Direct payment to subcontractors
Series: Contract Journal ; 421(6459) 21 January 2004, 22(1)Publication details: 2004Subject(s): Online resources: Summary: "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.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | X125066 (Browse shelf(Opens below)) | 1 | Available | 125066-1001 |
"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.