In response to industry demand, FIDIC is currently preparing a subcontract for work developed by the employer for subcontracting, which will be supported by the 1999 FIDIC books Red1 and Pink2. In November 2009, FIDIC published a test issue of the sub-contract for comments. The test edition is largely well worded, but some pass-down provisions could be linked to a revision in the final version to be published this year. The dispute resolution clauses in the trial number attempt to address the three issues mentioned above, but unfortunately they are somewhat absent and pose significant risks to both the principal contractor and the subcontractor. Here, too, it is hoped that these issues will be resolved in the final version. For a more detailed comment on the FIDIC test sub-contract, click here. While the back-to-back principle is relatively direct and in itself undisputed, in practice problems often arise because of the way different contracts are documented. Poorly developed contracts can be difficult to interpret and inevitably lead to tedious and costly quarrels. The term “back-to-back” refers to the replication of contractual conditions in the supply chain.
As a general rule, descriptions of back-to-back requirements focus on the relationship between employers, contractors and subcontractors, but they also apply to subcontractors, suppliers, consultants and subcontractors. There was no agreement between the contractor and the subcontractor at the end of June 2016, but the Court found that, in practice, the parties acted as if there was a return clause and that the original not only approved all payments, but acted directly in front of the subcontractor to authorize the work. The Court found that the payment to the subcontractor depended on the receipt of the payment by the ordermaster. The new 2020 edition of the RIBA Subconsultant Professional Services Contract has been updated to meet the revised RIBA`s work order. We also took the opportunity to review and revise some of the standard clauses, following feedback from contract users and construction lawyers, to make them clearer and more understandable.