Back-To-Back Subcontract Agreement Template

The subcontractor may not subcontract, without the prior written consent of Prime, services that have been approved by a contract, in whole or in part. If Prime Contracts agrees to subcontract a portion of the work to be performed under a contract, the subcontractor must first obtain from each subcontractor a written agreement identical or comparable to the following sections of this agreement: interactions with customers, exclusivity, intellectual property rights, confidentiality, conflict of interest, subcontracting, warranties, exemption, limitation of liability, insurance and all other flow-down rules included. in the current task order. The client has an agreement or project contract with the main contractor who receives part of the subcontractor`s activities. The specificity of a back-to-back agreement is that the subcontractor respects the scope, planning and other conditions of the project contract between the client and the main contractor. The first approach is often seen by contractors as the simplest and therefore most cost-effective way to transfer liabilities. However, in the absence of special attention, such an approach can often lead to difficulties. Particular attention should be paid when drawing up compliance rules. For example, a general provision stating that all references contained in the main contract to “the employer” and the “main contractor” in the subcontract can be read as references to the “main contractor” or “subcontractor”, cannot be adapted to all obligations and lead to a significant duration of the contract either being inoperative, is subject to an interpretation that has never been contemplated.

In addition, in the case of long and detailed basic contractual specifications (often in the form of employer requirements), it can be a very complex and, indeed, controversial task to separate the obligations that are relevant for each subcontract. The main concern of subcontractors is that they accidentally take the risk of inappropriate questions given the scale and scale of their subcontracting. Back-to-back agreements where a prime contractor attempts to transfer its obligations and commitments to the employer to its subcontractors are increasingly common in construction projects. While they can be a practical way to transfer risks and obligations along the chain of custody, insufficient wording can lead to particularly complex and difficult to resolve disputes. Depending on the nature of the subcontracting, the complaints normally transmitted in the chain include those relating to defects, failures and delays in performance, as well as variations (both in terms of volume and evaluation). . . .