Sub Consultant Agreements

Given the increasing complexity of many construction projects, it is becoming increasingly common for a consultant appointed for a project to appoint consultants to perform some or all of the work for which he or she has been mandated. The client`s advisors may be referred to as “senior advisors,” while the advisors they appoint are generally referred to as “sub-consultants.” This is similar to the relationship between customers, contractors and subcontractors. The use of a sub-consultant is acceptable as long as the sub-consultant is clearly identified in the submission. Subcontractor work is usually done in another institution or company and usually has a budget for salaries/utilities, supplies, etc. The promoter`s requirements/gtc must be conveyed to the subcontract by written agreements. Compliance must also be monitored. A consulting contract generally applies to a person who does not use the institutional or organizational facilities and acts as a direct agent. He/she usually calculates by the hour, by invoice, and is paid directly Usually, a senior advisor appoints a sub-advisor because some of the work he was hired for is outside of his expertise or because he does not have the resources to do the work himself. The Joint Committee on Engineering Contractual Documents recently published a revised version of its engineer-sub-consultant documents. These sub-agreements are used to enter into contracts between an engineering firm as a top-notch design professional and other professional companies or individuals such as geotechnicians, surveyors, mechanical and electrical engineers, and architects. The new documents reflect existing legislation, recent case law and current business practices.

Designers, contractors, owners and lawyers have all given their opinions on the agreements. Contractually require sub-consultants to purchase adequate insurance, including professional liability, general commercial liability, deductible, commercial car and employee compensation, depending on the scope and complexity of the project and the services of the sub-consultant. If the customer needs some specific coverage (for example. B, cyber liability), the same requirement must be transferred downstream to submarines. If the client opts for an atypical agreement, the Prime Minister and his lawyer must ensure that the sub-consultation agreement “meets” the requirements of the project and that its role is in line with everyone`s understanding. You will also find below some considerations for future agreements: The CONSULTANT undertakes to provide the PLA with the signed originals of the Sub-Consultant`s confirmation form(s) for approval prior to the provision of the Services by a SUB-CONSULTANT. The consultant is liable to the City for the acts and omissions of a sub-consultant and persons directly or indirectly employed by him, as well as for the acts and omissions of persons employed directly by the consultant. The Senior Advisor may wish to ensure that they include consecutive clauses in their own consulting contract and sub-consulting contract to avoid exposure. Negotiating this is not always easy and is best achieved when consulting and sub-consulting contracts are drafted and agreed at the same time. The sub-consulting contract should cover issues such as the transfer of copyright to the senior advisor and the timing of payments so that the principal consultant`s cash flows from his or her own payments are reasonable and can meet the requirements of the Housing Subsidies, Construction and Redevelopment Act, this would allow a sub-consultant to suspend performance for non-payment. Carefully evaluate performance throughout the project. Regularly review responsiveness, communication skills, technical expertise, teamwork, punctuality, quality of service, and other project delivery factors.

Analyzing the performance of a range of projects allows the Prime to determine the best suitability of a sub-consultant for future work. For the client, this hierarchical contractual structure allows him to maintain a single point of responsibility, even if he needs the services of a large number of specialized consultants. For the senior consultant, this can allow them to take on work that they couldn`t do completely on their own. Prepare a written communication plan with ground rules that define what information is communicated to whom, by whom and how often. Be sure to create a clear protocol when direct lines of communication are allowed between sub-consultants and/or between sub-consultants, owners and contractors. While the direct exchange of relevant information can be effective, it is crucial that the lead consultant remains informed of all communications with clients and contractors. Encourage subcontractors to document their design processes, especially for systems and material selections that impact quality, schedules, compliance, and costs. First-class design consultants often have a lot of control and influence over the project. Unfortunately, such liabilities increase the potential for significant risks. This applies in particular if errors or omissions by subcontractors harm the client or the project. In such circumstances, the Prime Minister will most likely be held accountable as if he himself had committed the negligent acts.

Consulting team members likely to be needed on most projects include: an architect, a cost consultant, a service engineer, and a structural engineer. However, there are a variety of other consultants that may be needed for certain projects (see Consulting Team for more information). When part of the project is completed by a person outside the university, it is carried out either by subcontracting, or in service fees (suppliers), or in consultation. Given the risks and responsibilities, it is surprising how often top-notch advisors retain sub-consultants without a thorough review of their skills and background. Many fail to even keep written contracts with their subcontractors or settle for only short letters of agreement and/or the sub-consultant`s proposal. But consider this: if problems arise and the Prime does not have a contract with the sub-advisor, or if the contract is inadequate or ambiguous, the Prime could end up paying for the entire client`s loss. Make sure your sub-advisors provide up-to-date insurance certificates. Continue to verify that they maintain coverage at least until the project`s limitation period expires. Remember that due to the nature of non-life insurance, the professional liability insurance in force at the time of the claim is responsible for processing the claim. Sub-consulting contracts are just as important as the main agreement with clients.

They must be consistent and coordinated with the main agreement. To avoid discrepancies, use standard form design and construction documents published by the American Institute of Architects (AIA) and the Engineers Joint Contract Documents Committee (EJCDC), which are carefully integrated, referenced, and coordinated with agreements used for similar projects. .