You are a subcontractor to company Z, who in turn is the prime contract to compa
ID: 354178 • Letter: Y
Question
You are a subcontractor to company Z, who in turn is the prime contract to company Q. Before any design review or technical interchange meeting, company Z requires that they review all material to be presented both in-house and with company Q prior to the meeting. Why would a situation such as this occur? Is it beneficial?
Referring to problem above, during contract negotiations between company Q and company Z, you, as project manager for the subcontractor, are sitting in your office when the phone rings. It is company Q requesting information to support its negotiation position. Should you provide the information?
Explanation / Answer
Such a situation occurs in order to ensure that the material is as per the standard specifications and technical data sheets as per client's requirements, i.e. company Q. This situation is beneficial because through this, company Z ensures that the client's requirements are met and all the material is as per the prescribed standards. In order to avoid any rework and increase the cost later on, it is better to get everything reviewed thoroughly prior to presenting it to the client.
The information should not be provided at all because you are the subcontractor to company Z, i.e. your client is company Z and not company Q. So you should not provide any information to company Q as it is breach of contract between you and company Z.
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