Basic Principles in the Formation and Compilation of Sub-Contract Documentation
Glenn Duffy, Legal Director (North West Europe), Alstom Power, UK
Once major projects such as bridge construction, skyscraper development, air and sea port infrastructure projects, shipbuilding, offshore installation chemical plant or power station construction and installation were often undertaken by large companies who's expertise, skills and experience covered the whole range across design, manufacturing, construction mechanics, engineering and the like.
Nowadays things are very much different. Global economics and the opening up of world markets has dictated that only the most competitive and adaptable of organizations will prosper in the mid to long term. Part of the transition to competitiveness involves the process of systematic reductions in costs combined with increases in efficiency, productivity and quality. Companies have to focus more and more on those activities which they are best qualified to undertake on a competitive basis. Parts of businesses which cannot be continued competitively are either closed, sold or alternatively merged with enterprises more suitably geared up to managing and delivering such activities. As a consequence, the age of the large conglomerate or manufacturing enterprise who supplied the bulk of materials, products and services for major projects purely from within its own resources has all but passed.
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