subcontract


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subcontract

the contract between a party and a main contractor who himself is contracted to another, often called the employer, albeit the contract is not one of employment in the contemporary colloquial sense. Subcontracts are very commonly found in building contracts. The employer contracts with the main contractor, who himself contracts for work to be done, like windows or floors, by others who can do so better or cheaper. A subcontractor maybe nominated by the employer. There are effectively and legally only two contracts, the subcontractor not being contractually bound to the employer. However, it is not uncommon for the employer to seek some form of contractual comfort from the subcontractor if his involvement is critical to the project. Standard forms govern many of the relationships between the parties. In one case it was held that a subcontractor could be held liable to an employer in tort or delict where the relationship was proximate, indeed, very like contract, a decision that, although doubted to the point of extinction in England, has not been overruled and has been followed elsewhere in the Commonwealth.
Collins Dictionary of Law © W.J. Stewart, 2006
References in periodicals archive ?
First, they give the Government the right to audit certain subcontracts. Therefore, the FAR clause is a mandatory flow down clause.
With the background and skills necessary to persuade others, and with sufficient room to negotiate subcontract terms different from the original bid package, your negotiator can stand up for your company in negotiations and achieve a better subcontract agreement.
* CAS coverage automatically flows down to a subcontract.
In reviewing the language of the subcontract, the court explained that "[o]f significance is the incorporation of the standard AIA General Conditions," particularly Article 1.1.2, "into both the general contract and the subcontract." That language, the court found, created a "strong indication of an intent" on both the part of the general contractor and the sub "to maintain the separate owner-general contractor and general contractor-subcontractor relationships."
On February 13, 1991, GEC & K submitted a termination claim of $1.4 million of the fixed subcontract price of $3.4 million, and sought an additional $2.5 million in STE fabrication costs.
Last year's $25 million drop (from 2.9% to 2.7%) in SDB subcontract awards from the major corporate contractors clearly provides fuel for this concern.
"Providing interested small businesses with adequate and timely information about the plans, specifications, and requirements for performance of the prime contract to assist them in submitting a timely offer for the subcontract;"
"The (proposed) rule sends the message that whether small businesses received subcontract dollars is irrelevant, so long as those businesses have an opportunity to compete," WIPP said.
'We are pleased to inform our esteemed shareholders and investors that Petrofac-Samsung JV has awarded, on October 4, to Galfar a subcontract for execution of EPC buildings works of package 1 and 3 of the main contract of EPC package 2 - utilities and off-sites of the Duqm Refinery project', Galfar said in a disclosure to the Muscat Securities Market on Wednesday.
The Main Contractor entered into a subcontract agreement ("Subcontract Agreement") with a MEP subcontractor ("Subcontractor") with a total amount of AED 60 million.
The teaming agreement said CGI "will receive" a 45 percent workshare of the awarded total contract value, but the "commitment may not be exactly 45 percent each year." It required the parties to enter into "good faith negotiations" for a subcontract after prime contract award.