A back-to-back agreement is an easy-to-enter form of partnership, which is most often used when working together on a particular project. The parties remain independent, no new legal person is created. A client of our company was a subcontractor in a construction project. When the time came for our client to obtain payment, the main contractor argued that, having not received payment from its client, it was not obliged to pay the subcontractor, although there is no agreement between the parties to determine this. Is there a dependency between the principal contractor`s obligation to pay its subcontractors and the receipt of funds by the principal contractor? The main contractor does not wish to be solely responsible for all elements of the project. Therefore, they will endeavor to transfer their commitments and liabilities to the project owner through their subcontractors.

Author

admin