ECC Option A contract - Sub - Contractors

The Contractor wishes to appoint a Sub Contractor and seeks the Project Manager ā€™s acceptance for this appointment. The Project Manager writes to the Contractor stating that this would be an unwise choice as the proposed Sub Contractor has performed badly on previous contracts with other Contractor s.

What could the Project Manager do regarding the appointment of the Sub Contractor ?

The Contractor says that if the Project Manager objects to this appointment additional cost would be incurred which the Contractor would seek to recover as a compensation event.

How should the Project Manager respond?

The Project Manager is right to make the Contractor aware of its concerns. The reason for not accepting the proposed subcontractor, ie their appointment would not allow the Contractor to Provide the Works is a difficult circumstance to demonstrate if the PM does not have any hard evidence. I therefore suggest that the PM in accepting reiterates its concerns and stresses that the Contractor remains responsible.

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