The nominated subcontractor is part of the Conditions of Contract. The Client identifies a preferred source and they determined that they want the materiar or service to come from that source.
The subcontractor on the other hand, is selected by the Contractor and submitted to the Engineer for approval.
Usually the Main Contractor has a reduced responsibility for Nominated Sub-Contractors own defaults.
This is why a true nomination is very rare these days - the Employer uses terms such as "Preferred" or "Named" to get the Main Contractor to enter into a Domestic sub-contract with what is in reallity a nominated sub-contractor.
Generally the term Back to Back Contract mean that the Sub Contractor has the same level of risks and benefits that the Main Contractor has with the Employer.
It applies to Domestic Sub-Contracts as Nominated Sub-Contractors are usually less risky for the Main Contractor to employ.
Member for
16 years 11 monthsRE: General contract doubts
Thanks Samer
Member for
17 years 3 monthsRE: General contract doubts
Dear Shahul,
The nominated subcontractor is part of the Conditions of Contract. The Client identifies a preferred source and they determined that they want the materiar or service to come from that source.
The subcontractor on the other hand, is selected by the Contractor and submitted to the Engineer for approval.
With kind regards,
Samer
Member for
16 years 11 monthsRE: General contract doubts
Thanks Mike
Member for
19 years 10 monthsRE: General contract doubts
Hi Shahul
As always it depends on the contract.
Usually the Main Contractor has a reduced responsibility for Nominated Sub-Contractors own defaults.
This is why a true nomination is very rare these days - the Employer uses terms such as "Preferred" or "Named" to get the Main Contractor to enter into a Domestic sub-contract with what is in reallity a nominated sub-contractor.
Best regards
Mike Testro
Member for
16 years 11 monthsRE: General contract doubts
Hi mike
Thanks .In addition ,do nominated subcontractor have back to back contract with main contractor?
Will Nominated subcontractor have separate condtions of contract laid by employer ?
Member for
19 years 10 monthsRE: General contract doubts
Hi Shahul
Generally the term Back to Back Contract mean that the Sub Contractor has the same level of risks and benefits that the Main Contractor has with the Employer.
It applies to Domestic Sub-Contracts as Nominated Sub-Contractors are usually less risky for the Main Contractor to employ.
Best regards
Mike Testro