12. Types and Classification of Engineering Contract Flashcards Preview

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31

What is meant by a nominated subcontractor?

Selected by the Principal without reference to the Main Contractor. As a general rule, a Provisional Sum in the Contract covers the work carried out by a Nominated Subcontractor. Frequently, the Principal independently invites tenders for the work under the subcontract, and directs the Main Contractor to enter into a subcontract with the Nominated Subcontractor selected on terms and conditions negotiated by the Principal. As with Designated Subcontractors, the principal accepts responsibility for nominating a new subcontractor in the event of the Nominated Subcontractor defaulting and is liable for any resulting costs.