Three types of subcontractors are identified in the contract law of the UK construction industry, particularly when using standard JCT contracts: despite the above provisions, the PBA clarifies that there are no contractual rights or obligations between the employer and a subcontractor appointed by the contractor (Cl. 14.8 & 15.8). However, a design responsibility assumed by a subcontractor is not assumed by the contractor, except for the temporary work of subcontractors (Cl. 7.2). Instead, the ABP provides for the automatic assignment to the employer of all “contractual or other rights” that the contractor has vis-à-vis the subcontractor with respect to responsibility for the design, at the pre-final completion stage or at the time of termination of the contract (Cl. 21.11). Clause 15.1.5 of the JBCC states: “The Principal Agent shall inform the Contractor if an advance payment is to be made to the Subcontractor of an amount included in the accepted Offer and the Subcontractor shall provide an advance payment guarantee for the specified account.” Advance payment guaranteed to be received from a reputable financial institution. As quantity surveyors and senior agents in an advisory position, we take care of the client`s best interests and have a duty of care towards the project. Therefore, we need to minimize the risk to the customer as much as possible. It is therefore advisable to designate subcontractors as selected subcontractors, which creates a fair and better contractual agreement between all parties. The responsibilities of all parties are clearly defined in the JBCC and the payment terms clearly state that an early repayment guarantee is required for the deposit required by the selected subcontractors. Subcontractors (also known as “subcontractors”) are typically small businesses that specialize in a particular type of construction work. Because they specialize, submarines can be more effective than someone who is a generalist.

However, the work of the subcontractor will have a positive or bad effect on the contractor who hires him. Contractors typically hire subcontractors. Therefore, contractors should carefully check a subcontractor`s credentials before hiring. The contractor will also want to sign a subcontract. As an owner, you can request information about the subcontractors hired by your contractor, e.B. Experience or references, but the contractor is responsible for the work that a subcontractor performs. In addition, the N/SA contains various provisions that are practically for informational purposes only. For example, the provisions relating to the contractor`s designation of designated and selected subcontractors are largely for informational purposes, as the contractor`s obligations are primarily those under the PCA (Cl. 14 and 15). The subcontractors selected (Cl.

15.0) are those selected by the main agent together with the contractor. The Contractor continues to participate in the review of subcontractors` bids, but must also select the successful bidder to be appointed in consultation with the Prime Contractor. If a subcontractor`s period of liability extends beyond that of the contractor, the contractor`s obligation and liability for the subcontractor`s defects ends on the day the final certificate of completion is issued. The remaining part of the subcontractor`s liability period for defects is assigned to the employer at that time (Cl. 21.11). The regulation of the designated/selected subcontractor also provides that the customer requires the contractor to provide proof of payment to the subcontractors (Cl. 14.5 & 15.5); otherwise, the principal representative may certify the direct payment to the subcontractors and collect the amount from the contractor in the following interim payment certificate. The subcontractors designated (Cl.

14.0) are those designated by the Customer(s) for commissioning by the Contractor. This follows a tendering procedure in which the contractor has the opportunity to consult the principal representative during the examination of tenders. The Contractor may refuse to designate a designated subcontractor if it raises a “reasoned objection”; or if the subcontractor refuses or fails to enter into a subcontract or provides the contractor with the necessary guarantee (Cl. 14.2). Only these last two grounds apply to the contractor`s refusal to engage a selected subcontractor (Cl. 15.2). The quality of a project depends on the quality of the subcontractors who carry out the work. The work of these important people can also have a big impact on the schedule and final cost of a project. Some contractors designate subcontractors for the work under a “pay if paid” clause, sometimes referred to as a “pay if paid” clause, where the general contractor works with subcontractors and the subcontractor is only paid when the general contractor is paid for their duties. [2] Subcontractors are hired to reduce costs or mitigate project risks […].