This tip looks at some issues with preferred subcontractors and nominated subcontractors, how they are presented in the Specification and how it can be best not to use them at all.
Subbies make up a big part of the work on a building or landscape project and often are regular subbies of the head contractor.
So, straight away tenderers or a selected builder might resist, simply because they are being put out of their regular work routine (ie not being in control of the subbies they want to use).
Preferred or nominated subbies need to be checked out by the builder, which is some effort. Maybe the builder has worked with these subbies before and experienced some trouble with them.
With nominated subbies, it is necessary to give the work scope and price that the nominated subbie has already given to you. If not, the nominated subbie might be tempted to over-price the work due to lack of competition.
The work scope that you give for the nominated subbie could cause some friction because the builder may have a different scope for that sort of subcontract, so they need to do some re-jigging of other subbie work scopes to fit it in with their work.
Overall, it is best to let the builder do their job without too much interference. Building is what they are good at and it can be taken by them as a sign of some disrespect to start telling them who their subcontract team will be.




