Construction - managing a nominated supplier
Client-nominated. Contractor-managed. Every step documented.
Step by step
- Nomination InstructionJobs
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.
- Contract ReviewJobs
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.
- Supplier EngagementRFQs
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.
- Purchase OrderPurchase Orders
Place a purchase order to the nominated supplier referencing the contract, the agreed specification, and the confirmed delivery schedule.
- Delivery and ReceiptDelivery Notes
Track the delivery against the purchase order. On receipt, complete a delivery note and check goods against the specification for quantity and condition.
- Three-Way MatchPurchase Orders
Match the delivery note, purchase order, and supplier invoice before approving payment. Flag any discrepancies before the invoice is settled.
- Interim ApplicationInvoices
Include nominated supplier costs in the next interim application as a separate line item, with markup and attendance costs added per the contract terms.
What this workflow solves
- 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.
Frequently asked questions
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