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Jackson43281  
#1 Posted : 14 May 2021 16:55:50(UTC)
Rank: New forum user
Jackson43281

Hi,

I have a question for the fourm, something has come up in my line of work that doesn’t quite fit the normal CDM hierarchy I've used before.

I provide HSEQ advice to my clients and I also work as a Principal Contractor.

The situation is this;

One of my clients has one a tender for a CDM job, and wishes to employee me as the Principal Contractor. In the past their client has appointed me (as will be the case now) however this time around it will be my client that will pay me.

As far as I can see if the Client (having the work done) has appointed me in writing then the payment side is purely under contractual agreement.

Has anyone come across this situation before?

Thanks in advance

Mark

Acorns  
#2 Posted : 15 May 2021 07:41:55(UTC)
Rank: Super forum user
Acorns

I'm not full up on CDM, but for me, payment is a separate matter completely, after all, you could do it for free as much as charge.  

Roundtuit  
#3 Posted : 15 May 2021 09:43:05(UTC)
Rank: Super forum user
Roundtuit

I get the feeling that historical practice using the contract for services being considered the "appointment" is the matter causing confusion.

The regulations do not cover the financial interaction between parties involved in construction.

I would be looking that the appointment (duration etc..) is reflected in the contract for payment.

Roundtuit  
#4 Posted : 15 May 2021 09:43:05(UTC)
Rank: Super forum user
Roundtuit

I get the feeling that historical practice using the contract for services being considered the "appointment" is the matter causing confusion.

The regulations do not cover the financial interaction between parties involved in construction.

I would be looking that the appointment (duration etc..) is reflected in the contract for payment.

peter gotch  
#5 Posted : 15 May 2021 11:47:41(UTC)
Rank: Super forum user
peter gotch

Mark - yours is a variant on a Q I have been asked on numerous times since the outset of CDM over 25 years ago.

The simple answer is don't mix up criminal law [i.e. statutory duties under CDM] with contract law [including who pays whom for what services].

There will often be an overlap between criminal and contract - so, it makes sense to consider whether the contractual specifications are consistent with facilitating compliance with statutory duties by each of the CDM duty holders. 

For  you this means considering whether you have access to all the resources [of various kinds] you would need to discharge the statutory duties of the PC. 

Almost all my experience has been on substantial projects where it would be difficult to conceive of a situation where the role of PC could be discharged by a human rather than corporate "person", so the role has been routinely given to an organisation in both criminal and contract law. But, I suppose that a human person could discharge the role IFF the contract gives them access to the Contractor's resources. 

Prior to CDM 2015, the role of CDM Co-ordinator [and previously Planning Supervisor] was often done by health and safety consultants, sometimes sole traders. HSE concluded that this model hadn't worked and changed the rules in CDM 2015 to ensure that the Principal Designer was at the centre of decisions in the "pre construction phase" - which usually means the role being given to the Client [or one of the Clients], Lead Designer or Project Manager.

Your scenario sounds similar to what used to be commonplace as regards the CDMC or Planning Supervisor. Possibly you should consider whether it would be more sensible for the Contractor [or even the Client, depending on the nature of the project] to take on the role of PC with you acting as their CDM Advisor [and perhaps a wider role].

If the Contractor says, as a most basic example, we will provide X units of welfare accommodation and you think they need twice as much, will your opinion be the one that counts? If the Contract says YES, then maybe you are OK.

achrn  
#6 Posted : 17 May 2021 09:45:03(UTC)
Rank: Super forum user
achrn

I think teh scenario you are envisaging is that the ultimate client appoints you PC (in writing, etc) but a differnet party (who happens to also be employed by the ultimate client) will be paying you.

We have had this arrangement suggested to us.  The legal advice we received was (roughly) run away and don't look back.

As I understand it, it could work, legally, but it will be very very difficult to draft the contract in such a way that it gives you the protections you (ought to) want.  For example, if you fall out with the party that are paying you and they terminate that contract, you're at risk of retaining the liability of acting as PC, but now having no-one paying you. You probably do still need a contract with the ultimate client (to establish your scope etc), but that superficially has no consideration, which makes it difficult. 

It will be much easier if the party that appoints you to be PC pays you for being PC, and you have one contract regarding the PC appointment.

I think your insurer will possibly take a dim view of the arrangement too - they might decide you have no written contract in place for provision of the services, which would possibly mean you have unlimited liability, and our insurer won't cover a contract with unlimited liability.

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