JCT Intermediate Contract: What You Need to Know About Named Subcontractors
A JCT Intermediate Contract is a standard form of contract commonly used in the UK construction industry. It defines the rights and obligations of the parties involved in a construction project, including the employer, the contractor, and any named subcontractors. In this article, we will focus on named subcontractors and their role in JCT Intermediate Contracts.
What is a Named Subcontractor?
A named subcontractor is a subcontractor that has been specifically identified in the JCT Intermediate Contract by the employer or the contractor. The contract will state the name of the subcontractor, the work they are responsible for, and the contract sum. The named subcontractor will have a separate contract with the employer or the contractor, which is usually based on the terms of the JCT Intermediate Contract.
Why Are Named Subcontractors Used?
Named subcontractors are often used in construction projects to ensure that the work is carried out by a specialist contractor who has the necessary expertise, equipment, and resources. By naming a subcontractor in the JCT Intermediate Contract, the employer or the contractor can ensure that the subcontractor is:
– Qualified: The named subcontractor will have the necessary qualifications and experience to carry out the work to a high standard.
– Reliable: The named subcontractor will have a proven track record of delivering similar projects on time and within budget.
– Cost-effective: The named subcontractor will have a competitive contract sum, which has been agreed in advance with the employer or the contractor.
What Are the Risks of Using Named Subcontractors?
While named subcontractors can provide many benefits in a construction project, there are also some risks that need to be considered. These risks include:
– Delay: If the named subcontractor is delayed in completing their work, it can cause a delay to the overall project timeline.
– Quality: If the named subcontractor does not deliver work to the required standard, it can result in additional costs and delays to rectify the work.
– Insolvency: If the named subcontractor becomes insolvent and cannot complete the work, the employer or the contractor may need to find a replacement subcontractor, which can cause delays and additional costs.
How to Mitigate the Risks of Using Named Subcontractors?
To mitigate the risks of using named subcontractors, it is important to:
– Carry out due diligence: Before naming a subcontractor in the JCT Intermediate Contract, carry out due diligence to ensure that they are qualified, reliable, and cost-effective.
– Set clear expectations: Clearly define the scope of work, quality standards, and timelines in the JCT Intermediate Contract to ensure that the subcontractor fully understands their obligations.
– Establish a backup plan: Have a contingency plan in place in case the named subcontractor is delayed, does not deliver work to the required standard, or becomes insolvent.
Named subcontractors play a significant role in JCT Intermediate Contracts by providing specialist expertise, equipment, and resources. While they can provide many benefits to a construction project, there are also risks involved. It is essential to carry out due diligence and establish clear expectations to mitigate the risks of using named subcontractors.