Subcontractor Agreement In Uae

It is customary for contractors to deny a right to an extension of time or additional costs due to delays if the contractor has not benefited from a reciprocal right under the main contract. This also applies if the subcontractor is not responsible. As a general rule, the only parts of a subcontractor are the principal contractor and the subcontractor and, as part of that agreement, there is no contractual capacity between the employer and the subcontractor. Therefore, any right to the subcontractor`s payment for the service provided as part of a subcontract is the sole responsibility of the subcontractor. When a subcontractor has this type of agreement, it is important to ensure that the terms agreed with the employer do not leave other legal barriers to the subcontractor (for example. B disputes before local courts, not arbitration). Outsourcing is common in the modern construction industry. It would be almost out of control for a contractor to carry out a construction project, especially if the project has a certain degree of complexity, without third parties with different skills and skills being responsible for carrying out parts of the work. On the other hand, from the proponent`s point of view, it seems more desirable to hire a senior contractor who remains responsible for all other subcontractors. However, it is not surprising that the main players in most construction projects are project proponents (client/employer), principal contractors and subcontractors.

This interactive channel naturally raises a number of contractual and legal issues. This document is intended to address these issues within the framework of the UAE Act. An important point for the subcontractor is that the success or failure of its claims would depend largely on the evidence. This means that letters, correspondences, payment requests that show compliance with the subcontractor`s obligation should be properly registered, submitted and maintained. However, in the United Arab Emirates, subcontractors may have the option of suspending the work in accordance with Article 247 of the United Arab Emirates Civil Code, since the other party has the right to suspend the corresponding obligation if one of the parties fails to comply with its obligation. As such, it can be said that the general practice in the UAE construction industry is to contract only parts of the work. These subcontracts are generally governed by the same legal principles for the most important work contracts.