| CISR15600 | Action guide contents |
When a managing agent is acting for a principal or 'client' in
letting contracts that include construction operations they will
not generally be a contractor as defined within the Scheme. This is
because the contract for construction operations will more likely
be between the principal and the subcontractor. The managing
agent's role would be to see that the work is carried out in
accordance with the principal's contract with the subcontractor and
may include making payments to them.
Where the contract between the principal and the managing
agent includes the maintenance of the property and the agent enters
into a contract on their own behalf, even though this is done under
the terms of the service contract between the agent and the
principal, the agent will be acting as a contractor within the
Scheme.
Remember that payments made under a contract between the
managing agent and the subcontractor may be caught by the Scheme
where it is a mixed contract, for example, including elements of
security, cleaning, minor repairs and maintenance. When considering
such a case you should refer to the section dedicated to
'construction operations' at
CISR14000 onwards for more on mixed
contracts and operations caught by the scheme. Brief details on the
scope of construction operations is also covered in Appendices A
& B of booklet CIS340 - 'Construction Industry Scheme. Guide
for contractors and subcontractors'.
