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What does a back-to-back contract mean for a subcontractor?

It means your subcontract passes the main contract's terms down, so you owe your main contractor what it owes its client for your work.

Updated: . By Jack Butler-Kettle, Construction Claims Consultant.

The answer

It is usually done with a clause saying you are bound by the main contract so far as it relates to your work. Some add a promise not to put your main contractor in breach of it. In practice the two contracts rarely match exactly, because your main contractor keeps time for itself. So a 14 day notice period in the main contract can become 7 days in your subcontract. Yet its liability to the client for delay can come down to you in full. Whether general words like these bring in every term of the main contract, or only some, depends on the wording. That is a question for your solicitor. Commercially, ask for the main contract before you sign and read the parts that reach your work. Then set the periods and liabilities it passes down against the ones your subcontract gives you.

Example

Illustrative example. The scenario and figures are invented.

The facts

A lift subcontractor is offered a subcontract that binds it to the main contract so far as it relates to the lifts. No copy of the main contract is attached.

What happens

  1. The subcontractor asks for the main contract before signing. It arrives with the prices blacked out.
  2. The main contract gives the main contractor 28 days to notify its client of a claim. The subcontract requires notice within 7 days.
  3. The subcontractor proposes 21 days, leaving the main contractor a week to pass the notice on.

The outcome

The main contractor agrees. The subcontractor signs with a notice period set against the main contract, not guessed at.

To have the subcontract read together with the main contract terms it passes down, before you sign, see our Pre-Signing Contract Review service.