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
Recharging Electrical Skills in Wales
Step by step collaborative solutions.
Ireland budget announcement 2025
CIOB responds with positivity, criticism and clarity.
The continued ISG fall out, where to go?
Support for ISG contractors, companies and employees.
New HES national centre for traditional building retrofit
Announced as HES publishes survey results which reveal strong support for retrofit.
Retrofit of Buildings, a CIOB Technical Publication
Expected to become one of the largest activities in the global construction industry.
Scope determination appeals and the Building Safety Act
Process explained following release of appeals guidance.
The ECA industry focus video channel
Keeping update with the industry session by session.
Over 25 recorded informations sessions freely available.
AT Awards 2024 ceremony East London October 25th.
Revisiting the AT community at the 2023 awards evening.
The Community Housing Fund and built affordable homes
CLTN reviews the impact of the Fund and calls for extension.
The grading system of the Regulator for Social Housing
A background, an explanation and ten recent enforcements.
Construction, repair and maintenance. Book review.
Putting new life into a city with a 1900 year history.
BSRIA Briefing 2024: Sustainable Futures speakers
Redefining Retrofit for Net Zero Living 22 Nov.
Wall of support for post-Grenfell regulation of electricians
Call for a shake-up of the construction industry highlighted on radio.
Digital sustainability through future AEC tools
Bringing together industry and academia to meet challenges.
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.