Principal Contractor Query

[Key]

If a limited company (who provides building design services/engineering services) acts as a project manager then are they obliged to register as a principal contractor?

Basically the company would employ the subcontractors on behalf of the client and take a fee for this. The company would received all the money in relation to the build and then pay the relevant people with it (bit like a solicitor does in house purchase). Would the company be classed as a principal contractor. Reading the leaflet IT63 then it would appear not "RCT does not apply to professionals" however who would be responsible for deducting 35%/ensuring C2s are in place? Or does the fact that its the limited company being the professional make a difference?

Any help appreciated.

 

[Past30Now]

Most of the larger building companies could be described as how you have described your company.

They don't tend to have many employees - they subcontract most of the work. They effectively project manage each site. They by definition are Principal Contractors.

I would guess that you would be judged as having a separate trade, i.e. construction project manager and consequently would be required to register as a principal contractor.

Past30