Construction trusteeship, as mandatory collateral management
of major private construction projects in Hungary, strives for
protecting subcontractors against non-paying general contractor, by
allowing direct payments from employer under certain conditions.
How does it work in practice and what are the limits of
subcontractor protection? We address these issues in this
article.
Introduction
Major construction projects involve more participants (the
employer, the general contractor, the subcontractor) with sometimes
competing interest. While employers and general contractors can
protect their interest when negotiating the main contract with each
other, subcontractors are largely exposed to non-negotiable
contractual provisions reflected from the main contract into the
subcontract.
