Back-to-Back Clauses In Construction Arbitration

Back-to-back clauses are a common feature of large international construction projects, particularly in the infrastructure and energy sectors, where works are delivered through multi-tiered subcontracting structures. In such arrangements, employers and subcontractors have no direct contractual relationship, a separation commonly referred to as the principle of privity of contract.¹

As a result, this contractual structure can create difficulties when defects, delays, or payment disputes arise across the project chain. To address these challenges, parties rely on back-to-back clauses to align key contractual obligations and risk allocation between the main contract and the subcontracts. When properly drafted, these clauses promote contractual consistency and support the efficient resolution of disputes, including in international construction arbitration.