Nominated Subcontractors: What Is The Risk

Nominated subcontractors continue to be a cause for dispute where there is delay or defective work by that subcontractor.

However, if the nominated subcontractor is forced on the contractor, the contractor may have a defence against any claim for delay or defective work alleged by the subcontractor.

The Dubai Court of Cassation held that:

"When a subcontractor is nominated by the employer or its consultants (without a right for the contractor to refuse), the employer shall be liable for any delay in the performance of the subcontracted part and the main contractor shall not be liable for any delay fines if they can prove that the delay is caused by such subcontractor and the main contractor played no part in the delay."