Nominated Sub-Contract (Clause 29) Speaker Mi Stephen Lam FHIKIS, MRICS, MPFMD, RPS(Q.S), RPS(PFM) FF Areas to be covered = Definitions / Terminology = Formation of Nominated Sub-Contractor and Nominated Supplier = Reasonable Objection by Contractor = Alter A. issued for Nombnation = Payment to Nominated Sub-Contractor and Nominated ‘SuppllerGey Sub-Contracting Dofinitons / Terminology 1 Subseting (Clause 182] | The Conracto sal be permite, unless probes by the Contacto sublet pars ofthe Werks, [Cause 10.2 3. The Corractr coud et subat woe ofthe Works. . Tho eso the agreement o ebet sre consistent hte ems ofthe Contact 4. Wan required by the Arie, the Contractor shal submit a sub- cortacing management an 1. The Contractor could not subetany part of te Works to eub- contractor that object bythe Archie 1 Tre Contactor shall rove any ofthe sub-conracos haineted bythe Archiect | Sub-Contracting Definitions / Terminology 2. Demet Sub-Contactor ‘The sub contactor employed by the Cortractor ta carryout par ot the ware ‘9. Diet Contactor / Specialist Contractor “Tha Contractor sal slow the Direct Contractor Specialist CContacterreasonabe cass tore Ste ana permit him fo cary Fis wore [Clause 90 4, Nominated Sub-Contractar ‘A sulb-cortacor tocar ot the work provided fe by the Pee ‘Ces Sum and the Coriracor shall entero s-corract wh tat subcontractor. (Cause 28.11]Nominated Sub-Contractors Formation ef Nominated Sub-Contractor 1. The AzchiectIeue an Instruction to nominate the NSC or NS where a Prime Cost Sum cluded n Contact Bis. [Clouse 2) 2. NSC or NS may aris a a eo ot 24 requtng a Veriton fer adtlonl or [etause 20-11Ka)) 13210 expen a Provsnal Sum; [Clause ©, Alvunder dau 2e.1ny 0° ©, An agrooment betwoen he Contr and he Alec behalf te Employer (Clause 29°1(1Ke) av Nominated Sub-Contractors Reasonable Objection by Contractor 4. The Contractor may make reasonable objection because 1. the eub-contecor or supplier has a por safety recor [elauee 20.25Ka)) there ate reasonable grounds for baling that he fanaa Sanaa, solvency, echnical competence ot relat not ‘acopitl: [Clause 23.20) «there are reasonabie grounds fr baling that he tener um ‘snot anctallywabe, (Cause 282) 6. the programme for caryng out he sub-conract works or delve of te materials and goods fs unreasonable. [Clause 20.2rhonNominated Sub-Contractors Timing for Lodging Reasonable Objection 1 Whore the Contractors nied ofthe toner it of ut Contactos during the tender pete, the obec should be ‘made tether wit his tender submission. [Clase 28.22} 2, Were te Correo noid of helene of 2d ‘onractrs, the objection shouldbe made within aye of bog ote of te nt [Clee 2.29) 3. Whore the Contactor who ten te ia nominated, the been shoul! Bo made witin 4 days afer nominalon. iciause 23219) Nominated Sub-Contractors ‘Action after Recaiving the Reasonable Objection 1. The Acheter recsiving the objection so asec bythe Conracer, he may athar 2. witha the nomiation oF wtharaw te name rom helt [Ciause 20.212VaNor ». wihsraw he nomination andl nominating another sub- ‘ruracor (Clause 28215) oF ©. witeraw the rmination and inc the Contacto cary aut ‘ho works by meal [Cause 23.26) oF 4, flues to wndraw the nomination snd ny the Contector aeonrgly. (Clause 2.2(6)Nominated Sub-Contractors ‘Action after Receiving tho Reasonable Objection 2. Where ne Artec, notwithstanding his acceptance ofthe ‘aly ofthe Contactors objector ether 2. nominating anathor sub-contract ®: fluse to wah hn nomination an natty te Contractor ‘econ, then the Contractor aha enter nto @eub-ontrac ith tat sub corrector [Cae 29218) Sub-Contracting ‘After A seve for Nomination 1. Sub-Contactor to comy wih the proven ofthe Main ‘Contraco that relat othe Sub-Gontart. [Clause 2 of NSC] 1. the SubContractr shat be deamed to have fllknowkedgo ofl provisions of te Man Contract excep! he Contactor’ ate ©. the Sub-Conactr stall bere, perform and coma wih al ‘rousions of the Main Convact whch be Contractor has to ‘bserve, perform and com wi oar ae ty lam fo the Sub Contact {he Sub-Conratar sal indemrity and save harmless the CConracter aalnt and rom ary beach, non-comptance by the ‘Sub-Coriretor or his agers, 4. The Sub-Conractor shal eimburee any fas andior expanse andlor damage incur byte Contractor,Nominated Sub-Contractors ‘Ater A.. issued for Nomination 2. The Employer may requ te NSC o NS to ee il a sub conte r suppl waranty agreement wth the Employer. {Clause 293) 8. The Contractor shal be response fr he works of a1 NSC {4 NS oer tan design werk. [Cinuse 28.8) 4 The Contractor may apply fr EOT under clause 25.(9K(n) andlo®adtional payment for dec ot andor exponen uncer ‘auso 27 (hb ely tthe ena thal te ely o ruption ‘wes abut othe grounds for objection alse by the [Centractr fo the raminatin. (Clause 29.217 iF Nominated Sub-Contractors ‘After A issued for Nomination §5. The Contactor hal etrint the sub-contract sing he Standard Conditions of NSC. [Clause 28.21) ©. tho Areniec natruct the Contractor to ante ito @sub- Contract with condone eiferent rom the Standard Condters ‘INSC, then the Aehiort shall asue A. requng 2 Variion Inrespect othe dferences ues he same ves mentions thetander documents of re Mat Cantal [Cause 2952) 7. NSC clans EOT under he sub-contract, the Contractor shall rake fi asessrnet and shal olan the Architect's consent Store granting the EOT to NSC. [Cavee 299] 18. Tho Architect shal isu Carcata of Substantial Completion {tNSC Ite NSC tebe completed ata speced dat, [Clause 23.041)Nominated Sub-Contractors ‘Aftar A. Issued for Nomination 1. I the NSC works ar tobe completed athe sar te of the Main Corral Work, ese NSC works are evbtaraly ‘completed en the cay sated n he Suet Comattion Conia. [Clause 28.53), 101 be NSC ais o complete by the specie date othe extended ea, re Contact shall oily Aree ane apy t® NSC. The Arita ln 28 day ofthe notation from tne Contraco 8 cect othe delay SINSC fhe conalders tne NSC nes fale to completa, [Clause 2a) <_< Sub-Contracting Payment Procedures to NSC or NS 4. The Sub-Conrace eal eubm tothe Contactor a satement of tho gras valuaton ofthe Sub-Convat workin wonrest each interim payment cotfeates. (Chase 933) of NSC} 2. The QS sha noty the NSC ane NS, the amount ofthe nterin ayant ofthe NSC and NS Included lo each of he nim Cotesia, (Clause 22.7(1), ‘3. The Cantacter ha pay each NSC and NS the sunt duo tothe ‘a he Contactor receWng payment from the Employer. (Cause 28:72) 4, Tha Contactor shal keep proper payments NSC and NS and s pectin upon requ [Clause 29.703),a Sub-Contracting Payment Procedures to NSC or NS ‘5. ifrequtted bythe Arche, he Corrector shal wovde the that haha pai o each Sub. ConPaco a the ‘mount vein any previous ier cereal. [ieee 208(1) 6. The Contactor may wtinld any amount ae tothe Sub-Conractor ithe prondes suet aubstataton to ait the Archit ha 18. he has good cause fo" ding to and [inte 20.2) he hasinfrmes the NSC or NS of rit reasons for wihhaling Mat amount etre doing o. [Cause 2.62K0), Fi Default in Payment to NSC or NS - NSC’s Rights Late Payment 1 Me Contac a i py tm anor dot Su cantar 2 te Succ eal on crt payers et {Gaisos0s3 NSC] a ©, Determine he Sub-Cotrct under Clause 971(8X¢) of NSC. 4. Take neceosary acon agains! he Employer under Clause 35. rnc.ca Default in Payment to NSC or NS - NSC’s Rights Intorest for Lato Paymont 1. Theinorst ate shal be 1% below the judgment debt rate under the Rules of High Cou. [Case 3.°3 of NSC] 2. The nteret sal be calodatd frm 7 day ter the atest date of payment aught fo bp unt Ue dale of actual payment received [aves 9819 of NSC} * Default in Payment to NSC or NS - NSC’s Rights ‘Susponsion of Sub-Contract's Works 1. be Sub-Contetrintonds to suspend the Sub-Conrat Werks {ue to ron-payment win the agreed time rama, ha shall 2. give nace the Contactor, by special every, of he Cnsractrs tare to pay the amount end sang Nis inet to Suspend the Su>-Conrat Werk, (Clause 3.148) f NSC] »b. The Convactr fis te pay th amount the Sub-Corractor ihr 14 days of th recep ofthe Sub-Cortracta's notice. Teiesse 29-14) of NSC] «©. The Sub-Conracor may suspend the Sub-Con-at Werke he payment was nt yet recived str 1a cays of he note. [ehause 38.141) of NSC]HE Default in Payment to NSC or NS - Employer's Right Direc Payment io NSC or NS 1. the Contactar tals ary amount ue tte Sb Conracor ad alo sty te fremont under cause 230) 2 fhe Acie hl vi the Employer shal be ene to pay tat amount NSC. and st of tne same trom any sum det the Contraco. cortical for at amount rca nor he exerie of the Employer's power {or arect payment to NSC oF NE thal make the Employer Fate to pay NSC or NS direct. (Clause 20.84) 10