Back to back contracts construction

Back-to-back contract arrangements are increasingly popular as principals require head contractors to assume the majority of the liability in delivering a project and, in turn, head contractors try to push down as much of that liability onto their subcontractors. Achieving a true flow-down or “back-to-back” arrangement would involve incorporating into the subcontract all of those provisions imposing rights or liabilities which are relevant to the subcontractor. The Subcontract is therefore drafted on a "back to back" basis with the Main Contract, with the Subcontractor obliged to perform "all the obligations and liabilities of the Contractor under the Main Contract" insofar as relevant to the Subcontract works - albeit with some modifications.

The back–to-back clause is rendered unenforceable where the construction contract is terminated, and the main contractor must settle any outstanding payments to the subcontractor. For further information please contact Ahmad Ghoneim (a.ghoneim@tamimi.com). Back-to-back contracts are frequently used in construction contracts. While they are here to stay, Tom Kapapa of Quantum Global Solutions asks if these contracts truly protect contractors and subcontractors. Qatar’s construction market is booming, dynamic and expanding at a very fast pace. Using standard form contracts that already include back-to-back provisions in main contracts and sub-contracts. Key aspects of construction contracts that might require back-to-back provisions include: Key dates, notification periods and other time-related procedures. Back-to-back contract provisions, where a main contractor tries to incorporate the terms and conditions of a main contract into a subcontract by reference, can cause problems - particularly over BACK-TO-BACK CONTRACTS LUIGI DI PAOLA Studio Legale Bonelli Erede Pappalardo, Milan, Italy PAOLO SPANU Techint SpA, Milan, Italy 1. Introduction In the construction industry, a particular form of contract, called “back-to-back”, is commonly used. Back-to-back agreements, by which a main contractor seeks to pass its obligations and liabilities towards the employer through to its subcontractor(s), are becoming an increasingly common feature

Using standard form contracts that already include back-to-back provisions in main contracts and sub-contracts. Key aspects of construction contracts that might require back-to-back provisions include: Key dates, notification periods and other time-related procedures.

CONSTRUCTION CONTRACT. THIS AGREEMENT is made and entered into this ____ day of________, 20XX, by and between the COUNTY OF MONTROSE,  26.2.1 Building and construction contracts in Singapore have been shaped by 26.5.7 Similarly, incorporation solely via back-to-back provisions will not suffice. 8 Jun 2015 One of the perennial problems for contractors in the construction sector are used up and down the contractual chain, meaning back-to-back  procurement laws, or forms of construction contract, of their own. Typically, the assuming a subcontract is “back-to-back" with a Red Book- based main contract  A construction contract is a mutual or legally binding agreement between two parties based on will keep the savings obtained from the cost under runs for themselves and there is no obligation for them to give them back to the owners.

major construction contracts for example found that: • risks were not bid price and if they contain a “back to back” requirement to similarly provide indemnities 

Accelerate your construction agreement process, reduce budget overruns, approve change orders, onboard subcontractors, save time & minimize risk with  Common construction contract terms/ procedures. 22 A construction contract is an agreement between an work done, that is held back by the employer to  It includes considerable flexibility and is appropriate as a back-to-back contract with a landscape construction contract. The 2017 edition replaces all previous 

The Subcontract is therefore drafted on a "back to back" basis with the Main Contract, with the Subcontractor obliged to perform "all the obligations and liabilities of the Contractor under the Main Contract" insofar as relevant to the Subcontract works - albeit with some modifications.

28 Jun 2018 Back charges are damages where the upper tier contractor seeks an off-set against the lower tier subcontractor's contract if the upper tier 

A back to back contract can refer to many different things, but it's most commonly used in construction, in which case it means the main project contractor 

Back-to-back agreements, by which a main contractor seeks to pass its obligations and liabilities towards the employer through to its subcontractor(s), are becoming an increasingly common feature The letter of award for the subcontract stated that it was to be a lump sum fixed price contract and back-to-back with the main contract. appointed at the outset of the construction contract The meaning of a back-to-back clause is that the agreement between the main contractor and the subcontractor is subject to the agreement between the original customer and the primary contractor and usually the original customer is the only one to confirm the work and the payment and payment

major construction contracts for example found that: • risks were not bid price and if they contain a “back to back” requirement to similarly provide indemnities  Our team has worked with clients across the country to negotiate and draft contracts on a range of construction and infrastructure projects. Our lawyers advise  1 Oct 2011 The Construction Act defines construction contracts. Scheme will continue to provide a fall-back position where a construction contract does  A back to back contract can refer to many different things, but it's most commonly used in construction, in which case it means the main project contractor requires their subcontractors to adhere to the original contract terms. An experienced building and construction lawyer should carefully draft and review back-to-back contracts. If you would like legal advice or need assistance with drafting a back-to-back contract, get in touch with LegalVision’s construction lawyers on 1300 544 755 or fill out the form on this page. In complex construction projects, there are numerous project participants with different capabilities: the contractual arrangements are complex, the contractual chains are long and extensive, and it is very common for sub-contracts and supply agreements to be back-to-back with main contract provisions. The back–to-back clause is rendered unenforceable where the construction contract is terminated, and the main contractor must settle any outstanding payments to the subcontractor. For further information please contact Ahmad Ghoneim (a.ghoneim@tamimi.com).