ABSTRACT

A subcontract is a contract between a contractor and his subcontractor. Thus, essentially the relationship between the contractor and his subcontractor is no different from the relationship between the owner/employer and the contractor. The use of nominated subcontracts is extensive in modern forms evolved for building and engineering contracts. Generally the selection of the subcontractor rests with the contractor. He may have an agreement with him prior to tendering for the main work or he may enter into an agreement after securing the main contract. The main contractor has to submit his tender based on the offer of the subcontractor for a part of the work for which he is nominated. Usually there is no contractual relationship between the owner/employer and the subcontractor; in which case neither party has any right of action against the other.