Construction Law and Dispute Resolution in the Firm Essay

Construction Law and Dispute Resolution in the Firm - Essay ExampleIn all given circumstances the fill institute contractor is expected to oblige the stipulations of another entitys contract. Based on the business conditions or other such stipulations the sub contractor may study many forms through which he fulfils the instilled obligations of the Employer or main Contractor. In most given circumstances the sub contractor is hired by a habitual contractor in order to execute specific project objectives. The general contractor generally pays out the sub contractor as per accepted conditions. A general or main contractor may also hire sub contractors in order to mitigate project risks or to reduce the costs. exploitation this approach the general or main contractor is able to provide better service through lowered costs along with lowered risk on their part. In general construction practice the sub contractors in question are often employed by the same general or main contractors allowing the sub contractor to develop essential expertise. However, there are differing legal stipulations when it comes to dealing with different forms of contractors. These can be better understood if the types of sub contractors are classified. This text will attempt to discern the change when a domestic subcontractor is changed into a nominated subcontractor as per the UAE Civil Code and English greenness law. 2. Sub Contractor Types Sub contractors can be classified in a number of ways but this text will consider sorting based on the JCT standard form of contracts1 because the FIDIC method of classifying sub contractors is rather limited. The classified types of sub contractors are2 Domestic subcontractor is any subcontractor who enters into contract with the main contractor in order to provide any goods or services that were required under the main contract. These subcontractors can be seen as employees of the main contractor. Nominated subcontractor is any subcontractor w ho has been sanction of by recommendation from the Engineer, Designer or Architect. The main contractor is nonetheless allowed to profit from these subcontracts even if approval stems from the original Employers end. Furthermore, the main contractor is accountable for providing the subcontractor attendance including water and power along with other required amenities. Typically the nominated subcontractor is a direct employee of the original Employer. Named subcontractors are effectively the same as domestic subcontractors and are beyond the scope of this discourse. What is the level of liability of the subcontractor? According to the FIDIC red books Clause 4.43, the subcontractor cannot be provided with the entire contract for cipher agreed between the Employer and the main Contractor. If this were done because it would become hard to differentiate between the legal status of the main contractor and the subcontractor. Furthermore, if this were the case then the contention behin d subcontracting to minimise risk by distributing it would be lost altogether. Thus it can be positively be identified that subcontracting involves transfer of risks as per the dominant view on the issue. However, as per Clause 4.4 of the FIDIC red book the Contractor shall be responsible for the acts or defaults of any Subcontractor4.