Direct payment to subcontractors
Brewer, G.
Direct payment to subcontractors - 2004 - Contract Journal 421(6459) 21 January 2004, 22(1) .
"Brican Fabrications Ltd v Merchant City Developments Ltd" (CSIH 17 July 2003, [2003] BLR 512), concerned the direct payment of subcontractors by the employer in the event of the insolvency of the main contractor. Brican (B) maintained that Merchant (M) had undertaken that, in the event of B entering into a subcontract with subcontractor Circle (C), M would make payment direct to it for its work. M claimed it had agreed only to deduct from amounts due to C under the main contract any monies which became due under the subcontract and redirect them to B. The Sheriff Principal's earlier decision was overturned by the CSIH, which held in favour of B. In certain circumstances an employer can bypass the main contractor to make direct payments to a subcontractor. View judgment at www.scotcourts.gov.uk.
Insolvency
BRICAN FABRICATIONS LTD V MERCHANT CITY DEVELOPMENTS LTD
SCOTLAND
SUBCONTRACTORS
DIRECT PAYMENTS
Direct payment to subcontractors - 2004 - Contract Journal 421(6459) 21 January 2004, 22(1) .
"Brican Fabrications Ltd v Merchant City Developments Ltd" (CSIH 17 July 2003, [2003] BLR 512), concerned the direct payment of subcontractors by the employer in the event of the insolvency of the main contractor. Brican (B) maintained that Merchant (M) had undertaken that, in the event of B entering into a subcontract with subcontractor Circle (C), M would make payment direct to it for its work. M claimed it had agreed only to deduct from amounts due to C under the main contract any monies which became due under the subcontract and redirect them to B. The Sheriff Principal's earlier decision was overturned by the CSIH, which held in favour of B. In certain circumstances an employer can bypass the main contractor to make direct payments to a subcontractor. View judgment at www.scotcourts.gov.uk.
Insolvency
BRICAN FABRICATIONS LTD V MERCHANT CITY DEVELOPMENTS LTD
SCOTLAND
SUBCONTRACTORS
DIRECT PAYMENTS