3.5. Prime & Sub-contracts

Try these first

1. 1.

   Define a prime contract.

   Hint

   Think about the main relationships in contract management.

2. 2.

   What is the purpose of a sub-contract?

   Hint

   Consider why specialization is important in large projects.

3. 3.

   What is a prime contract?

   • A contract between a subcontractor and a supplier
   • The main contract between the owner and contractor
   • An employment contract

   Hint

   Think of the main relationship in a project.

4. 4.

   True or False: Sub-contractors are directly responsible to the project owner.

   • True
   • False

   Hint

   Consider the chain of accountability.

5. 5.

   A principal contractor faces significant delays caused by a subcontractor failing to meet deadlines. Discuss the implications this has on the prime contract and potential management strategies.

   Hint

   Consider the consequences of contract obligations.

6. 6.

   Analyze a scenario where two firms enter a joint venture to undertake a large project but later face conflicting commitments. How should they resolve their contractual obligations?

   Hint

   Think about conflict management strategies.