Trade contractor
On construction management contracts, a construction manager is appointed on a consultancy and management basis to provide advice to the client during the pre-construction stages and then to manage the construction of the works. The works are divided into packages which are contracted to separate contractors. These contractors are referred to as trade contractors rather than sub-contractors (as they are contracted directly by the client, rather than being sub-contracted to the construction manager). The separate appointment of trade contractors should reduce the cost of contracts, as the management element is being provided by the construction manager. It also allows the advancement of some works (such as groundworks or piling) which might begin even before design of the above-ground works is complete.
Characteristics of trade contracts include:
- Trade contractors may be appointed through a single-stage procurement process, or through a two-stage process with a pre-construction services agreement for the first stage.
- Each trade contract must have its own separate practical completion certification and so they may have different defects liability periods. Certification cannot be dependent on completion of works outside of the scope of the contract. As trade contracts may be completed at different times, the construction manager must ensure that measures are in place to protect completed work from ongoing activities.
- Trade contracts (such as the Joint Contracts Tribunal (JCT) CM/TC 2011) do not include provisions for liquidated damages, instead the trade contractor indemnifies the client's direct loss and/or expense for lateness.
- Trade contracts may allow for retention, or may include a requirement for a retention bond.
- Trade contracts should include requirements to adopt collaborative practices.
- As there is no main contractor, trade contractors should provide master programmes for their works.
- Trade contractors should be required to provide regular information in relation to key performance indicators.
- Where they carry out design, trade contractors may be required to provide as-built drawings.
Notes
- On management contracts, contractors are known as 'works contractors'.
- For a detailed description of the sequence of tasks necessary on a construction management contract, see the work plan: construction management: outline work plan.
NB A trades contractor (with an 's') is a more general term which simply refers to a contractor who undertakes a particular class of construction work, such electrical installation. See Trades contractor for more information.
[edit] Related articles on Designing Buildings
- Back-to-back provisions in construction contacts.
- Collaborative practices.
- Collateral warranties.
- Construction manager.
- Construction contract.
- Contracting.
- Contractor.
- Contractors master programme.
- Main contractor.
- Management contract.
- Operative.
- Procurement route.
- Sub-agent.
- Sub-contractor.
- Trade body.
- Types of contractor.
- Works contractor.
Featured articles and news
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.
Delayed, derailed and devalued
How the UK’s planning crisis is undermining British manufacturing.
How much does it cost to build a house?
A brief run down of key considerations from a London based practice.
The need for a National construction careers campaign
Highlighted by CIOB to cut unemployment, reduce skills gap and deliver on housing and infrastructure ambitions.
AI-Driven automation; reducing time, enhancing compliance
Sustainability; not just compliance but rethinking design, material selection, and the supply chains to support them.
Climate Resilience and Adaptation In the Built Environment
New CIOB Technical Information Sheet by Colin Booth, Professor of Smart and Sustainable Infrastructure.
Turning Enquiries into Profitable Construction Projects
Founder of Develop Coaching and author of Building Your Future; Greg Wilkes shares his insights.
IHBC Signpost: Poetry from concrete
Scotland’s fascinating historic concrete and brutalist architecture with the Engine Shed.






















Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.