Subcontract Agreement Sample Uae

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More importantly, there is also significant information about the obligations of the subcontractor when the customer is not satisfied with the work, needs changes or wants changes. With regard to the subcontractor`s right to unpaid payment, it is important to take into account the precedent of the Court of Cassation. The Court of Cassation had previously held that if a main contractor had agreed that it would settle the payments due by the subcontractor after receipt of the corresponding payment by the employer, the receipt of that equivalent payment by the main contractor was a prerequisite for the subcontractor to be able to claim its payment. However, the subcontractor`s claim regarding its arrears of payment was due due to (i) the existence of the back-to-back clause in the subcontract agreement and (ii) the main contractor who did not receive the corresponding payment from the employer. This section shall contain all commitments made by the subcontractor and vice versa. Some of the typical inclusions you will find in a subcontracting form include one of the following conditions: The UAE Civil Transactions Code allows the main contractor to subcontract all or part of the work to a third party without the need to obtain the employer`s permission, unless otherwise provided in the contract. or if the execution of the works depends on the personal competence of the contractor. This is provided for in Article 890(1) of the Civil Transactions Act of the United Arab Emirates. However, in practice, employers tend to have some sort of control over the main contractor in the subcontracting of the works and in the choice of subcontractors. The degree of such control varies. The contract may limit the scope of subcontracting by prohibiting the subcontracting of all works. This provision is common in standard contractual forms, for example in clause 4.4 of the FIDIC Red Book 1999, it says: “The contractor may not award all the work to subcontractors”.

The contract may also require the prime contractor to have the prior agreement of the employer or engineer to engage a proposed subcontractor if that subcontractor is not designated by the employer. In this regard, in some cases, it may be advisable to ensure that the treaty contains a provision that “.