Commentary

139 Defaults of sub-contractor

BUILDING AND ENGINEERING vol 5
| Commentary

139 Defaults of sub-contractor

| Commentary

139 Defaults of sub-contractor1

In the absence of privity of contract between them, a sub-contractor is not directly liable to the employer for failing to comply with the terms of the sub-contract. However, nominated sub-contractors and suppliers frequently enter into direct contractual agreements with the employer2, and the courts may infer a warranty by a sub-contractor or supplier out of the negotiations leading to nomination3.

A sub-contractor who negligently causes physical damage to the employer’s property (excluding the contract works) may be liable to the employer in the tort of negligence, although the allocation of

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