In late 2011 FIDIC published the FIDIC Subcontract for Construction, First Edition (in this paper referred to as the “FIDIC Subcontract”). This FIDIC form addresses the normal arrangement where under the sub-contractor is employed by the contractor in the construction of the subcontract works in accordance with the design details provided by the employer under the main contract5. This subcontract document was prepared by FIDIC for use where the main contract is based on the FIDIC Conditions of Contract for Construction 1999 (in this paper referred to as the “main contract”). If it is to be used where the main contract is based on the FIDIC Multilateral Development Bank harmonised edition, then necessary amendments are needed to reflect the significant differences between this harmonised edition and the FIDIC Conditions of Contract for Construction 1999.

A subcontract is a separate and integral contract between a main contractor and a sub-contractor but is an ancillary contract – it cannot exist independently and depends on the existence of a main contract. Both contracts are aimed at achieving the same objective or have a common subset of objectives. Subcontracts may be used for a great variety of services, for example: the execution and completion of permanent subcontract works, the design and/or the operation or maintenance of the subcontract works as well as mere supply of goods and materials or combined supply and assembly of equipment and plant. The procurement of subcontracts