Main Contractors May Not Be Liable For The Nominated Subcontractors' Delay

The UAE Civil Transaction Code ("CTC") provides in article (890) that the main contractor may sub-contract the construction contract, in whole, or in part, unless otherwise agreed in the construction contract. However, this article highlights that the main contractor, and not the subcontractor, will remain liable towards the employer.

This article does not differentiate between the domestic subcontractors whom being selected and appointed by the main contractors, and the nominated subcontractors whom being selected or nominated by the employers or the consultants.

Therefore, the question now whether, or not, the UAE local courts recognize the difference between these two types of the subcontractors, and thus, the main contractors' liability regarding the subcontractors' defaults, as per article (890) of the UAE CTC, may not be applicable, if the subcontractors are nominated subcontractors. We will answer this question throughout the following case study.