Free Issue Materials
Free issue materials are construction materials or components supplied by a main contractor or client to a subcontractor at no charge, excluded from the subcontractor's contract price but incorporated into the finished works.
Free issue materials are materials, components, or equipment that a main contractor or client procures and supplies directly to a subcontractor for incorporation into the works. The cost of these items is not included in the subcontractor's quoted price - they receive them free of charge and are responsible for their proper use from the point of delivery.
The arrangement is common in construction and fit-out when the main contractor can procure certain materials more cost-effectively, or when the client has a direct supplier relationship and wants to manage that procurement line independently. Free issue materials are also used to ensure continuity of supply for specified items - particularly when materials are scarce or have long lead times.
How Free Issue Materials Work in Practice
The main contractor or client purchases the materials and delivers them to site. The subcontractor receives them, incorporates them into the works, and is responsible for handling and safekeeping from the point of delivery. Unused, damaged, or excess materials are typically reconciled at project end and either returned or written off against the account.
The key practical points for both parties:
- The subcontractor's contract price covers labour and any materials they procure directly. Free issue items are explicitly excluded.
- Risk for free issue materials generally transfers to the subcontractor on delivery at site. If materials are lost or damaged while in the subcontractor's custody, the cost may fall on them depending on the contract terms.
- Shortfalls in quantity or quality of free issue materials should be reported to the main contractor immediately. The subcontractor cannot be expected to complete the works if the supplied materials are insufficient or defective.
- At final account, all free issue materials should be reconciled: quantities delivered, quantities incorporated, and quantities returned or wasted.
Record deliveries at the point of receipt
When free issue materials arrive on site, the receiving party should record what was delivered, including quantities and condition. A signed delivery record protects both parties if quantities are disputed later in the project.
Zigaflow's Delivery Notes module supports the recording and sign-off of material receipts on site, creating a timestamped record that can be referenced at final account reconciliation.
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