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About Peter M. Elliott
Expertise
First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only.

Experience
Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

 
   

You are here:  Experts > Industry > Construction Industry > Construction Law > sub contractor or material supplier

Construction Law - sub contractor or material supplier


Expert: Peter M. Elliott - 4/9/2004

Question
Our company blends an asphalt product and pumps it into the prime contractors plant. Are we a sub contractor or a material supplier.Also can you tell me were I can get more information on this subject

Answer
Hi John,

You do not state location, nor relevant law, nor the reason for your query, so the following comments are general.  Tha law is complicated and may depend on the tax laws in a particular region.  Generally the tax authorities have defined these words for taxation purposes.  further the difference between subcontractor and supplier may be defined in the main contractor's contract with his client, as there is extra protection for subcontractors in some forms of contract.

Generally, a subcontractor will have a contract with another (main) contractor to supply resources (labour plant or materials), and the subcontractor will retain daily control of the resources.  The controlling factors are the includion of labour and the retention of daily control.

As you supply materials only, then you are proabably a supplier, not a subcontractor, even if you have a contract with a (main) contractor for the supply of materials.  

You can find lots of definitions by using the keywords 'supplier' or 'subcontractor' and 'defition' in a good search engine such as google.  If you want case law, then you will have to define the applicable law.

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