Back To Back Sales Agreement

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. There is no single stop solution for the various possible pitfalls associated with back-to-back contracts. Regardless of the approach taken to the development of back-to-back contracts, the decision should never be motivated by the intention to reduce a rigorously rigorous design process. Both the main contractors and the subcontractors will have a strong interest in the properly developed subcontracting. In addition, in a series of subcontractings, the principal contractor must ensure that its main contractual obligations are properly distributed among the various subcontractors and that they are not omitted without knowing it. Autonomous contracts contain all the terms of the original contract that are relevant to subcontracting.

Such a contract can eliminate cross-references, inaccuracies and inconsistencies that are tedious. However, drafting a stand-alone contract can be even more tedious than developing a return contract, as each party must review the agreements and decide what conditions will be included in the subcontracting and what conditions need to be changed. For many construction projects, the contractor enters into a contract with a contractor for all the work and the contractor then enters into subcontracts for part of the work. The subcontractor`s agreements often contain a back-to-back clause. The importance of a “back-to-back” clause is that the agreement between the principal contractor and the subcontractor depends on the agreement between the initial customer and the principal contractor and that, as a general rule, the original client is the only one to confirm the work and that the payment and payment of the principal contractor to the subcontractor depend on the receipt of the payment by the principal contractor. However, a principal contractor generally cannot complete the work alone – he can ask for assistance from several subcontractors. In this case, they want to make sure that there are back-to-back rules, so they are not directly responsible to the client for the work by a subcontractor.