Subcontracting with the Latest NEC4 and JCT

Courses Overview:

This 1 day course deals with the legal and associated commercial issues involved in Subcontracting including risk and the allocation of risks between the Parties, setting up the Subcontract and common problems that arise all too often.

The course will consider the subject matter in the context of the NEC and JCT Subcontract forms and will make comparisons with previous Subcontract arrangements including Dom/1, Dom/2 and the CECA blue form. This course will most benefit those working for contractors, subcontractors and suppliers.

Benefits of this course:

Gain an understanding of Subcontracts and the relationship with main contracts
Get to grips with obligations of subcontractors and contractors
Gain knowledge of payment procedures for subcontractors
Define financial compensations and how to claim
Benefit from a post seminar help line
Understand the vital points in the successful management of time, quality and valuation of subcontracts

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What is a Subcontract
• What is a Subcontract compared to other legal relationships
• Review the contractual chain and the relationship between the parts in that chain
• Documentation – setting up the Subcontract
• Compare JCT and NEC subcontracts and the progression from other forms such as
Dom/1, Dom/2 and CECA
• The link between the main and subcontract, priority of documents
• Consider Collateral Warranties, Bonds and Parent Company Guarantees

Subletting – Do’s and Don’ts
• Subletting parts/whole of the Works
• Defining Subcontract scope
• Avoiding the mismatch between the main and subcontract
• Incorporating unnecessary documents
• Choosing the wrong form
• Letters of Intent
• The legal problems of using variations instead of Subcontracts
• Limiting liability and liquidated damages
Allocation of risks and responsibilities – the subcontract forms compared
• Comparison of the various Subcontracts available from NEC and JCT and earlier versions of Subcontracts in building and civil engineering works
• Design – development and liability
• Quality and control

Subcontractors and contractor’s obligations – Management and administration
Consider the role of on and off site management in:
• Subcontract administration,
• Notices,
• Instructions
• Record keeping
• Communication
• Working hours
• Restrictions (access, storage etc) protection of the works
• Meetings
• Early warning

Payment procedures and valuation
• Interim and final payment – timing, valuation, applications, mechanisms and default procedures
• Set off and withholding/pay less
• Valuing/assessing the subcontract works, variations, changes, provisional sums, measurement and procedures
• Quotations
• Retention Bonds
• Interest
• Main and secondary options with the NEC Target Costs
• The ‘New’ Construction Act

Time and completion
• Fixing the time for the Subcontract -Start and finish
• Sections/parts
• The link with the Main Contract
• Programmes – importance and significance
• Progress delays
• Extension of time/compensation
• Completion/practical completion
• Making good defects – procedures and response times
• Delay damages

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