Nominated Selected Subcontract Agreement

25.9.2023

A nominated selected subcontract agreement (NSSA) is a contract commonly used in the construction industry. As the name suggests, an NSSA is an agreement between the contractor and a subcontractor who has been nominated by the client. This means that the client has already selected the subcontractor and the contractor is required to use them… Zobrazit článek

A nominated selected subcontract agreement (NSSA) is a contract commonly used in the construction industry. As the name suggests, an NSSA is an agreement between the contractor and a subcontractor who has been nominated by the client. This means that the client has already selected the subcontractor and the contractor is required to use them for a specific part of the project.

NSSAs are often used when the client wants to ensure that a specific subcontractor is used for a particular part of the project. This might be because the subcontractor has a specific skill set or expertise in that area, or because they have worked with the client before and have a good working relationship.

There are several key features of an NSSA that are worth noting. Firstly, the subcontractor is nominated by the client rather than the contractor. This means that the contractor does not have the freedom to choose their own subcontractors for that part of the project.

Secondly, the scope of work that the subcontractor is responsible for will be clearly defined in the agreement. This will ensure that both the contractor and subcontractor understand what is expected of them.

Thirdly, the NSSA will include details of the payment terms for the subcontractor. This might include details of how and when they will be paid, as well as any specific payment milestones that need to be met.

One potential drawback of an NSSA is that it can limit the contractor’s ability to negotiate on price with the subcontractor. Because the subcontractor has already been selected by the client, the contractor may not have as much bargaining power to negotiate on price.

Overall, an NSSA can be a useful tool for clients who want to ensure that a specific subcontractor is used for a particular part of the project. However, it is important for both the contractor and subcontractor to fully understand the terms of the agreement before signing it. This will ensure that there are no surprises later on in the project.