Hi All, I am looking for a bit of clarity. My organisation has been awarded a multimillion pound contract that falls under CDM. Is there any issue with us appointing another to fulfil the obligation of Principal Contractor? The cash route is Client, my organisation (who will be working onsite) and then hopefully, the Principal. Many thanks in advance.

Possible. e.g. A Local Authority Project is tendered and won by a PPP bidder who proposes as part of that bid to use the services of another to fulfil the PC role. For me the issue is more about contractual transparency. The client (the one with the money) should be made well aware of these proposed arrangements at tender stage.

Just remember that it is you who is subletting the PC role and he is thus you under the terms of the main contract. This means that the ultimate responsibility is yours as it is you that the client has appointed as PC. If you want to avoid the responsibilities then the client has to make the PC appointment at which point you become subject to his PC rules and requirements

Ron PPP was and is always a tricky one because I see the initial PPP agreement as more of a financial instrument than a construction contract. Still after the Edinburgh schools debacle perhaps the PPP type arrangements could be doomed. Just how poor is the management line when brick ties appear not t have been installed during construction. Making management arrangements more complex is always a possible recipe for disaster

If the Client has appointed you as Principal Contractor then you cannot contract out of those duties. If you then delegate those duties, which is not prohibited to another contractor if they fail to fulfil those duties you will be held liable. If you are not deemed as a Client then you simply cannot appoint the Principal Contractor. It does raise the question of competence. If you were not capable of acting as a Principal Contractor the Client should not have appointed you. However your scenario is not that unusual and I am guessing that you can show competence as you are functioning as a consortium with a contractor. It is important that you ensure the right management structure and procedures are in place.