted and described in brief.
BSRIA HVAC Market Watch - May 2025 Edition
Heat Pump Market Outlook: Policy, Performance & Refrigerant Trends for 2025–2028.
Committing to EDI in construction with CIOB
Built Environment professional bodies deepen commitment to EDI with two new signatories: CIAT and CICES.
Government Grenfell progress report at a glance
Line by line recomendation overview, with links to more details.
An engaging and lively review of his professional life.
Sustainable heating for listed buildings
A problem that needs to be approached intelligently.
50th Golden anniversary ECA Edmundson apprentice award
Deadline for entries has been extended to Friday 27 June, so don't miss out!
CIAT at the London Festival of Architecture
Designing for Everyone: Breaking Barriers in Inclusive Architecture.
Mixed reactions to apprenticeship and skills reform 2025
A 'welcome shift' for some and a 'backwards step' for others.