6CN011 Contract Law and

Dispute Resolution (Qatar)

Lecture 4
Sub-Contracting &
Resource Management

Todays session
To cover a Contractors
responsibilities:
Sub-contracting under FIDIC
Management of Project Resources

Introduction
The doctrine of privity of contract:

A contract creates rights and obligations

as between only the parties to it.

This can be problematic e.g. if there

are defects to be rectified but the
Employer has transferred ownership
to a 3rd party after practical
completion

Subcontracting

Contractor may subcontract only some and

not all the works (4.4)

Questions
Identify the types of subcontractors
Who is a nominated subcontractor?

Nominated Subcontracting
(5.0)

Contractor may object the nomination of a

subcontractor - with reasons (5.2)
Contractor to pay subcontractor (5.3)
Engineer may request evidence of (previous)
payment(s) to subcontractors
Employer may pay subcontractors directly if the
Contractor has failed in this responsibility (5.4)

Case law: Chandler Bros

Ltd v Boswell

A sub-contract had terms similar to those of the

main contract
The main contract empowered the Engineer to
instruct the main contractor to remove a subcontractor; but this provision was not included in
the subcontract
A recital in the sub-contract required the
subcontractor to carry out the subcontract works
in accordance with the terms of the main contract
The contractor argued that he was then entitled
to remove a subcontractor from the works if so
instructed by the Engineer?
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Case law: Chandler Bros

Ltd v Boswell

The contractor argued that he was then

entitled to remove a subcontractor from the
works if so instructed by the Engineer?

Held by COA:
The contractors contention was declined; as
the sub-contract omitted this aspect

Case law: Davies v Collins

The appellants operated a dyeing and

cleansing service.
A US army officer entrusted his uniform to
the appellants for cleaning and minor
repairs
The appellants sublet this job
The subcontractor failed to return the
Uniform
Discuss the possible outcome of this case
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Case law: Davies v Collins

Discuss the possible outcome of this

case

Held by COA:
The subletting was a breach of contract

NB: Tasks of a personal service cannot

be outsourced by jobs that can be done
by others can be subcontracted
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Resource Management:
Staff and Labour

Contractor shall arrange to hire, pay,

maintain staff (6.1)
Remuneration and conditions of
engagement shall not be lower than those
prevailing (6.2)
Contractor shall not poach staff from the
Employers organisation (6.3)
Contractor to comply with labour laws (6.4)

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Resource Management:
Staff and Labour

Contractor to operate within normal

working hours and recognised/local
working days

Contractor to provide facilities for both

Contractors and Employers staff
None allowed to live on site either
temporarily or permanently
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Resource Management:
Staff and Labour

Contractor to ensure H&S on site including

an accident prevention officer
Contractor to maintain records of
accidents and report same to the Engineer

Contractor to manage, inspect and test

works using qualified personnel

Engineer may ask the Contractor to

replace the latter's employee(s)
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Resource Management:
Staff and Labour

Contractor to supply information to

the Engineer on the resources being
used monthly

Contractor to maintain order on/near

site

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Break
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Resource Management:
Plant, Materials,
Workmanship
Contractor
to:
Work effectively and carefully
Use proper equipment, facilities and nonhazardous materials
Provide (specified/manufacturers) samples to
the Engineer, prior to use
Provide Employers personnel access to the
works and places where materials are being
produced

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Re: The Engineers role

The Engineer also plays a role in
Plant, materials and workmanship
(Details in Lecture No.4)
7.2 Samples, 7.3 Inspection, 7.4 Testing, 7.5
Rejection, 7.6 Remedial Work

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Resource Management:

Plant, Materials,
Workmanship
Contractor
to enable Employers personnel
to inspect, test and measure (TIM)
Contractor to notify Employer when works
are ready for TIM
Contractor to provide resources to enhance
TIM
Contractor to agree time with Engineer for
TIM
Engineer to give a minimum of 24 hours
notice of intention to attend a test
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Resource Management:

Plant, Materials,
IfWorkmanship
test is delayed by the Engineer,

Contractor may be granted EoT and/or

costs
When tests have been passed; Engineer
shall issue or endorse certificates
Contractor to make good any rejected
work at own costs
Contractor to pay Employer for costs
incurred by the latter for retesting
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Resource Management:

Plant, Materials,
Contractor
to carry out any rework ordered
Workmanship
by the Engineer
Plants and materials for the work become
the property of the Employer when either:
1.
2.

delivered to site or
payment to contractor is due

Contractor shall pay (royalties, rents, etc)

for importing materials and disposing
surplus/unwanted/waste materials
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Lecture 4 summary

Contractor is mainly responsible for construction

Contractor may sub-contract some of the construction
Where sub-contracting is used, the Contractor remains
responsible to the Employer for delivering the Works
Contractor to manage their resources for effective and
efficient construction
The Engineer and his team shall test the works
Contractor to facilitate tests
Contractor to remedy Works that have not passed any
test

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Todays session
Has covered:
Sub-contracting under FIDIC
Management of Project Resources

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