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Hi all I looking at some of our internal procedures and this is probably a moot point as their duties are similar, but the difference between a contractor and principal contractor, is the principal contractor is the one in charge if there is more than one contractor on a project.
We are not a construction company, but do engage an external company from time to time to do small jobs for us. They have teams of people who work for them on a job by job basis, but we only engage them and only pay them. Are they just a contractor or are they a principal contractor?
My first thought was they are a Principal contractor, but in L153 paragraph 147 it notes: -
Duties on contractors apply whether the workers under their control are employees, self-employed or agency workers.
So, if this company utilises a self-employed plumber for instance they are still just contractors, but if they bring in another registered company then they are principle contractors.
Is that correct?
Thanks for any help Chris
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Rank: Forum user
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Hi Chris, you are correct re Principal Contractor being in charge if there is more than 1 Contractor on a project. If the contractor you engage is subbing any elements out , they are a PC (presuming the works they are undertaking is construction).
I would consider them a PC if they engage either a self employed plumber , or a limited company with a team of plumbers. I would treat them the same. para 147 is a catch-all statement.
To be honest the duties between PC and C Don't differ that much. Obviously there is more focus on communication with the PC , and the requirement for providing info for th H&S file. They still need to do a construction Phase plan, ensure secure site, etc etc
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 1 user thanked ke5283 for this useful post.
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Originally Posted by: chris42  My first thought was they are a Principal contractor, but in L153 paragraph 147 it notes: -
Duties on contractors apply whether the workers under their control are employees, self-employed or agency workers.
So, if this company utilises a self-employed plumber for instance they are still just contractors, but if they bring in another registered company then they are principle contractors.
That's a subtle one. On balance, I think L153 is wrong (or at least, is insufficiently caveated and can therefore be interpreted more broadly than the authors intended). I think L153 is not intending to say that a self-employed person is not a contractor, I think it's intending to say that a contractor can't get out of their duties by having eth workers be self-employed, but I agree L153 doesn't say that. The reason I'd make your contractor be a PC is by reference back to the regs 'Interpretation', where it has contractor as "any person ... who, in the course or furtherance of a business, carries out, manages or controls construction work". I'd say that a self-employed plumber is carrying out construction work in the furtherance of a business, so that plumber is a contractor, so there is more than one contractor, so you have to have a PC. It's the fact that the self-employed plumber carries on as a business (even if actually only an individual) that makes the plumber a contractor, in my view.
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 1 user thanked achrn for this useful post.
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A self employed person is a contractor in their own right. Or are they self employed for tax purposes only, they are an employee. An employer will tell you they do not employ for tax purposes only due to HRMC requirements. So they are a company in thier own right.
L153 116 PC responsabilty, L153 147 contractor responsabilty, is expaining what a contractor is
"Contractors include sub-contractors, any individual,sole trader, self-employed worker, or business that carries out, manages or controls construction work as part of their business"
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