Jurisdiction(s):
United Kingdom

Key definition

Multi-contracting definition

What does Multi-contracting mean? Multi-contracting is a procurement approach in which the employer lets separate, direct contracts to multiple contractors for defined work packages on the same project, rather than appointing a single main contractor. It is a descriptive industry term, not a concept defined by statute or case law. Key legal features include: each contractor’s liability being limited to its own scope; no contractual privity between contractors; the employer retaining interface and coordination risk (often mitigated by appointing a construction manager or project manager); and the need for clear package scopes, interface matrices, programme integration, site rules, and insurance arrangements (including project-wide CAR...

Multi-contracting procurement for energy and complex projects: structure, risk allocation, interface management, advantages, disadvantages and funders’ perspectives

Published by a LexisNexis Construction expert

Practice notes

What is multi-contracting?

It is a procurement approach where multiple contractors are appointed separately for the distinct work packages making up a project—the employer contracts with them directly to deliver those individual packages. This procurement route is often adopted for energy schemes (power stations, wind farms, and the like) as an alternative to an EPC contracting model (see also Practice Note: EPC, split EPC and multi-party contract projects). The employer takes responsibility for co-ordinating all work packages and for handling the interfaces between them. A diagram sets out the contractual arrangement for a scheme let on a multi-contract basis (that arrangement may vary from scheme to scheme, although the diagram shows the contractual matrix). Contractors are usually engaged under target cost contracts. This type of contractual framework suits projects where the employer is best placed to assume certain project-specific risks, together with the risks arising from the interfaces between the different contractors. Under this route, the employer appoints each contractor to deliver its allocated scope...

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Web page updated on 21/05/2026

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