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chris.adams  
#1 Posted : 25 November 2020 13:50:54(UTC)
Rank: New forum user
chris.adams

Hi all,

We are a small Contractor with the majoity of our work for one major Client.

We are the appointed Principal Contractor on all the jobs we work on for this Client.

The Client appoints and pays most of the other Sub-Contractors on our jobs where we are PC, and we have no involvement in paying them or appointing them.

We do not carry out any PQQs for these contractors as the Client does.

I fully understand we have responsibilities for H&S directly related to site in keeping everyone safe and compliant.

But how does it work when the Client appoints the other Contractors on the job? Surely the Client then has responsibilities as a Contractor also as they are subbing out the work to a Sub-Contractor with no involvement from the Principal Contractor?

Its confusing and has caused some debate in the office and I can't see how if we are not appointing or paying the Sub-Contractors, we would be responsible for essentially doing the job of the Client where they are appointing and paying the Contractors.

Thanks. Chris

peter gotch  
#2 Posted : 25 November 2020 15:22:38(UTC)
Rank: Super forum user
peter gotch

Hi Chris

Possibly a mix up in your office between criminal law (i.e. CDM and its statutory environment) and contract law.

CDM does not recognise the concept of a "Sub-Contractor". It defines a "Contractor" in such broad terms that it can include the self-employed tradesperson.

Here you have a contract between you and the Client to fulfil the role of Principal Contractor.

In turn the Client directly appoints a number of other Contractors, some of whom may also appoint Sub-Contractors.

It is not uncommon for a Client to "novate" a specific Contractor to do part of the work.

CDM sets out a legislative framework for your control of these other Contractors and also requires them to cooperate with you as PC.

If and when it all this set up shows fault lines, it might be that you want to look at what contractual control, if any, you have over these other Contractors. 

If the Client has done their homework, the Contracts will be worded to empower you to direct the Contractors as appropriate and to tell the Contractors to cooperate with you in your role as PC.

This way both those being considered and, possibly bidding, for the Contracts know what the rules are and can price the risks associated with working under a PC with whom they have no direct contractual relationship.

If this is not in place, then it is possible that when you as PC e.g. "stop the job" a Contractor might see your action as disproportionate and make a claim against the Contractor for being prevented (by you) from fulfilling their part of their contract with the Client. 

All down to the small print in the contracts but with the caveat that contracts cannot be used as an excuse not to comply with statutory duties.

achrn  
#3 Posted : 25 November 2020 15:50:32(UTC)
Rank: Super forum user
achrn

Originally Posted by: chris.adams Go to Quoted Post

Its confusing and has caused some debate in the office and I can't see how if we are not appointing or paying the Sub-Contractors, we would be responsible for essentially doing the job of the Client where they are appointing and paying the Contractors.

You would be responsible because the law says the PC is responsible.  You have some responsibility and liability even if you don't in fact have much (if any) control.

It's the same for designers - the Principal Designer has some responsibility and liability for all the design (coordinating, identifying eliminating and controlling foreseeable risks), even if it's by people the designer didn't select, didn't appoint, and has no control over.  The PD has to ensure all designers on the project comply with their duties - irrespective of having any control of them.

In fact, the scenario that troubles me most about CDM is being a Principal Designer and there being some design we know nothing about (say, someone lashes together some woefully inadequate temporary works which fails and casues injury or death).

These things are so because that's what the law says.  What the contract says is substantially irrelevant. 

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