Construction - Managing a Nominated Supplier

Receive and log the nomination instruction in writing, noting the prime cost sum allowance, the specific goods or materials covered, and the supplier contact details provided.

Review the prime cost sum in the contract documents to confirm entitlement to markup and attendance costs, and the mechanism for recovering them in interim applications.

Contact the nominated supplier to confirm product specifications, pricing, lead times, and delivery requirements. Raise an RFQ if pricing has not been confirmed by the client.

Place a purchase order to the nominated supplier referencing the contract, the agreed specification, and the confirmed delivery schedule.

Track the delivery against the purchase order. On receipt, complete a delivery note and check goods against the specification for quantity and condition.

Match the delivery note, purchase order, and supplier invoice before approving payment. Flag any discrepancies before the invoice is settled.

Include nominated supplier costs in the next interim application as a separate line item, with markup and attendance costs added per the contract terms.

Nominated suppliers have been chosen by the client, not by you - if they underperform on delivery or quality, you carry the contractual risk with the client while having limited leverage with the supplier.

Tracking the prime cost sum allowance against actual nominated supplier costs is easy to lose sight of when running multiple contract packages simultaneously.

Recovering legitimate markup and attendance costs on nominated supply requires clear documentation at every stage - without it, the client or QS may dispute the entitlement during interim valuations.