Main contractor meaning

Use this Checklist when preparing a sub‑contract agreement for a main contractor, or prime contractor, that engages a sub‑contractor to fulfil particular obligations under the main or prime contract. It is appropriate when drafting a sub‑contract for a commercial transaction involving the supply of goods and services, or other generic commercial activities, but it is not intended for a construction sub‑contract, nor for sub‑contracting consultancy services. For an illustrative agreement suitable for a sub‑contract covering a commercial transaction for the supply of goods and services, or comparable generic commercial activities, see Precedent: Sub‑contract agreement. For a more detailed analysis of the legal and practical considerations when entering into a sub‑contract, or when granting permission to sub‑contract, see Practice Note: Subcontracting. Initial matters Verify that the parties named within the contract itself are correct, accurate throughout and complete...

This Checklist outlines a series of practical measures that a main contractor should weigh up if a sub-contractor it has appointed becomes insolvent during a construction project. It proceeds on the basis that the parties have a written sub-contract covering construction works that remain unfinished, and that the arrangement is not a PFI project. The precise response in any given case will inevitably turn on the contractual provisions between the parties and the stage the works have reached at the point of the sub-contractor’s insolvency, but this Checklist is intended to act as an initial framework for the contractor should such circumstances arise. For guidance on identifying warning signs of solvency issues and safeguarding the contractor’s position at the outset of a project, see Practice Note: Construction insolvency-how to spot problems and how to protect yourself-contractors. Where a sub-contractor has become insolvent, the contractor must act promptly to protect its financial position and to enable completion of the project with as little disruption and delay as possible, thereby avoiding exposure...

Checklist This Checklist summarises practical measures a sub-contractor should consider if the main contractor on a construction project becomes insolvent during the course of the works. It assumes the sub-contractor is engaged on written terms by a main contractor for a defined sub-contract package, and that the main contractor has been making payments directly (i.e. there is no project bank account, escrow account, or alternative payment mechanism). For advice on identifying early signs of solvency concerns and protecting the sub-contractor’s position from the outset, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—sub-contractors. Where the main contractor on a construction scheme has gone insolvent, the sub-contractor should respond promptly and evaluate every practical and legal step available to safeguard its position. The actions a sub-contractor should contemplate are outlined below...

K&J Townmore Construction Ltd v Damien Keogh [2023] IEHC 509 A High Court ruling in K&J Townmore Construction Ltd v Damien Keogh [2023] IEHC 509 is welcome news to many within Ireland’s construction industry. A party sought leave to pursue judicial review of an adjudicator’s decision under the Construction Contracts Act 2013, but the application was refused. That refusal ensures the Act will continue to operate as a practical and useful mechanism for resolving disputes in the construction industry in Ireland, preserving the intended effectiveness of adjudication... Townmore, Cobec’s main contractor, asked the High Court for permission to judicially review the appointment of the adjudicator, Mr Keogh (the Adjudicator). The Adjudicator considered that he had jurisdiction to determine a dispute between Townmore and Cobec under the Construction Contracts Act 2013. Despite Townmore’s assertion that the issue was not a ‘payment dispute’ within section 6(1) of the Act, Mr Keogh refused to resign. Townmore argued that it would be inequitable to wait until the adjudication had run its course...

In this issue: Adjudication Litigation Arbitration Building safety Procurement in Construction Construction industry news Daily and weekly news alerts New and updated content Construction trackers Adjudication Joint ventures on construction projects—who can adjudicate? (Darchem Engineering v Bouygues Travaux) The TCC declined to summarily enforce an adjudicator’s award in favour of a company that formed one half of an unincorporated joint venture. The JV, not the individual company, had been appointed as sub-contractor under a sub-contract for works at a nuclear facility. The court determined the company alone was not a party to that sub-contract, meaning the adjudicator lacked jurisdiction. The ruling underscores the need to assess carefully the legal ramifications of delivering projects through an unincorporated joint venture. See News Analysis: Joint ventures on construction projects—who can adjudicate? (Darchem Engineering v Bouygues Travaux). Litigation Defence strike out—still leaves a hill to climb in proving the claim in the absence of the defendant and...

VMA Services Limited v Project One London Limited [2025] EWHC 1815 (TCC) What are the practical implications of this case? The decision underscores that where an employer (or main contractor) does not issue a compliant Payment or Pay Less Notice, the contractor (or sub‑contractor) becomes entitled to the notified sum — namely the figure stated in the payee’s default payment notice — and the adjudicator may direct immediate payment of that amount, without need for a further adjudication. Paying the notified sum is a mandatory, immediate legal obligation of payment. A true valuation adjudication cannot be used by the employer (or main contractor) to challenge liability or quantum until the notified sum has first been paid in full. Accordingly, serving valid Payment or Pay Less Notices is essential to preserve the right to contest payment figures through the adjudication process and to avoid surrendering the opportunity. It also confirms an adjudicator’s jurisdiction to make a monetary award in favour of a responding party where, within the scope of...

This Practice Note is archived and no longer updated or maintained. It outlines the differences introduced in the NEC4 standard form construction contracts when set against the NEC3 versions. It also summarises the changes from NEC3 across the standard forms. The spotlight is on the NEC4 Engineering and Construction Contract (ECC), though many ECC revisions mirror those rolled out across the broader NEC suite. Many of the points made in relation to the ECC are indicative of suite-wide adjustments. The NEC characterises NEC4 as an ‘evolution not revolution’, building on NEC3. The bulk of NEC4’s revisions appear aimed at embedding sound practice and/or cutting reliance on Z clauses (ie bespoke amendments). For further details on NEC contracts in general, including their structure, see Practice Note: NEC contracts—introduction. Publication of NEC4 The NEC4 contracts were issued by the Institution of Civil Engineers on 22 June 2017...

This Practice Note outlines the criteria an employer may apply when deciding how to engage an individual. It examines the main categories of employment status—employee, worker, and the self-employed or independent contractor—and also addresses employee shareholders, casual staff and those on zero hours arrangements, agency workers, apprentices, interns and volunteers. Employers should identify at the outset which status is intended—employee, worker or self-employed—as each attracts distinct rights and protections. Further, particular considerations arise where the engagement is casual or ‘zero hours’, or involves agency workers, apprentices, interns or volunteers. Employment status also determines how the individual is treated for tax purposes (see Practice Note: Employment status—why it matters). Errors can result in employment tribunal proceedings and exposure to tax liabilities. Ultimately, regardless of the label used, courts and tribunals will prioritise the true substance of the working relationship over the wording of any contract. Employee, worker, self-employed/independent contractor Employee shareholders Casual and ‘zero hours’ workers Agency workers Apprentices Interns and volunteers ...

What is retention? Holding back a retention from interim payments is a common feature of commercial construction contracts, particularly those using standard forms. Retention describes the portion of each interim payment an employer withholds as security for the contractor’s future performance and as an incentive to ensure every obligation is fulfilled. A set percentage is deducted from each payment; this amount is referred to as the ‘retention’ (or ‘retentions’). This approach is often mirrored down the supply chain—for example, a main contractor may retain sums from a sub-contractor. The arrangement facilitates part-payment as the works advance, while postponing the balance until all contractual duties are completed. In addition to promoting completion of the works, the retained funds can be used to pay for correcting defects where the contractor is in default under the contract. How much retention is retained? Retention levels can be as high as around 10%. On larger projects, the figure is more commonly between 3–5% (although some public sector clients adopt a policy of...

Letter for sub-contractor to send to employer in the event of main contractor insolvency [ [ Sub-contractor’s headed notepaper ] OR [ Sub-contractor’s address ] ] [ contact name, job title and department ] [ name of employer company ] [ address ] Dear [ contact name ] [ name of project ]—[ name of main contractor ]—Insolvency We believe that [ name of main contractor ] [ has entered into administration OR is in liquidation OR has commenced a moratorium OR other ] ....

Key information Firm name [ Please insert the firm name here ] Role holder name [ Please insert the name below ] Reporting to [ Please insert the name of the line manager ] Employment type [ Full-time/Part-time/Contractor ] [ If this is a contractor position, specify the length of the contract ] Main location [ Insert the primary location for this role—where attendance is regularly required across multiple locations, eg in each regional office, make sure this is clearly set out ] Remote/hybrid/office-based?...

Firm name [ Add firm name ] Name of post holder [ Add name ] Reports to [ Senior partner or Board or Management committee ] Employment status (full-time/part-time/contractor) [ Add ] If a contractor, contract duration [ Add ] Main base [ Add the main base for this post—if the post holder must routinely spend time across multiple sites, e.g. in each regional office, ensure this is stated ] Working pattern (remote/hybrid/office) [ Add working model ] Start date in post [ Add date ] Length of probationary period [ Add ] Probation review end date [ Add date ] Role summary The Chief Executive serves as the most senior executive on the [ Board or Management committee ], accountable for robust governance, shaping strategy and vision for the firm, and carrying out the plan as agreed, ensuring effective delivery of the agreed strategy across the firm where required...