Delivering a large and complex retail project can be a daunting prospect especially when it involves lots of different elements and therefore requires the management of multiple contractors, all of whom need to work together to bring the project to fruition.
Managing different external suppliers and keeping all of them to a schedule is a huge commitment and can be a drain on a retailer’s time and resources. Fortunately, there is a solution that delivers several benefits, including increasing the chance of success, while drastically reducing health and safety risks.
Appointing an external Principal Contractor to take on the full management and coordination of a retail project is becoming more and more popular, particularly as retailers’ internal resources are cut back and become stretched.
What is a Principal Contractor?
They are a third-party party supplier who has overall control over the construction phase of a project involving more than two contractors. They are formally appointed by the retailer to plan, manage, monitor and coordinate all other contractors. In turn, they are accountable for the entire project, which includes responsibility for health and safety and risk management.
The Construction (Design and Management) Regulations 2015 (CDM) state that where a project involves two or more contractors, a Principal Contractor must be appointed. The CDM Regulations also identify that if a Principal Contractor is not formally appointed, then the client takes on the responsibility by default. If the client decides that they are the Principal Contractor instead, they have to liaise with each sub-contractor, which in comparison would be counterproductive.
It therefore makes sense to employ the services of a company that specialises in project management and can take on the role of Principal Contractor, rather than the retailer take on this responsibility themselves. Here are several reasons why:
Frees Up Time and Resources
The role of Principal Contractor is demanding, and requires commitment to a range of responsibilities. By appointing a Principal Contractor to oversee their project, a retailer can free up a lot of their own time and resources which can be concentrated on other activities. By offloading responsibility to a third-party, it allows the retailer to be more productive in other areas and add value to their business in other ways.
Streamline Communication
A key advantage of appointing a Principal Contractor is that by dealing with a single organisation and fewer points of contact, project co-ordination will be improved. It will also result in less administration for the retailer, including agreeing to contracts and other financial matters, as the retailer would agree to a contract with the Principal Contractor. They would also only pay the Principal Contractor who, in turn, pays the other sub-contractors.
‘Appointing a Principal Contractor brings much-needed order to the site’.
Offset Health & Safety Risks
Managing health and safety is a crucial part of looking after any business. Fully embracing the CDM regulations can bring substantial commercial benefits to a retailer. A Principal Contractor will help you reap these benefits by providing key advice on compliance and health and safety risk management. And not just advice – arguably the most valuable benefit of hiring a Principal Contractor is to offset all of the health and safety risks and liabilities onto a professional, experienced company.
In addition to securing workers’ health and safety, a Principal Contractor is also responsible for several other aspects of a construction project that you may not be aware of. They are also tasked with making sure that suitable site inductions are provided to ensure the safety of workers, and they take reasonable steps to prevent unauthorised access to the site. Finally, they ensure that everyone they appoint has the skills, knowledge, experience and, where relevant, the organisational capability to carry out their work safely and without risk to health. You can sleep easy knowing that your project is being completed by professionals, and that all risks are effectively managed.
Picking the Right Principal Contractor
As mentioned earlier, if your project requires the services of at least two contractors, then a Principal Contractor must be appointed. It is therefore important to the success of your project that you choose a company who understands retail spaces and can deliver it on time and to the set budget. It pays to do your research, because whoever you choose will be working with you for months - maybe years - so you will want to know that your project is in safe hands.
RMS is one of the UK and Ireland’s leading retail support companies. We provide Principal Contractor services to help retailers reduce risk and deliver successful projects.
