Nominated Vs Independent Subcontractors

Summary

Nominated subcontractors are chosen by the client but contracted by the main contractor, while independent subcontractors are selected and managed by the main contractor. Independent contractors are not privy to the main contract, but the main contractor can be liable for their defaults under certain conditions. Quantum meruit allows for reasonable payment for services without a contract, referenced in the Contracts Act 1950, Sections 71 and 73. Section 73 addresses compensation for breach of contract. Relevant Malaysian case law includes Syarikat Ismail Ibrahim v Pilecon Engineering Bhd and Syarikat Binaan Zamrus Sdn Bhd v. Boustead Pelita Tinjar Sdn Bhd.

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any msian cases or authoruties to support this
To support the distinction between nominated and independent subcontractors in Malaysia, you can refer to the following:
*. Case Law:
- *Syarikat Ismail Ibrahim v Pilecon Engineering Bhd* [*] * MLJ *
- *Wah Seong (Malaya) Trading Co Sdn Bhd v Syarikat Pembenaan Raya Sdn Bhd* [*] * MLJ *
*. Authorities:
- *Construction Industry Development Board (CIDB) Malaysia*: Provides guidelines and regulations for subcontracting in construction.
Is there a specific aspect you need more details on?
Whether an independent contractor is privy to the main contract
An independent contractor is typically not privy to the main contract between the client and the main contractor. Their contract is separate and distinct, governed by the terms agreed upon between the independent contractor and the main contractor.
Do you need more details on the legal implications or other aspects of this arrangement?
so in this case the main contractor continues to be liable for the default of any of the independent contractors?
In Malaysia, the main contractor can be liable for the defaults of independent contractors under certain circumstances, such as:
- If the main contractor is responsible for supervising the independent contractor.
- If the independent contractor’s default affects the main contractor’s obligations under the main contract.
- If there is a specific clause in the main contract that holds the main contractor liable.
Do you need details on any specific clause or legal principle?
is it a yes or no
Yes, the main contractor can be liable for the defaults of independent contractors in Malaysia under specific circumstances.
Do you need examples of such clauses or more details on legal principles involved?
quantum meruit in msian statute
Quantum meruit in Malaysian statute is a concept where a person can claim reasonable payment for services provided when there is no agreed contract or payment amount. It's recognized under common law principles and can be found referenced in:
- Contracts Act *: Sections * and *.
- Case Law:
- *Syarikat Binaan Zamrus Sdn Bhd v. Boustead Pelita Tinjar Sdn Bhd* [*] * MLJ *
- *AJR Construction Sdn Bhd v. Tanjung Tuan Hotel Sdn Bhd* [*] * MLJ *
Do you need more details on how quantum meruit is applied in specific situations?
why s73
Section * of the Contracts Act * in Malaysia deals with the compensation for loss or damage caused by a breach of contract. It states that when a contract is broken, the party who suffers the breach is entitled to receive compensation for any loss or damage caused, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach.
Would you like more details on how this section is applied or any specific case references?