Subcontractor Agreement In Uae

The fundamental condition is therefore that the principal contractor remains responsible for all acts and omissions of a subcontractor vis-à-vis the employer and therefore assumes the responsibility of ensuring that subcontractors are properly selected, managed and controlled. With respect to the first prohibition, most standard major construction contracts prohibit the principal contractor from subcontracting all work and, in many cases, require the principal contractor to seek prior authorization from the employer or engineer when appointing the subcontractor. Thus, the red book FIDIC 1999 clearly sees in its pegraph 4.4 that the contractor cannot attribute all the works to DieKundvergabe. In order to reduce the severity of the pay-when paid clauses, the subcontractor may attempt to obtain a direct payment obligation from the employer during the negotiation of the contract. In practice, however, employers are rarely. In some cases, the subcontractor may argue that the employer`s non-payment is solely due to the fault of the principal contractor. For example, if the principal contractor does not deliver the benefit commitment in accordance with the main contract. In other circumstances, the subcontractor may argue that the principal contractor was violated because he did not act on his claim against the employer. In this context, it may be desirable for the subcontractor to attempt to agree on a contractual clause requiring the principal contractor to assert his rights against the employer where possible. Finally, the subcontractor may invoke Article 247 of the United Arab Emirates Civil Transactions Act to suspend the work if it is not paid for. However, this right must be carefully exercised, especially in the absence of a contractual right to suspend the performance of works against non-payment. A subcontractor must seek the assistance of a lawyer to ensure that the right of suspension under section 247 can be exercised in his particular case.

In determining whether the subcontractor can exercise the right of suspension, a number of factors should be considered, including good communication from the prime contractor, the success of the subcontractor`s key contract obligations and the certification of payments. Whether a guarantee of security is granted or not, the prime contractor remains responsible for the delivery of the subcontractor, in accordance with Article 890, paragraph 2, of the Civil Procedure Act. In many cases, the courts of the United Arab Emirates have pointed out: That the principal contractor remains contractually responsible for the actions or failings of the subcontractor, even if the subcontractor actually carried out the employer`s instructions during the project.3 In accordance with Article 890, paragraph 2, of the Civil Procedure Act, the principal contractor remains responsible for all the work vis-à-law to the employer. , even if the principal contractor may have entrusted the implementation of all or part of the civil contract law, even if the principal contractor may have entrusted the enforcement of all or part of the civil procedure law, while the principal contractor may have entrusted the execution of all or part of the civil contract law , whereas the principal contractor may have entrusted the provision of all or part of the Civil Procedure Act, while the principal contractor may have entrusted the provision of all or part of the Civil Procedures Act, although the principal contractor may have entrusted the provision of all or part of the Civil Procedure Act. , whereas the principal contractor may have entrusted the provision of all or part of the Civil Procedure Act, although the principal contractor may have entrusted the enforcement of all or part of the Civil Contracts Act, while the principal contractor may have entrusted the enforcement of all or part of the Civil Contracts Act , while the principal contractor has entrusted the execution of all or part of the civil procedure law. , including work on a subcontractor.