Different types of Subcontractors & Novation Flashcards
455 What are domestic subcontractors?
They are a subcontract that the contractor has chosen to execute the scope. The Client/design team/ others do not have any influence over the selection of this subcontractor.
456 What are named subcontractor?
Client approved list of subcontractors from which the main contractor can select and tender the works to. Once appointed the named subcontractor becomes a domestic subcontractor.
457 What is the advantage of naming subcontractors?
That the Client holds some level of control over who the main contractor use. They may be selected as they will provide a certain product or service that the Client likes. Also the Client and vet them financially to satisfy themselves of their stability.
458 What are nominated subcontractors?
A subcontract that the Client specifically wants the main contractor to use. Usually imposed on the contractor.
459 What are the disadvantages of a nominated subcontractor?
That the main contractor may not wish to work for the nominated subcontractor for a number of reasons. The main contractor may also object to working with them on health and safety grounds. Also the Client may lose value for money as a nominated subcontractor is effectively a single source supplier.
460 What are the advantages of nominated subcontractors?
That the Client gets to decide who carries out that element of the works and it should be up to the standards of the Client.
461 Are you aware of any guidance from the RICS on Subcontracting?
Subcontracting 1st edition April 2021
435 What is novation?
Novation is the assignment of rights from one party to another. It is typically used when a designer designs part of a building for a Client, who then tenders the works as a D & B at which point the designer will move over to the contractors side to complete the design.
436 Are novation agreements required under traditional contracts?
No. Usually the designers remain on the Client side.
476 What is a PCSA?
This is a contract between the Client and the contractor for pre-construction services. The PCSA documents the services the contractor is to perform before signing the main building contract. It identifies the terms and conditions under which these services are to be performed.
477 When might a PCSA be used?
Typically they are used with a two stage design and build tender as it facilities early contractor involvement.
478 How can a PCSA benefit the project?
It may improve cost certainty, help integrate the teams early on and also may help with buildability
479 What sort of activity can the PCSA be used for?
To carry out design works, procurement of long lead items, procurement of materials, advise on buildability and methods of construction, develop the cost plan and to help out with planning applications.
