Q:

What is a nominated subcontractor?

A:

A nominated subcontractor is a contractor who is used by a main project contractor to carry out a portion of a particular contract. This term is normally used in the construction industry.

In such cases, the client chooses a contractor to carry out a specified portion of the construction, or even all of it. The main contractor may then subcontract other contractors in order to fulfil his obligations. A practical example of this is when a client asks a contractor to build him a house, and the latter subcontracts the responsibility of materials supply to another party so as to allow him to complete the project on time.

There are other types of subcontractors, including domestic and named subcontractors. The main difference between those types of subcontractors and a nominated subcontractor is that the client has influence in the selection of a nominated subcontractor. In addition, the client may also negotiate for some of the subcontractor's terms. This gives the client more flexibility in overseeing the entire project.

When consulting a contractor, it is important to find out if the contractor uses subcontractors to carry out the tasks. The client may then fine-tune the agreement to accommodate this to ensure that quality and value for money are maintained throughout.

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