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NEC4 Contract Preparation · Module 1 · Lesson 2 of 4

Subcontractor or supplier

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Why it matters

The Contractor will hire a GBP 1,240,000 pump firm, so must Dana accept it first?

Dana, the , must know which firms reach her desk.

GBP 1,240,000a subcontract to design, supply and install the pumps
2 weeksfor Dana to accept or refuse a firm
Makers, installers, designers: which come to Dana?

Source: ECC 11.2(19), 26.2.

The rule

One yes makes a Subcontractor

Stop at the first yes.

  1. 1

    Builds or installs any works?

    If yes:
    If no, go on to question 2.
  2. 2

    Designs any of the works? Not a supplier designing its own goods.

    If yes:
    Subcontractor
    If no, go on to question 3.
  3. 3

    A needed service in the ? Not hire or time-paid people.

    If yes:
    Subcontractor
    If no, go on to the outcome.
  4. Not a Subcontractor

Source: ECC 11.2(9), 11.2(14), 11.2(19), 11.2(20).

The rule

The Contractor stays responsible

The Contractor still answers to Dana for all the work.

“responsible for Providing the Works as if it had not subcontracted” (26.1)

  1. The firmAccepted before appointment. Refused if it stops the Contractor Providing the Works.
    Clause 26.2
  2. The documentsSent too, minus , unless NEC changed only by .
    Clause 26.3

Source: ECC 26.1, 26.2, 26.3.

The rule

Submit each firm by name

Name the firm, the work and the form. Prices only under Options C to F (26.4).

What to writeProposed Subcontractor

To: [name], Project Manager

Date: [date]

We submit [firm] as a proposed Subcontractor for [the work] (26.2).

It will sign the NEC4 ECS, Option [letter], with only the Z clause changes (26.3).

Source: ECC 26.2, 26.3. ECC Options C to F, 26.4.

See it on the project

Four firms on Aldermere, and one is a Subcontractor

Decide each, then tap to check.

“a person or organisation who has a contract with the Contractor” (11.2(19))

Harrowgill, the designer, under a

Not a Subcontractor. Its contract is with Aldermere Water, not the Contractor (11.2(19)).

Quarrymoor, the borehole driller, under an

Not a Subcontractor. It worked for Aldermere Water in 2024, before any Contractor was appointed.

The planting firm, working on Site

Not a Subcontractor. Its order is with Aldermere Water, so it is one of the (11.2(12)).

Cobalt Pumps, installing pumps under an

A Subcontractor. It contracts with the Contractor for part of the works. Dana accepted it on 23 January 2026 (26.2).

Source: ECC 11.2(12), 11.2(19), 26.2.

Try it

Sort each firm the Contractor hires: Subcontractor or not

Ask the three questions of each firm. One yes is enough.

Firm 1 of 5

…

Source: ECC 11.2(9), 11.2(19).

Recap

Test each firm, then submit it before the appointment

Habits for both sides: the Contractor submits and the Project Manager checks.

On Monday at work

  • Ask the three questions of every firm the Contractor brings in.
  • Submit each by name before it is appointed (26.2).
  • Send its subcontract documents too if they go beyond the Z clauses.

In the Toolkit: NEC4 Contract Checklists (ECC and ECS) (Excel) Members

Next lesson: Services, supply and other forms

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Independent course material. It is not published or endorsed by NEC. Clause references are to the NEC4 Engineering and Construction Contract, June 2017 with amendments January 2023, unless another NEC4 contract is named. The project and the people are invented. Short quotes from NEC4 (© NEC 2017) and the FIDIC Red Book (© FIDIC 2017) are used for review and comment. Read the full clauses in your own copy of the contract.

Source: ECC 11.2(19), 26.1, 26.2, 26.3.

Go deeper (optional)

Borderline firms and the documents

Harder cases for later. Skip them if short of time.

The pump maker commissions its pumps on Site. Now a Subcontractor?

It may be. Commissioning on Site can be a service in the needed to Provide the Works. If in doubt, submit the maker for acceptance.

Clauses 11.2(19), 26.2

The Contractor hires a temporary works designer. Is it a Subcontractor?

Usually not. Temporary works are normally , items “the Scope does not require the Contractor to include in the works” (11.2(9)). The Project Manager can still instruct the design to be submitted (23.1).

Clauses 11.2(9), 23.1

When can Dana refuse the subcontract documents?

Two reasons: their use would stop the Contractor Providing the Works, or they lack a statement that the parties act in mutual trust and co-operation. Dana may also agree that no submission is needed.

Clause 26.3

Source: ECC 11.2(9), 11.2(19), 23.1, 26.2, 26.3.