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Nominated Subcontractor & Delegated subcontractor

5 replies [Last post]
Sat, 2006-10-14 12:11
Puthenpurayil sug...
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Hi,

In a lump sum contract project,Client has nominated some supply through Nominated subcontractors and issue a mark up to main contractor ( say 3% )for this item of work.After that the same client issued a letter to main contractor to collect three quotations for other item of work which is not nominated by client.This supply of item work the client referred as Delegated items.
What is the difference between these ?
How the client differentiate this contractualy ?
Please comment
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Replies

Sun, 2006-10-22 09:11
#1
Andrew Flowerdew
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Srinivas,

Where your contract says he does.

If your contract is silent on all such matters then you are correct that the starting position for liability is that the Main Contractor is responsible for everything.

It is not uncommon though that the contract will says the Employer is responsible for delays or fitness for purpose and occasionally workmanship or defects.
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Sun, 2006-10-22 06:36
#2
srinivas reddy
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hi andrew

afaik...
Main contractor will be fully responsible for Nominated subcontractor performance in all respects

if this is not correct can you please point out the areas where the Main contractor passes on the performance liabilty (of NSC) to the Client

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Sat, 2006-10-21 08:27
#3
Andrew Flowerdew
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Puthenpurayil,

The process of the Employer giving a list of sub contractors (to which the Main Contractor may or may not be able to add to) for the Main Contractor to go and get tenders from comes from the failure in the past for the nomination process to successfully pass liability for the nominated subcontractor onto the Main Contractor.

The process where the Employer gave the Main Contractor a list of companys to send tenders out to was invented. In the UK this became known as appointing a "Named Sub Contractor or Supplier".

The process gives the Employer some control over who is going to do the work (obviously not as much as in nomination) but because the process is much similar to the main Contractor letting any domestic sub contract, the named sub contractor is for all purposes a domestic sub contractor (or supplier) of the Main Contractor.
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Thu, 2006-10-19 15:25
#4
Puthenpurayil sug...
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Dear Andrews,

The answer about the meaning of Nominated subcontractor and delegated subcontractor U explained is splendid !! It is nothing out of an" escapisum "of limited time with the Client.
In technically and in FIDIC no meaning in the wordings of "Delegated subcontactors".
The markup as per clause is varing for " Delegated " ?!! How ?11
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Wed, 2006-10-18 18:38
#5
Andrew Flowerdew
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Puthenpurayil,

The first sub contractor is a Nominated sub contractor - as is obvious - ie the contract may make the Employer liable for certain aspects of the sub contractors performance.

The second sub contractor or supplier is to be treated as a domestic subcontractor, (another term oftem used would be a "Named Sub Contractor" ie the Main Contractor remains fully responsible for the performance of the sub contractor.
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