Subcontract Agreement Malaysia

Although MC delegates the execution of part of the work to its national subcontractors, MC remains fully responsible for this work vis-à-vis the employer. The employer does not in any way oblige the risk of failure of the subcontractor. MC is also directly responsible for payment and basic cooperation vis-à-vis the national subcontractor. Appointment is the process by which the employer designates, selects or approves who will perform a subcontracting or subcontracting role qualified as a designated subcontractor (“NSC”). The NSC then enters into a subcontract agreement with the Contractor (“MC”). This is a way for the employer to retain some control over the choice of contractor or supplier, without necessarily being directly involved in detailed contractual agreements with the specialist. If the “national subcontractor” is a “subcontractor” whose choice and appointment are traditionally no other than to give consent if the provisions of the main contract so require. The subcontractor`s order is treated as something that only benefits MC (a “national matter”) 3 Try to negotiate more favorable subcontracting terms with the NSC. In addition, the employer may, if it so wishes, control the terms of the subcontract, including the price and extent of NSC`s work. The appointment is used because the use of the system provides benefits to the employer.

The main benefit to the employer is the election control and benefit required by NSC. Above all, the employer reserves the right to choose the subcontractor. The MC according to the provisions of the Red Book 4. The obligation may be faced with an insufficient description of NSC works, with the exception of the inclusion of a provisional amount on the list of coins. Therefore, MC may refuse the appointment if it has reasonable grounds to do so. What is “appropriate” must take into account the importance of the appointment date, the impact of a contract appointment on the MC program, and NSC`s willingness to commit to completing its work by a date that merges with the program. 2 The works which are the subject of the appointment, omit the main contract and are carried out by an independent contractor. There may be claims. These veto rights are essential and TMs should generally not hesitate to exercise these rights. Nominated subcontractors and subcontractor risks under the terms of the FIDIC 1987 Red Book 4th Edition contract An NSC may offer the lowest offer or the most high-end design input or a combination of price and quality benefits. .

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