Fidic Nominated Subcontractor Agreement

The FIDIC Nominated Subcontractor Agreement: What You Need to Know

If you`re involved in construction, you`ve likely heard of the FIDIC (International Federation of Consulting Engineers) contracts. These standard contracts are often used across the globe in major infrastructure projects. One such contract is the FIDIC Nominated Subcontractor Agreement.

What Is the FIDIC Nominated Subcontractor Agreement?

The FIDIC Nominated Subcontractor Agreement is a standard form contract used when a subcontractor is appointed by the main contractor. It`s used when the main contractor wants to appoint a specific subcontractor, rather than going through the traditional tendering process.

The appointment of a nominated subcontractor can be a significant decision for the main contractor, as they are putting their trust in the subcontractor to deliver a specific scope of work. The FIDIC contract aims to formalize this appointment and ensure that both parties understand their rights and obligations.

Key Features of the FIDIC Nominated Subcontractor Agreement

Here are some of the key features of the FIDIC Nominated Subcontractor Agreement:

– Scope of Work: The agreement should clearly define the scope of work that the subcontractor will be responsible for.

– Time for Completion: The contract should specify the time for completion of the subcontractor`s work and outline what happens if the subcontractor fails to meet the deadline.

– Payment: The payment arrangement should be clearly defined, including the amount to be paid and when payments will be made. The contract should also cover any adjustments to the contract price.

– Variations: The contract should outline the procedure for making changes to the scope of work and associated costs.

– Suspension and Termination: The agreement should cover circumstances that may lead to suspension or termination of the contract.

– Dispute Resolution: The contract should lay out a dispute resolution process, such as mediation, arbitration, or litigation.

Benefits of Using the FIDIC Nominated Subcontractor Agreement

Using a standard form contract like the FIDIC Nominated Subcontractor Agreement brings numerous benefits:

– Clarity: Both parties are clear on their rights and obligations, reducing the likelihood of disputes.

– Efficiency: Using a standard form contract can save time and money, as there is no need to draft a new contract from scratch.

– Consistency: Using a standard form contract ensures consistency across projects, making it easier to manage subcontractors and enforce contracts.

– Legal Coverage: The FIDIC contracts are recognized globally and provide a level of legal coverage for both parties.

Conclusion

The FIDIC Nominated Subcontractor Agreement is a standard form contract that provides a clear framework for the appointment of a nominated subcontractor. It covers key aspects such as scope of work, time for completion, payment, variations, suspension and termination, and dispute resolution.

By using a standard form contract, both parties benefit from clarity, efficiency, consistency, and legal coverage. If you`re involved in a construction project where a nominated subcontractor is to be appointed, the FIDIC Nominated Subcontractor Agreement is well worth considering.