BUSINESS AND TRAINING
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• If acceptance of a design by the principal agent or specialist agent was late then neither the principal contractor or the subcontractor can be held responsible – but the employer may penalise the principal agent or specialist agent
Possible remedies
• If the design subcontractor delayed the works due to his ( in ) action , he may be penalised by the principal contractor
• If the design subcontractor delayed the works due to delays by the principal contractor or other subcontractors , no liability attaches to the design subcontractor
○ The principal contractor may be penalised by the employer
○ Other subcontractors may be penalised by the principal contractor
The principal contractor remains responsible to the employer for the execution of the works regardless of the number or type of subcontractors employed – who have no contractual relationship with the employer .
The works must be insured – preferably by the employer to include all subcontract work , that of direct contractors and any free issue supplied to the ( sub ) contractor .
In addition to the normal business insurances , a subcontractor undertaking design must have professional indemnity insurance to cover qualified design staff should a design be defective or fail or insure contractors ’ staff or the public .
To avoid potential disputes :
• Ensure timeous compliance with all statutory regulations
• Record all relevant events in notices with photographs and other supporting documents , and timeously follow all contract procedures
• Suspension of the works may be an option where payments are not received after expiry of a default notice
Remember , there is never enough time to complete the work , but there is always time to fix the mistakes .
All subcontractors must be weary if SfC is not to be signed or has been amended – probably to the disadvantage of the subcontractor . PA
“ Subcontractors are often appointed for their specialist skills – either during the design phase as a nominated subcontractor or afterwards by the principal contractor typically as a selected subcontractor .”
October 2023 Volume 29 I Number 8