NSC

Who are the 3rd parties involve in building contract PAM2006?

Direct contract Direct contract
Appendix3-7
Consultant Employer
Articles of agreement Clause 29.0
Craftsman,
tradesman and
Contractor other contractors.

Domestic Nominated

Clause 17.3 Clause 6.8 Clause 27.0 Clause 28.0

Domestic manufacturer, Nominated Nominated
subcontractor supplier, subcontractor supplier
supplier’s
contractor
 27. 0 Nominated Sub Contractor
1. PC Sums and Provisional sums- NSC

2. Nomination of Sub- contractor

3. Objection to NSC

4. Action following objection of NSC

5. Payment by contractor to NSC

6. Failure of contractor to pay NSC

7. Final payment to NSC

8. Determination of the NSC employment

9. Contractors responsibility for NSC

10. Employer no privity contract withNSC

11.Re nomination sub contractor due to

determination by contractor

12.Re nomination of sub contractor due to

determination by NSC

13.Contractor to recover additional

expenses fromNSC

14.Contractors permitted to tenderfor PC

sum
 WHATIS SUB CONTRACTOR

•Asubcontractor is an individual or in many cases a business that signs

a contract to perform part or all of the obligations of another'scontract.

•Asubcontractor is hired by a main contractor to perform a specific task as

part of the overall project and is normally paid for services provided to the
project by the originating general contractor.

•While the most common concept of a subcontractor is in building works

and civil engineering
 WHYHIRE SUB CONTRACTOR

•The incentive to hire subcontractors is either to

reduce costs or to mitigate project risks.

•In this way the general contractor receives the

same or better service than the general contractor
could have provided by itself, at lower overall risk.
 Types of subcontractor
Domestic subcontractor
Asubcontractor who contracts with
the main contractor to supply or fix
any materials or goods or execute
work forming part of the main
contract.
Essentially this contractor is
employed by the maincontractor.
Nominated subcontractor
Certain contracts permit the architect
or superintending officer to reserve the
right of the final selection and approval
of subcontractors.
The main contractor is permitted to
make a profit from the use of
nominated subcontractors on site, but
must provide attendance (usually
provision of water, power, etc. to enable
the nominated subcontractor to do his
job