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Is a main contractor liable to the customer for the fraudulent actions of its sub-contractor in performing sub-contracted services to the customer?
Published on: 10 May 2019
Privity of Contract and liability
Although contractual rights and benefits generally are (subject to express contractual provisions to the contrary) assignable, contractual obligations or burdens are not. However, in certain circumstances, contractual obligations or burdens may be 'vicariously' performed by way of Sub-contracting. Sub-contracting is the delegation by one party of some or all of its obligations under a contract between it and a customer to a third party (the sub-contractor) for performance by the sub-contractor.
Where vicarious (ie sub-contracted) performance is permitted, there is no transfer of the contractor’s liability under the main contract to the sub-contractor. The contractor remains liable to the customer under the main contract for
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Jurisdiction(s):
United Kingdom
Key definition:
Main contractor definition
What does Main contractor mean?
On a project where some of the work is sub-contracted, the main contractor (sometimes referred to also the head contractor) is the party which enters into a contract with the employer and is ultimately responsible for carrying out the works. The main contractor then sub-contracts some or all of the works to its sub-contractors.
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