Trade contractor
On construction management contracts, a construction manager is appointed on a consultancy and management basis to provide advice to the client during the pre-construction stages and then to manage the construction of the works. The works are divided into packages which are contracted to separate contractors. These contractors are referred to as trade contractors rather than sub-contractors (as they are contracted directly by the client, rather than being sub-contracted to the construction manager). The separate appointment of trade contractors should reduce the cost of contracts, as the management element is being provided by the construction manager. It also allows the advancement of some works (such as groundworks or piling) which might begin even before design of the above-ground works is complete.
Characteristics of trade contracts include:
- Trade contractors may be appointed through a single-stage procurement process, or through a two-stage process with a pre-construction services agreement for the first stage.
- Each trade contract must have its own separate practical completion certification and so they may have different defects liability periods. Certification cannot be dependent on completion of works outside of the scope of the contract. As trade contracts may be completed at different times, the construction manager must ensure that measures are in place to protect completed work from ongoing activities.
- Trade contracts (such as the Joint Contracts Tribunal (JCT) CM/TC 2011) do not include provisions for liquidated damages, instead the trade contractor indemnifies the client's direct loss and/or expense for lateness.
- Trade contracts may allow for retention, or may include a requirement for a retention bond.
- Trade contracts should include requirements to adopt collaborative practices.
- As there is no main contractor, trade contractors should provide master programmes for their works.
- Trade contractors should be required to provide regular information in relation to key performance indicators.
- Where they carry out design, trade contractors may be required to provide as-built drawings.
Notes
- On management contracts, contractors are known as 'works contractors'.
- For a detailed description of the sequence of tasks necessary on a construction management contract, see the work plan: construction management: outline work plan.
NB A trades contractor (with an 's') is a more general term which simply refers to a contractor who undertakes a particular class of construction work, such electrical installation. See Trades contractor for more information.
[edit] Related articles on Designing Buildings
- Back-to-back provisions in construction contacts.
- Collaborative practices.
- Collateral warranties.
- Construction manager.
- Construction contract.
- Contracting.
- Contractor.
- Contractors master programme.
- Main contractor.
- Management contract.
- Operative.
- Procurement route.
- Sub-agent.
- Sub-contractor.
- Trade body.
- Types of contractor.
- Works contractor.
Featured articles and news
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems as first project of the newly formed Labout government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Building Engineering Business Survey Q1 2025
Survey shows growth remains flat as skill shortages and volatile pricing persist.
Construction contract awards remain buoyant
Infrastructure up but residential struggles.
Home builders call for suspension of Building Safety Levy
HBF with over 100 home builders write to the Chancellor.
CIOB Apprentice of the Year 2024/2025
CIOB names James Monk a quantity surveyor from Cambridge as the winner.
Warm Homes Plan and existing energy bill support policies
Breaking down what existing policies are and what they do.
Treasury responds to sector submission on Warm Homes
Trade associations call on Government to make good on manifesto pledge for the upgrading of 5 million homes.
A tour through Robotic Installation Systems for Elevators, Innovation Labs, MetaCore and PORT tech.
A dynamic brand built for impact stitched into BSRIA’s building fabric.
BS 9991:2024 and the recently published CLC advisory note
Fire safety in the design, management and use of residential buildings. Code of practice.
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.