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1.2 Subcontracting
(a) The Contractor shall not subcontract the whole of the Works.If the Contractor fails to comply with this Clause 17.2(e) upon repeated request from the Employer or the Engineer, the Employer may elect (at its sole discretion) to pay part or all of the Subcontractor's Dues directly to the Subcontractor in which case direct payment by the Employer to the Subcontractor shall operate to discharge the Employer from the corresponding payment obligation which the Employer would otherwise have had towards the Contractor under the Contract.(e) Where any application for an Interim Certificate includes any payment in respect of work done and/or Plant or Materials provided by any Subcontractor, the Employer or the Engineer may require the Contractor to provide with such application reasonable evidence that all amounts due for such Subcontractor's work, Plant and/or Materials (less applicable deductions for retention or otherwise), have been paid to the Subcontractor, or that the Contractor had reasonable cause for withholding or refusing to pay any such amounts to the Subcontractor (and accordingly notified such Subcontractor in writing).(c) The Contractor shall maintain, and upon request provide to the Employer or the Engineer (as the case may be), complete, accurate and up to date records relating to all subcontracts and dealings with Subcontractors, including, without limitation, originals of the signed subcontract, payment applications and certificates, and taking-over/completion certificates.Such consent will be at the Employer's absolute discretion and in any event subject to prequalification of any proposed Subcontractor in accordance with Employer's criteria and policies.The Contractor may, with a prior written consent of the Employer, appoint Subcontractors for a part of the Works.


Original text

1.2 Subcontracting
(a) The Contractor shall not subcontract the whole of the Works. The Contractor may, with a prior written consent of the Employer, appoint Subcontractors for a part of the Works. Such consent will be at the Employer's absolute discretion and in any event subject to prequalification of any proposed Subcontractor in accordance with Employer's criteria and policies.
(b) If a Subcontractor is appointed in accordance with the Contract, the Subcontractor shall have, to the extent applicable to the Subcontractor's appointment, all such rights that the Contract assigns to the Contractor as are necessary for the carrying out of the Works, and the Contractor shall procure and be liable, that the Subcontractor shall have, and shall comply with, all the obligations that the Contract assigns to the Contractor.
(c) The Contractor shall maintain, and upon request provide to the Employer or the Engineer (as the case may be), complete, accurate and up to date records relating to all subcontracts and dealings with Subcontractors, including, without limitation, originals of the signed subcontract, payment applications and certificates, and taking-over/completion certificates.
(d) Every subcontract shall:
(i) contain a prohibition on assignment by the Subcontractor in the same terms as Clause 17. l(a);
(ii) contain a total prohibition on subcontracting the whole of the works covered thereby;
(iii) contain a prohibition on subcontracting any part of the works covered thereby without the prior written consent of the Employer and the Engineer; and
(iv) allow for the assignment of the subcontract to the Employer without prior consent of the Subcontractor.
(e) Where any application for an Interim Certificate includes any payment in respect of work done and/or Plant or Materials provided by any Subcontractor, the Employer or the Engineer may require the Contractor to provide with such application reasonable evidence that all amounts due for such Subcontractor's work, Plant and/or Materials (less applicable deductions for retention or otherwise), have been paid to the Subcontractor, or that the Contractor had reasonable cause for withholding or refusing to pay any such amounts to the Subcontractor (and accordingly notified such Subcontractor in writing). The Employer may withhold the amounts due to Subcontractor in respect of which the Contractor failed to submit such reasonable evidence as required pursuant to the foregoing sentence (for the purposes of this this Clause 17.2(e), the Subcontractor's Dues) from the Contract Sum and/or any other amounts due to the Contractor under the Contract until such time as the Contractor complies with this Clause 17.2(e). If the Contractor fails to comply with this Clause 17.2(e) upon repeated request from the Employer or the Engineer, the Employer may elect (at its sole discretion) to pay part or all of the Subcontractor's Dues directly to the Subcontractor in which case direct payment by the Employer to the Subcontractor shall operate to discharge the Employer from the corresponding payment obligation which the Employer would otherwise have had towards the Contractor under the Contract. In addition, the Employer shall be entitled to recover from the Contractor any amount by which the direct payment of the Subcontractor's Dues by the Employer to the Subcontractor exceeded the amounts withheld by the Employer under this Clause 17.2(e) by deducting such excess from amounts due or which may become due from the Employer to the Contractor or by recovering the same as a debt due from the Contractor.


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