"Pay When Paid And Pay If Paid"- UAE Perspective

The subcontractors play a vital role in the construction industry as the sub-contracting work represents a significant portion of the construction projects. It is the natural concern for the subcontractors to be getting paid on time for the work performed on a construction. The construction contracts often contain the provisions that determine when a general contractor will pay a sub-contractor. The payment issues are considered to be one of the leading causes for the delay of the construction projects. The procedure of construction contract payments from the owner to the general contractor and finally to the sub-contractor is an inherent part of any plan. Sometimes the main contractors may expose to make payments to their subcontractors when they have not received the corresponding payments from the employer. As a result, the main contractor often includes the contingent payments in subcontracts and passes the payment related risks to the subcontractors. The