FIDIC - Red Book - 1987 - CLAUSE 4 : Sub-Contracting
FIDIC BOOK - RED BOOK - 1987 - CLAUSE 4 - SUBCONTRACTING
FIDIC's "Red Book", the 4th Edition of the "Conditions of Contract for Works of Civil Engineering Construction" published in 1987. Employers, engineers, contractors and their respective advisors should all find something in this point work to help them to understand and make best use of these conditions of contract.
This clause prohibits the sub-contracting of the whole or any part of the Works
unless the contract expressly permits it or specifies the name of a subcontractor or the Engineer gives his consent. The Contractor does not require consent for
labour and the purchase of specified materials. Regardless of any consent, the
Contractor will be fully liable for the defaults of the subcontractor as if they were
the defaults of the Contractor himself.
The Employer may require and pay for the assignment to himself of any
guarantee or warranty or other continuing obligation undertaken by a
subcontractor to the Contractor which lasts beyond the Defects Liability Period.
Sub-clause 4.1 is largely taken from the 3rd Edition but items (b) and (c) are new.
Sub-clause 4.2 is derived from clause 59(6) of the 3rd Edition.
4.1:
This sub-clause is given considerable importance by the fact that clause
63.1(e) (Default of Contractor) makes contravention a ground for termination by
the Employer. In contrast with the 3rd Edition and ICE 5th, there is no
requirement in clause 63.1 that unauthorised sub-letting should be "to the
detriment of good workmanship or in defiance of Engineer's instructions to the
contrary" before the Employer may terminate. Thus, any technical breach of
clause 4.1 could be disastrous.
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