Back To Back Contract Agreement Example

Other provisions may include permission to participate in dispute settlement proceedings or legal proceedings as defined in the main contract; to benefit from rights accruing to the main contractor, including any rights to extend the time limit or to compensate for losses or expenses resulting from the project; or be entitled to the same rights to suspend the contract or to benefit from guarantees, guarantees or compensations defined in the main contract. Whether lump sum damages are also reflected in a subcontract is the subject of negotiations between the parties to the subcontract. The terms of expiry and termination of a back-to-back agreement may also reflect the main contract, so that when the main contract ends, the back-to-back contract ends. The parties may wish to ensure that, for the same reasons as the main agreement or for other reasons, they may, by written notification, withdraw from a back-to-back agreement (e.g. B the subcontractor may attempt to negotiate a time limit for terminating the subcontract if the subcontract does not comply with an essential obligation of the main contract). To incorporate the primary contractual conditions into the back-to-back contracts, copy the applicable conditions in the new contracts. Be sure to exclude any conditions that do not apply, such as for example. B the total cost of the contract or other clauses which are relevant only to the main contractor. This method of designing back-to-back contracts may seem simple and effective, but can sometimes prove more difficult than writing a standalone contract. Deficiencies in the claims procedures between the two contracts pose a particular risk to the main contractors. This is because in many contracts the right of the main contractor to fully assert the employer is subject to compliance with the obligations to terminate the main contract.

These disclosure obligations must therefore be duly taken into account in the subcontractor. In particular, the main contractor must ensure that it is not prevented from fully asserting the employer by not receiving in good time from the subcontractor the details of the required rights, while it is responsible for the same right vis-à-vis the subcontractor. The customer has a project agreement or contract with the main contractor who receives part of the subcontractor`s activities….