FIDIC / Legal Reference: FIDIC Red Book Clause 5
A subcontractor selected by the employer and whose employment by the main contractor is required under the contract. Nominated Subcontractors differ from domestic subcontractors in that the employer has pre-selected the specialist supplier.
What it means in practice
Under FIDIC Clause 5, the Engineer may instruct the contractor to employ a specific Nominated Subcontractor. The main contractor may object if there are reasonable grounds — for example, if the NSC’s programme does not integrate with the main programme.
The main contractor’s liability for NSC default is limited under FIDIC — the contractor is not responsible for design work done by the NSC unless it has accepted responsibility for that design. However, the contractor remains responsible for coordinating the NSC’s work and the quality of the NSC’s workmanship as installed.
Where disputes arise
NSC disputes arise from: the NSC’s failure to perform to programme or quality standard, the main contractor’s claim that NSC delay entitles it to an EOT, and disputes over whether the main contractor could have objected to the nomination.
UAE Context
Nominated Subcontracting is common in UAE construction for specialist systems including façades, MEP, lifts, BMS, and specialist fit-out. Employer-specified specialist subcontractors with long lead-time packages frequently create programme interface disputes.
Related terms
Nominated subcontractor disputes — including programme impact and responsibility allocation — are handled by e-Basel as part of our construction claims advisory services.
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