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What is the difference between a principal contractor and a subcontractor?


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2006-07-14 18:49:34
2006-07-14 18:49:34

The primary contractor is responsible for the entire project and coordinating the efforts of the subcontractors. The subcontractors are responsible for specific trades, such as plumbing, heating, concrete or electrical. General contractors are more like managers and coordinators, but many have a crew of their own and perform some of the subcontract tasks. In most states, it is not legal for a general contractor to perform some of the specialty trade jobs, such as plumbing, electrical or heating.

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principal runs a school. a contractor builds buildings.

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subcontractor join to main contractor to form joint venture but that venture is not partnership

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The prime contractor is contracted by the end customer. Sub-contractors are contracted by the prime contractor or other sub-contractors.

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Are you the contractor, the subcontractor, or the person who hired the contractor in the first place? If you're the person who hired the general contractor, you don't have to do anything - this is between the general contractor and the subcontractor. As long as you pay the contractor the agreed-upon price, you can wash your hands of the matter. If you're the subcontractor, and the general contractor who hired you is not paying what he owes, you can sue him for breach of contract. If you are the general contractor, you better have a really good reason for not paying the subcontractor (the subcontractor materially breached its contract with you, for example).

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a nominated subcontractor, with various provisions for obtaining indemnities by the subcontractor (or Employer) but under the main contractor responsibility and coordination, or ** another contractor, which FIDIC provides the incumbent Main Contractor is required to give site access, etc, etc to but coordinated by the Employer My own understanding, very simply put is that a nominated subcontractor is actually a "normal" subcontract between Main Contractor and Subcontractor, BUT that the nominated subcontractor is selected by the Employer and price agreed with the Employer directly. That would mean that the Main Contractor has the accountability for the subcontractor, notwithstanding any indemnities. The Consultant has stated today that in their opinion: ** the nominated subcontractor is selected by the Employer and signs a contract direct with the Employer ** the Employer will secure assurances, bonds / performance sureties and warranties direct with the subcontractor, and ** that the Main Contractor DOES NOT sign a subcontract with the subcontractor ** that the main Contractor will not be held liable for certain specified warranties My understanding is that the Main Contractor still should sign a subcontract with the nominated subcontractor and assumes the responsibilities of a Main Contractor over the Subcontractor - though the Employer states that the Main Contractor has no liability specified warranty issues and quality (only). I would believe the Main Contractor still has a number of responsibilities in respect of the subcontractor and their general performance. The Consultant assures they have checked FIDIC and it is normal for the Employer to sign a subcontract direct with the Nominated Subcontractor. I would believe in that case it is not a "Nominated Subcontract", but instead a direct supplementary contract between the Employer and their Contractor (secondary contractor) Can you kindly advise quite simply, the contractual position of a nominated subcontract under FIDIC ...... ie does the Employer sign the contract / subcontract with the Nominated Subcontractor, or is it a subcontract between Main Contractor and Nominated Subcontractor with the normal (in general terms) obligations by the Main Contractor for the Subcontractor, to the Employer.


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