In mid-big sized construction projects, the subcontract is a
crucial part of the entire project. The various issues involved in
subcontracting part of the works can determine the success or the
failure of a project and/or can massively increase the financial
risks and/or losses for either the Employer or the Contractor. The
present note is the first of a series of three and will address the
main issues and pitfalls which may arise out of the subcontracting
of part of the scope of the works and suggests some solutions for
the benefit of the parties.
The reasons why a Contractor subcontract part of the works can
be various such as that the project is a large one or that a
specific part of the scope of works requires specific skills and
expertise that the Contractor does not have. There are also cases
where it is the Employer which requires that part of the scope of
work be carried out by Subcontractors with specific and
'proved' experience.
