16 January 2023

What is the difference between a Bona-Fide and a Labour Only Sub-Consultant

This is a question we are frequently asked by our customers, and would provide the following guidance:

Who are Labour-only Sub-Consultants?
The defining characteristics of labour-only Sub-Consultants are as follows:

  • They work under your supervision and direction.
  • They would normally use your materials, kit, equipment and tools.
  • They must comply with your health and safety policies.
  • Contractors normally paid by the hour, day or week are more likely to be considered labour-only.
    Essentially, labour-only Sub-Consultants are additional employees that you hire to assist with a project.
    As they are employed for the duration of the project, you are required to pay them and classify them as employees therefore your firm must cover each labour-only sub-consultant under your employers and public liability insurance.

Who are Bona-fide Subconsultants?
The defining characteristics of bona-fide Sub-Consultants are as follows:

  • They work under their own supervision and direction.
  • They provide their own materials, kit, equipment and tools.
  • They are responsible for their own health and safety.
  • They may have additional employees.
  • They are responsible for their own guarantees and maintenance.
  • Bona fide sub-contractors tend to quote for a job and invoice it, either on completion or in stages.
    Essentially, bona-fide Sub-Consultants are hired to complete a specific job on a build project that your company is not capable of completing on its own (e.g. requires a different expertise). Because they are working independently of your Company, bona-fide Sub-Consultants should have their own liability insurance.

Note: The above comments apply equally to sub-contractors, i.e. those performing manual aspects of a project.

If you would like to discuss the issues raised in this article or if you have any questions about the Services we provide please contact:

CIEEM Insurance Services on 0161 233 4499
LI Insurance Services on 0161 233 4498
CABE Insurance Services on 0161 237 3199
CIAT Insurance Services on 0161 233 4497

For all other MFL clients who have questions about this article, please call 0161 236 2532.