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ARTICLE · 25 NOVEMBER 2022

Main Contractor's Failure To Pay Subcontractors

Main contractor insolvency means that he has become unable to pay his outstanding financial obligations, including the fees of the subcontractor.

EgyptReal Estate and Construction

Main contractor insolvency means that he has become unable to pay his outstanding financial obligations, including the fees of the subcontractor. This could be due to the main contractor's failure to obtain his fees from the employer with the unavailability of financial solvency. The legislator intervened in that case to protect the subcontractor, who had obligatory rights, as he did not fail to perform his work, rather, he performed his work to the fullest. This drives us to clarify some issues related to the situation of the subcontractor in relation to the contractual relationship between the main contractor and the employer. Again, the legislator intervened to provide the necessary protection for that weaker and more affected party in the event of default by the main contractor.

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