Subcontractor

A subcontractor is a contractor to whom the main contractor assigns part of the work — or sometimes all of it — under a separate contract between them, such as electrical, plumbing, HVAC, waterproofing or lift works, with no direct contract with the employer in principle. The project benefits from the subcontractor's specialist expertise, while the main contractor remains responsible to the owner. In Saudi Arabia, the Civil Transactions Law regulates subcontracting in two articles: the first allows the contractor to assign all or part of the work to a subcontractor unless legal provisions, the agreement or the nature of the work require otherwise or the contractor's person was a material consideration, with the contractor remaining liable to the employer; the second provides that the subcontractor may not claim from the employer any sum owed to the contractor unless the contractor has assigned (hawala) that claim to him. Owners therefore typically include clauses requiring their prior approval of subcontractors and allowing direct payment through a documented assignment where needed. Subcontracting has practical consequences: defects in the subcontractor's work remain the main contractor's responsibility, and late payment of subcontractors can halt critical site work. Government project contracts and procurement rules may also impose specific controls on subcontracting, and specialized activities may require the subcontractor to be qualified or classified in that activity.