Back to back contract provisions

Most of the main contractors include a back-to-back clause in their subcontract agreements with their subcontractors. These back-to back-clauses ensure that the main contractor will not be liable to pay the subcontractor payments, unless the main contractor receives the equivalent payment from the employer. Back-to-back contracts are here to stay with contractors believing this is the best way to protect or transfer their risks and obligations to maximise their interests. While main contractors should beware of the opportunities afforded to subcontractors through back-to-back contracts, subcontractors need to be fully aware of the opportunities they have through such contracts.

1 Apr 2013 A take-or-pay clause is essentially an agreement whereby the buyer agrees to either: (1) take, and pay the contract price for, a minimum contract  4 Jan 2016 The legal provisions applying to such contracts are UAE Civil Code, contractor to double liability in absence of back to back payment term. Provisions for the allocation of risk among parties to Example 8-1: A Contract Provision Example with  ately, but the latter directs the former back to the term clause in the contract and reminds An evergreen clause, or automatic renewal provision, is a key term in   agreement forms (e.g. Auction or Tender forms) or in Agreements for Sale and renumbered, as also will reference in any clause to another clause in the Further be asked to decide whether or not a conditional back-up offer should be. Back-up Contract Clause. Subject to the Seller ceasing to be obligated in any way under the previously accepted Contract of Purchase and Sale on the subject  

The department may cause the insertion of provisions in any contract for the request suitable for payment shall be returned as soon as practicable, but not later 

In this case, they want to make sure that there are back-to-back provisions so that they are not directly liable to the client for work completed by a subcontractor. As such, they will ensure that their construction contract with the subcontractor mirrors their contract with the client. Back-to-back contract provisions, where a main contractor tries to incorporate the terms and conditions of a main contract into a subcontract by reference, can cause problems - particularly over “Back to back” is a common term used in construction sub-contracts as a convenient way to pass the obligations of the main contractor under the main contract to the sub-contractor. Whilst we may have a general feeling as to what it means, the precise meaning of the term can only be ascertained after consideration of all circumstances of each case. There are three main approaches: Using general words to incorporate particular terms of the main contract by reference Drafting a stand-alone contract that sets out in detail the particular terms and conditions Using standard form contracts that already include back-to-back provisions in As poorly drafted back-to-back agreements or flow-down clauses can lead to complex and time consuming disputes, it is imperative when drafting or reviewing such agreements to meticulously consider all provisions contained in the relevant contracts and also to remain cognizant of external factors that may affect the validity or enforceability of back-to-back agreements. Back-to-back agreement. A simple back-to-back subcontract for use in commercial situations when the main contractor wishes to subcontract all or part of its obligations under a main contract on a back-to-back basis. The agreement incorporates the terms of the main contract by reference.

20 Mar 2015 This disparate treatment of irreparable harm clauses has wide-ranging implications for contract drafters, parties to agreements, and litigators 

plaintiff entered into a back-to-back contract dated 11-11-199$ with M/S Doon Clause - 13 provides for Contract Price and Payment/Discharge Certificate. Piggy-back applies to contractual agreements in law, more specifically shareholder selling rights. To apply, a piggy-back clause must be included in a  26.2.1 Building and construction contracts in Singapore have been shaped by 26.5.7 Similarly, incorporation solely via back-to-back provisions will not suffice.

26.2.1 Building and construction contracts in Singapore have been shaped by 26.5.7 Similarly, incorporation solely via back-to-back provisions will not suffice.

17 Nov 2017 This stands in contrast to the corresponding provision in AS 2124, which This means checking to make sure their contracts are back-to-back  1 Mar 2008 Samples of these provisions are included below, along with a discussion of what each provision means and why it's needed in a contract. You 

Does Your Contract Contain A Termination For Convenience Clause? By William C. Last, Jr. Attorney at Law. Most construction contracts include provisions for 

In this case, they want to make sure that there are back-to-back provisions so that they are not directly liable to the client for work completed by a subcontractor. As such, they will ensure that their construction contract with the subcontractor mirrors their contract with the client. Back-to-back contract provisions, where a main contractor tries to incorporate the terms and conditions of a main contract into a subcontract by reference, can cause problems - particularly over “Back to back” is a common term used in construction sub-contracts as a convenient way to pass the obligations of the main contractor under the main contract to the sub-contractor. Whilst we may have a general feeling as to what it means, the precise meaning of the term can only be ascertained after consideration of all circumstances of each case. There are three main approaches: Using general words to incorporate particular terms of the main contract by reference Drafting a stand-alone contract that sets out in detail the particular terms and conditions Using standard form contracts that already include back-to-back provisions in As poorly drafted back-to-back agreements or flow-down clauses can lead to complex and time consuming disputes, it is imperative when drafting or reviewing such agreements to meticulously consider all provisions contained in the relevant contracts and also to remain cognizant of external factors that may affect the validity or enforceability of back-to-back agreements. Back-to-back agreement. A simple back-to-back subcontract for use in commercial situations when the main contractor wishes to subcontract all or part of its obligations under a main contract on a back-to-back basis. The agreement incorporates the terms of the main contract by reference.

The less comfortable the lenders are with these provisions the greater amount both the PPA or the concession agreement, the best answer is to back to back. establishes the underlying provisions for the rest of the contract and usually prior to the exporter being paid, the exporter may have no right to take back the  2 Oct 2019 Take or pay is a provision, written into a contract, whereby one party has the Take or pay provisions benefit both the buyer and the seller by sharing Back-to -back letters of credit consist of two LOCs used in conjunction to