the nominated subcontractor is a subcontractor who stated in contracts or whom the engineer instruct the contractor to employ under clause 13.
the contractor has the right to object the nomination. the contractor shall notify the engineer of his objection providing supporting evidence. the objection shall be deemed reasonable if the objection arises from following
- The nominated subcontractor has insufficient competence, resources or finance strength.
- if the subcontract doesn't specify that the nominated subcontractor shall indemnify the contractor for any damage such as misuse of goods or any kind of negligence caused by a nominated subcontractor or his agents.
- if the subcontract doesn't specify for the subcontracted work that nominated subcontractor shall
- be liable and obligated for subcontracted work. therefore the contractor will be able to discharge his obligation and liabilities under the contract
- indemnify the contractor against any obligation or liabilities arising from contract and any failure to perform obligations and liabilities
payment for nominated subcontractor shall be done by the contractor. the contractor shall pay the nominated subcontractor the amount certified by the engineer. the engineer may ask the contractor to provide evidence of paying the nominated subcontractor for previous payment certificates.
if the contractor didn't pay the subcontractor then the employer may pay the nominated subcontractor directly for all pending certified amounts. then the contractor should repay the employer all the paid amounts.