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Construction Law/Termination of Contract between Contractor and Nominated Sub Contractor


Dear Sir

Employer has entered into a Contract with the Main Contractor for the whole works and has nominated nearly 5 subcontractors who has entered into an agreement with the Contractor for the MP works. The MEP works payment is made from provisional sums.The Main Contractor could not manage to arrange the BG for Performance guarantee from the MEP Contractor on time and this resulted in delay in their payment and Employer directle made the payment to the nominated sub contractor.further for Cost reduction Employer wants to enter into the direct Contract with the MEP contractors and MEP Contractors has also agreed for the same.   
Which clause in Fidic (Red book) 1999 permits the Employer to terminate the agreemet between Main Contractor and Nominated sub contractor and Can a nominated sub contractor write directly to Employer for non payment of dues.

Dear Sreekesh
Under conditions of Clause FIDIC(Red book)1999,there is no provision in the contract that Employer to terminate the agreement between nominated contractor and the main contractor. Under clause 15.2 Employer can terminate the main contract agreement.
Yes, nominated Sub contractor may write to the Employer for non payment of dues.
Employer can enter in to direct contract as per the procurement law of the country.
I hope this will help you.
With best regards
Sanjay Khandelwal  

Construction Law

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Sanjay Khandelwal


I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.


I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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