The Confederation of Construction Specialists (CCS) is unhappy with
Multiplex's amendments to the DOM/2 subcontract form.
The CCS has given Multiplex's form (dated November 2003) for use
with JCT '98 with Contractors Design a score of 57% compliance with
the Construction Act.
The CCS marked the contractor down for its payment period
provisions: the backstop for payment for the first and interim
payments is 35 days after the date they became due.
"This means that in each case the subcontractor provides an extra
18 days of credit to the contractor. To overcome this, the
subcontractor needs to ensure that a schedule for payments is
negotiated," the CCS said.
The specialists' body also noted that the subcontractor is
penalised for failing to provide any required bonds, warranties
and/or guarantees on time in the form of withholding further
payment until such documents are provided.
Furthermore, the CCS is concerned that changes to Clauses 4 and 11
"impose new and modified risks, liabilities, obligations and
entitlements that enable the main contractor to treat the
subcontractor as another main contractor whenever risk is being
re-allocated and then treat the subcontractor as a lower tier
subcontractor whenever rights and entitlements are being handed
down and out".
A Multiplex spokesman said: "Multiplex continually strives for
constructive relationships with a wide range of subcontractors all
over the world."