Commentary

138 Payment of sub-contractor

BUILDING AND ENGINEERING vol 5
| Commentary

138 Payment of sub-contractor

| Commentary

3: RELATIONSHIP BETWEEN EMPLOYER AND SUB-CONTRACTOR

138 Payment of sub-contractor

In the absence of the conditions required by the Contracts (Rights of Third Parties) Act 19991, it seems there is no privity of contract between the employer and a sub-contractor. This is the case even where the sub-contractor is nominated following direct negotiations with the employer or the contract administrator2. The inclusion in the main contract of a provisional sum to cover certain work or materials does not lead to the conclusion that the contractor is acting as agent for the employer in procuring that item3. Nor has the contract administrator,

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