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Was Ist Ein Back To Back Agreement

Was Ist Ein Back To Back Agreement

As far as the subcontractor is concerned, you need to be careful to minimize the risk gap. What are the disadvantages and risks that arise from the contractual terms in relation to the customer, must be borne by the subcontractor at least to the same extent. Simply put, the subcontractor should not be better off than you in front of customers. This principle calls German in German “back-to-back.” There is no single stop solution for the various possible pitfalls associated with back-to-back contracts. Regardless of the approach taken to the development of back-to-back contracts, the decision should never be motivated by the intention to reduce a rigorously rigorous design process. Both the main contractors and the subcontractors will have a strong interest in the properly developed subcontracting. In addition, in a series of subcontractings, the principal contractor must ensure that its main contractual obligations are properly distributed among the various subcontractors and that they are not omitted without knowing it. There are therefore clear benefits for contractors in the implementation of return agreements. However, in practice, it can be difficult to conclude back-to-back agreements. It is precisely when the “big” supplier has to act as a subcontractor that the desire for “back-to-back” is often unfulfilled. Indeed, the “big ones” are often unwilling to negotiate individual contracts with “small” general contractors. This does not necessarily mean that cooperation cannot work.

However, you should compare the contractual terms on both sides and check what the risks are for you and whether you are acceptable accordingly. At the end of the day, in these cases, it is also a matter of judiciously balancing business opportunities with legal risks. Back-back agreements, where a principal contractor attempts to entrust obligations and commitments to the employer to his subcontractors, are becoming more common in construction projects. While they may be a convenient way to transfer risks and commitments down the chain of responsibility, inadequate wording can lead to particularly complex and difficult-to-resolve disputes. In this newsletter, we discuss the main reasons why return contracts can be particularly controversial and the main editorial issues that need to be considered and addressed in order to minimize the risk of litigation. The first approach is often seen by contractors as the simplest and therefore most cost-effective way to reduce debt. But without careful attention, such an approach can often create difficulties. Particular caution should be exercised when developing back-to-back provisions. For example, a general provision that all references to the main contract to the “employer” and “principal contractor” in the subcontract must be read as references to the “primary contractor” or “subcontractor” cannot be adapted to any obligation and lead to the cancellation or interpretation of a substantial duration of the contract.