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Construction Law/Direct subcontractors appointment


Dear Femi,
Hope this text finds you well,

please I have a project form of contract is fidic red book 1999.

the client issued a letter of award to the contractor (as its fast track project) there was no enough time to prepare contract documents.

in that letter the owner mentioned that (cctv,IT,kitchen equipment,loose furniture and AV) will be directly appointed by him (the owner).

the question now based on fidic red book 1999 will the main contractor will be obliged to gain percentages for profit& overhead from the aforementioned appointed subcontractors?

does the owner have to disclose those contracts prices to the main contract so the latest will know how much he should claim?

taking in mind that the main contractor has to coordinate with those specialist subcontractors to finish the scope of work as per the contract.

thanks & Regards.

Dear Hadi,

Apologies for responding to your question late.

Thanks for the question.

Though you have provided skeletal information about the contract documentation on the project you have referred to. Firstly, may advice will be that, you need to study both the letter that was issued where the owner has indicated that certain works would be directly appointed by him. You need to know and interprete the intention from the language used. For example, does the wordings of the statement refers to "nomination" of the agency / subcontractor that would execute the concerned works or does it refer to awarding this concerned works as a separate contract which is not under the contract you have with the client. In any case, you need to check as well if there is anything   in contract that that describe how the procedure for the "appointment" or "nomination" works out.

Now, having said all of the above,  if there is nothing specifically stated in the contract that could clarify the above, I believe if there is a sum allowed for thesecond works under the contract you have. In such situation, the sum will therefore with the wordings of the offer for CCTV. ..etc, it means the intent of the client would be that,  he intend to nominate who will do the job and most nominations comes with negotiation. ...I.e anytime a client is nominating, he also negotiates but where a client is requesting the contractor to either take on the job or finds an agency to do the job on his behalf, the client usually retain the rights to negotiate. Additionally, if the contract sum contained in the letter of award included the sums provided for these works that the owner intend to appoint directly for its execution, it means the Contractor definitely would be entitled Profits and general attendance and possibly special attendance. This is in line with the provision of clause 5 of Fidic conditions.

Hope this clears your doubt?

Thanks and regards.

Construction Law

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Femi Alofe


I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts


Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

1. AACEI RP on Estimating, 2010

1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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