SUBCONTRACTING IN THE CONSTRUCTION FIELD

Abstract

This research attempts to discuss selected legal aspects of sub-contracting, and to set out recommendations for parties who are involved in the construction contracts and sub-contracts, regarding the mechanisms of drafting their contracts, specifically, clauses that are subject to cause more disputes, and the clauses related to key factors which affect the contractual relationships between the parties. The research discusses the selection process of sub-contractors, and how this process and selection criteria influence the liability, rights, and obligations of the parties related to both main contracts and sub-contracts. In addition, the research discusses the concept of back to back sub-contracts, and the effects of back to back payments on the construction main contract and sub-contract parties. The recommendations of this research have been concluded, after thoroughly analyzing and studying courts decisions for cases related to each key factor that influences the contractual relationship between parties in the construction industry. The main basis referred throughout this research were the UAE Civil Transaction Code and other UAE legislations, Common Law and UK acts and regulations, and other international laws and practices. In addition, specific consideration has been given to international standard construction contracts such as FIDIC construction contract form Redbook 2017, and FIDIC construction sub-contract form 2011, and other standard contracts such as JCT and NEC. The significance of this research arises from the importance of proper contracts drafting, as the interpretation of the clauses included in a contract, substantially influences the liabilities, obligations, cashflows of a contract parties, and plays a significant role in avoiding disputes that may arise from poor drafting.