Posted on: February 4, 2019

Weekly Tips From January

Weekly Tip #1

Subcontracts Linked to Main Contracts

When a new Subcontract lands across your desk how often does it come with a copy of the Main Contract or how often do you ask for a copy? It’s rarely done. Subcontractors will innocently sign because they simply don’t understand all of the jargon. They often know there are risks but agree to it because they need the work in the hope this won’t be a problem contract.

When working as a Subcontractor, the majority of agreements will include various risks that Subcontractors unknowingly agree to. A perfect example of this are a clause(s) linking your Subcontract to the Main Contract which may then also shift responsibility of the Main Contract onto the Subcontractor.

Always adequately check your agreements and ensure to check for provisions like this which may have implications further into the project.

Weekly Tip #2

Post Tender Amendments

When pricing work if you add clarifications / qualifications make sure that these are included in the Contract that you sign. Good practice is to add as an Apendix or as a Post Tender Amendment.

Do not blindly assume that because it’s in the price it’ll automatically carry through.

Weekly Tip #3

Protecting Your Subcontract

So this week lets touch on programmes. A few tips below to help towards protecting your Subcontract:

1. Format – Contracts have a range of programme types that clients ask for. The most popular are Primevera P6 and Microsoft Project. Check what is needed before submitting

2. Timelines – Your contracts will show the times programmes need to be submitted initially and then updated. Follow them.

3. Cost Load – Most Contracts will ask for this anyway but it is always good practice to cost load your programmes. This lets you show what work value was planned in each time period and can help to justify when works have been delayed, will need to be re-rated or simply to justify how much the item is worth if not working to agreed rates.

4. Acceptance – Very few, if any, Contracts automatically accept a programme once submitted. The client / MC need to approve these. It is your responsibility to ensure this is followed up. Do not stay silent and assume that this is accepted.

5. Payment – Most Contracts also require a copy of an updated programme to be submitted with payment applications. Some Contracts (e.g NEC) even have a percentage your client can deduct if this is not done.