ESTIMATING QSB60504Topic: Sub-Contracting Work Ngah Yea Zhe 0323204 Lee Ren Jet 0319058 Tan Jia Yi 0319476 Tan Kiah Chun 0324414 Yeo Doreen 0316224

Sub-contractor

Nominated Sub-contractor

Domestic Sub-contractor

Nominated Sub-contractor (NSC)

Domestic Sub-contractor (DSC)

Selected by client or consultants

Selected by main contractor

Client will have usually negotiated the terms and price

Without reference to the client with regard terms and price

Even the sub-contractor appoints by client, the responsibility remains with the contractor

Contract is simple between main-contractor and DSC

The main-contractor add a fixed percentage over the prime cost sum for profit and attendance

The main-contractor add a certain percentage over the sub-con quotation

Poor communication between contractor and sub-contractor

Good communication between contractor and sub-contractor

Examples: Interior design, Landscaping, M&E, Aluminium works, Lift

Examples: Concrete work, Finishes, Roofing, Reinforcement

Interior design works-Different type of brands have different cost-NSC have better price/ bargain -able to shortlist brand & recommend to client

MAIN CON

Always try to get cheapest price

NOMINATED SUB CONTRACTORSQuality and

price benefits

Mechanical & Electrical-Prioritised quality of material.-Communicate with clients, providing them recommendation and advice.-Employer able to control over the choice.-Nominating in advance allows the client to secure a favourable price.

Brickwork• Brickwork is very common

and general for works carried out by DSC

• Why not nsc? NSC usually does all the specialized works and they lack of onsite supervision and control

The Advantages and Disadvantages of Nominated Sub-Contractor (NSC)

Advantages • The right to choose the specialist subcontractor. This provides a

greater certainty that the specialist work will be carried out by a competent Contractor in the particular trade.

• The ability to obtain certain warranties directly from the Nominated Subcontractor.

• Avoidance of the risk that the tendering subcontractor may increase its price before signing up.

• Improved efficiency and productivity

Disadvantages• The liability of the Principal if the Nominated Subcontractor

defaults or become insolvent • Sub-contractor may lack resources for the task, eg. Capital,

equipment, people and management skills• The loss of ability to further negotiate prices after setting up

contract• Lack of onsite supervision and control