Questions & Answers
Eligibility of subcontracting by the head contractor in the UAE
Hi Hari,
I hope this finds you well.
I have a query regarding subcontracting for the supply of materials to the site, installation, testing and commissioning.
In this regard, I wish to understand whether under the UAE laws an employer can enter into a contract with a subcontractor.
Or can the contractor only enter into a contract with the subcontractor?
Please provide me with your valuable insight on this.
Many thanks.
Regards
Archit Gupta
Advocate
Dear Mr Gupta,
Thank you for getting in touch with me on this.
Please note that under the UAE Law, there exists no impediment on the employer or the contractor in contracting with the subcontractor. It depends if there is a chain of contract i.e. Employer- Contractor- Subcontractor.
If the employer has reserved the power in relation to the employment of subcontractor, then obviously the employer only will have the power. Usually, in such contracts, the contractor has to take permission before employing a subcontractor.
In summary, it boils down to the contractual relationship between the parties and the law does not impose any restrictions on such employment.
I trust you will find this helpful.
Regards,
Hari Wadhwana
