Construction Law Glossary

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Plain-language explanations of key terms — for engineers and project managers, not lawyers.

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Subcontract

A contract between the main contractor and a third party (subcontractor) under which the subcontractor undertakes to perform part of the works. Under FIDIC, the main contractor remains fully responsible to the employer for work carried out by subcontractors. FIDIC Sub-Clause 4.4 requires the contractor to obtain the Engineer's consent before subcontracting. Pay-when-paid clauses (where the subcontractor is only paid when the main contractor is paid) may be void in some jurisdictions.

Sectional Completion

Completion of a defined section or part of the works before the overall works are complete. FIDIC contracts permit sectional completion through the Particular Conditions, with separate completion dates and separate liquidated damages for each section. Sectional completion is common in large infrastructure projects where parts of the facility need to be handed over for use before the whole project is finished.

Suspension

A temporary halt to the works, which may be ordered by the Engineer (under FIDIC Sub-Clause 8.9) or initiated by the contractor (under FIDIC Sub-Clause 16.1). A suspension ordered by the Engineer for reasons within the employer's risk may entitle the contractor to additional time and money. If a suspension ordered by the Engineer lasts more than 84 days, the contractor may treat the suspended part as a variation and, ultimately, may have grounds to terminate.

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