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The main contractor acts as co-ordinator of all the individual sub-contractors, checks that they carry out their work properly and on time, and pays them for the work done. Nominated sub-contractors This type of sub-contractor is named (nominated) specifically in the contract by the client or architect to carry out certain work; the main contractor must use them. It is possible for the client to give a separate contract to a nominated sub-contractor. In this case, the nominated sub-contractor will still be paid, even if the main contractor defaults.

A contract is a legally binding agreement between a client and a contractor. Any failure to comply with the details of the contract by either party could result in a court action and heavy financial damages. This might happen if the contractor does not complete the work or uses sub-standard materials, or if the client does not pay. Contracts do not have to be made in writing. A verbal agreement, even one made on the telephone, can constitute a legal contract. However, most companies use written contracts which cover all aspects of the terms and conditions of the work to be carried out.

The diagram below shows the organisational flow chart of a typical small firm. Owner/Manager/ Technical Supervisor Secretarial & Financial support Approved Electrician Electrician MINILEC Apprentice 38 ©JTL481 Rev1 08/04 Large firms In the larger company, the tasks are allocated to different people. For example: estimators (who handle the initial enquiry and produce an estimate) and contracts engineers (who see that the work is done). This type of structure is known as a horizontal structure. The advantage is that individuals become specialised at a particular task and can work more efficiently.

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