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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