In construction procurement and project delivery, two commonly used approaches—nominated subcontractors and the general contractor (GenCon) strategy—shape how responsibilities, risks, and control are distributed across a project. While both aim to deliver a successful build, they differ significantly in execution, coordination, and accountability.
Understanding Nominated Subcontractors
A nominated subcontractor is a specialist contractor selected or “nominated” by the project owner or consultant, but formally engaged under the main contractor. This means:
- The client chooses specific subcontractors (e.g., for elevators, façade systems, or MEP works).
- The main contractor is still contractually responsible for integrating and managing these subcontractors.
- The risk is partially shared, often leading to coordination challenges if roles are not clearly defined.
This approach is commonly used when the client wants control over critical or highly specialized components of the project.
Understanding the General Contractor (GenCon) Strategy
Under a general contractor strategy, the client hires a single main contractor who is fully responsible for:
- Selecting and hiring all subcontractors
- Managing coordination and sequencing of works
- Delivering the project within agreed cost and schedule
Here, the GenCon has full control and accountability, and the client deals with only one contractual entity.
Key Differences
1. Control of Subcontractors
- Nominated Subcontractors: Client has direct influence over selection
- GenCon Strategy: Contractor has full discretion
2. Risk Allocation
- Nominated: Risk is shared; potential disputes over responsibility
- GenCon: Risk is centralized with the general contractor
3. Coordination Complexity
- Nominated: Higher complexity due to mixed authority
- GenCon: Streamlined coordination under one leader
4. Flexibility and Expertise
- Nominated: Allows client to secure top-tier specialists
- GenCon: Relies on contractor’s network and judgment
Imagine building a house is like organizing a wedding:
- With nominated subcontractors, the couple (client) personally selects key vendors—like the photographer, caterer, and florist—but hires a wedding planner (main contractor) to manage the event. If the photographer clashes with the schedule, the planner is still expected to fix it—even though they didn’t choose them.
- With a GenCon strategy, the couple hires a full-service wedding planner who selects and manages all vendors. The couple simply communicates their vision, and the planner takes full responsibility for execution.
When to Use Each Approach
- Choose nominated subcontractors when:
- Specialized systems require trusted or pre-selected experts
- The client wants higher control over critical elements
- Choose GenCon strategy when:
- Simplicity and single-point accountability are priorities
- The project benefits from streamlined coordination
Nominated subcontractors offer client control and access to specialists, but introduce coordination and accountability challenges. In contrast, the GenCon strategy provides clarity, efficiency, and centralized responsibility, but limits the client’s direct influence over subcontractor selection.
Ultimately, the choice depends on the project’s complexity, the client’s priorities, and the level of control versus convenience they are willing to balance.