FIDIC / Legal Reference: FIDIC Red Book Clause 4.4 / FIDIC Subcontract 2011
A contract between the main contractor and a subcontractor under which the subcontractor carries out part of the Works. The main contractor remains fully responsible to the employer for all work carried out by its subcontractors.
What it means in practice
Clause 4.4 requires the contractor to obtain the Engineer’s consent before subcontracting any part of the Works. The contractor must ensure that subcontracts contain back-to-back provisions mirroring the main contract obligations.
Back-to-back subcontracts include provisions for: notice requirements mirroring the Clause 20 regime, programme obligations aligned with the main contract programme, insurance requirements, and payment provisions. ‘Pay-when-paid’ clauses are enforceable in UAE subject to reasonableness.
Where disputes arise
Subcontract disputes frequently arise from: underpayment by the main contractor, disputed variations, programme acceleration pressure passed down, and insolvency of the main contractor leaving the subcontractor unpaid.
UAE Context
In UAE construction, subcontractor payment disputes are common — particularly where main contractors are under financial pressure and pass payment delays down the supply chain.
Related terms
e-Basel advises both main contractors and subcontractors on subcontract claims, payment disputes, and programme entitlement across UAE construction projects.
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