27.2.1 Material sub-contracts

(a) The project agreement will specify what type of sub-contracts (including sub-sub-contracts) are to be regarded as 'material'. They will usually include sub-contracts above a specified threshold value, but may also include sub-contracts of a specified duration and sub-contracts for the provision of particularly important or sensitive contracted services (such as the supply of the tolling system in a tollroad project).

(b) The threshold value will depend on the nature and value of the project and whether the sub-contract is for construction or operation. However, it is effectively intended to represent a material part of the works or operational services (as appropriate).

(c) Material sub-contracts will be deemed to include the main construction and operations sub-contracts.