RCT should be operated by businesses defined as principal contrators. A principal contractor may include property developers, building companies and all associated building trades, as well as individuals who are connected with these businesses.
All government bodies, local authorities, public utilities, boards and bodies established under statute are deemed to be principal contractors under current legislation. It also includes all gas, water, electric/hydraulic power (eg wind farms), dock, canal and railway activities.
From 31 March 2012, companies and individuals who carry out work on the installation, alteration or repair of telecommunications systems are now specifically included in the definition of a Principal.
A person or company is also deemed to be a principal contractor where they sub-contract all or part of a relevant contract under which they are a sub-contractor for RCT purposes.
Where a principal receives certain services, RCT should be operated on payments made to the service provider.
The range of services included in the scope of RCT is very broad and can bring some service providers into the realm of RCT unexpectedly, for example telecommunication hardware suppliers, hauliers and offshore exploration/exploitation support services.