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Construction Law/Application of Privity under a Subcontract Agreement


Dear Mike,

My client is an ID subcontractor who was delayed by the MEP Subcontractor's late work. The intention is to claim for an extension of time with prolongation costs from the main contractor (since the MEP sub is under his umbrella).

However, the contract contains the following Privity clause: "No provision of the Subcontract is intended to or does confer upon any third
party (including any Sub-Subcontractor) any implied benefit or right
enforceable at the option of the third party against the Contractor &

So my question is: 1. What does the clause imply.  2. Can we argue that since privity applies to other subcontractor's ( as it seems to be in the clause above), the ID subcontractor can claim for the delays caused by other subcontractors, from the main contractor.?

The subcontract agreement is a bespoke contract.

Thank you,

Hi Suhaib
The clause means that there is no contractual relationship between sub contractors employed by the contractor.
This supports your claim because you cannot make a claim against the MEP sub contractor -only the main contractor.
The best delay analysis method to show delays caused by other sub-contractors is the As Built v As Planned method.
This is fully described in my eBook "Principles of Delay Analysis" download from my website 75.00 though Paypal.
Best regards
Mike Testro

Construction Law

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Mike Testro


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45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Society of Construction Law Adjudication Society ex Planning Engineers Organisation

6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Associate Member of the Institue of Building

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Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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