- Introduction
Many construction contracts require the contractor to enter into
an agreement with a subcontractor for a specialised task of the
contractor's scope of work. The subcontractor can be either
selected by the contractor or the employer of the contractor. When
the subcontractor is selected and employed solely by the contractor
the subcontractor is termed as a domestic
subcontractor, however when the subcontractor is selected and
employed by the employer, the subcontractor is then termed as
a nominated subcontractor. Although the employer has
selected the subcontractor, the contractor signs the agreement with
the sub-contractor and remains responsible for the works done. In
simple words, a nominated subcontractor is selected by the employer
and imposed on the contractor. However, whether the nominated
subcontractors' defaults and delays place a liability on the
employer or the contractor has always been a point of
contention.
