Jan 15, 2018
Contractor-Subcontractor in Construction Project
Garold D. Oberlender. 2000. SECOND EDITION. PROJECT MANAGEMENT FOR ENGINEERING AND CONSTRUCTION. McGraw -Hill Higher Education.
WORKING WITH MULTIPLE TEAMS
As a project progresses through design into construction, the work of the owner's,
designer's, and contractor's teams must merge into a collective effort. Although
each of these teams have their own objectives, the diverse expertise that each
possesses must converge into an overlapping environment
The work environment and culture of a construction project is unique compared to
most working conditions. A typical construction project consists of groups of people, normally from several organizations, that are hired and assigned to a project to build the facility. Due to the relatively short life of a construction project, these people may view the construction project as accomplishing short-term tasks. However, the project manager of the construction team must instill in the team that building long-term relationships is more important in career advancement than trying to accomplish short-term tasks
The number of construction teams for a project depends upon the number of contracts awarded by the owner. For each construction contractor, and subsequent tier of subcontractors, a construction team is formed to perform the work in accordance with the contract documents issued by the owner.
Number of Contracts One
As illustrated above, the number of contracts can vary from one to many, depending on the chosen method of project delivery. For D/B/B projects, the owner awards contracts to two parties: one to a designer, who may contract some of the design work to other design firms, and one to the construction contractor, who may contract to numerous subcontractors who perform special construction work. For D/B projects, the owner awards a contract to one party: the DIB firm, who may in turn subcontract to many contractors. For CM projects, the owner awards contracts to three parties: the construction manager, designer, and construction contractor. Under this scenario, there may be many subcontracts awarded under each of these three principal parties.
A contractor may be viewed as an agent or vendor. An agent represents the owner's
interest, works for a fee, and usually is selected based on qualifications. A vendor
delivers a specified product or service, works for a price, and generally is selected
based on price
THE CONSTRUCTION PROCESS
ROLES AND LEGAL RELATIONSHIPS -THE STATUTORY CONTEXT
RIBA, ARIAS, ACE, FCIArb, Barrister
Chartered Arbitrator, Adjudicator, Registered CEDR Mediator
September 2011. www.aeberli.co.uk
PART A: THE PROCUREMENT PROCESS
1. The nature and extent of construction activity
Construction activity extends from, at one extreme, the individual house for a private
client to, at the other, new hospitals or shopping developments. It encompasses
buildings, engineering works, such as sewers and bridges, and major infrastructure
projects, such as airports and trunk roads. Arguably, the defining characteristic of the
construction process is that it concerns the procuring of purpose built solutions to client
needs, not the purchase of “off the shelf” products.1
2. The persons involved
Those involved in the construction process include:
- The client, the employer;
- Design consultants – principally architects and engineers (civil, structural,
mechanical and electrical);
- Quantity surveyors;
- Contract administrators (employer’s representatives);
- CDM Co-ordinators (formerly planning supervisors) and principal contractors
(see the Construction (Design and Management) Regulations 2007 (“the CDM
- Contractors, sub-contractors and specialist contractors (“specialists”).
- Regulatory authorities – principally planning authorities (always a local authority)
and building control authorities (usually, but not necessarily a local authority).
- Specialist agencies, such as the Health and Safety Executive and the
There are, in addition, funders, purchasers and tenants, and users.
Vicarious performance (sub-contracting) does not generally relieve the original contracting party of its obligations. This is so even where the obligation is one of skill
and care and an apparently competent person is used/engaged for the design work in question, consider Moresk Cleaners Ltd v. Hicks  2 Lloyd’s Rep 338