A supplier is a distributor, merchant, manufacturer or other company that provides materials, components, parts or equipment for a project.
The key distinction for a quantity surveyor is between a supplier and a subcontractor. A supplier delivers goods but does not carry out work on site, whereas a subcontractor carries out work, usually on a supply and fix basis. This matters because contracts for the supply of materials only, with no installation, generally fall outside the payment provisions of the Housing Grants, Construction and Regeneration Act 1996, and pure suppliers are not usually within the Construction Industry Scheme. Supply terms are often based on the supplier’s own standard conditions, which may include:
- retention of title clauses, which keep ownership with the supplier until payment is made
- limits on liability and warranty periods
- lead times, delivery charges and minimum order quantities
Related terms: subcontractor, procurement, retention of title, purchase order.
