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I have a query in relation to RCT and forestry. The client operates in one of 2 ways depending on the individual situation. 1 -The client effectively buys standing timber from the farmer/grower. The client organises felling and haulage and is billed directly for them. The client negotiates a sale price with the timber mill and gets paid directly. The client then pays the the agreed price over to the farmer after commissions etc. In this instance is the client a principal contractor in relation to the felling contractor? My thought here is that maybe they would not be deemed a principal as there is no contract for work between the farmer and my client (so not a principal) as the client believes they are buying the standing timber from the farmer and not contracted to clear fell? 2 The client is contracted only to organise the sale of the timber. The farmer organises and is billed directly for the felling operations and haulage etc. The timber mill pay the client who then pays the farmer minus commissions etc. I dont believe RCT could apply here as there is no principal subcontractor relationship in any of the transactions.

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Asked on 16 November 2015 12:22 pm