Arvitha Singh

The market is entering a more complex phase as the country’s established public procurement programmes continue to bring utility-scale wind and solar projects to market. Private offtake projects are increasingly being developed outside of traditional procurement routes. As complexity rises, it is vital for projects to manage risks appropriately. It is important for risks to be identified early and for both developers and contractors to take practical steps to reduce the risk of claims and disputes.

These are defined as ‘nominated’ and ‘selected’ subcontractors agreements, and are separate, although interrelated, agreements from the PBA. The employer appoints the principal agent and together they appoint the contractor. The contractor, subject to consultation with the principal agent, is entitled to appoint further contractors – nominated subcontractors or selected subcontractors – to carry out portions of the works.

Termination provisions can cater to circumstances both foreseen and unforeseen, for instance, in some contracts, works can be terminated for by the employer for convenience if for instance funding is pulled from the project. For those looking to utilise it, it is important to understand how these provisions can be applied under the JBCC’s Principal Building Agreement (PBA).