FIDIC Clause 4.4: Subcontractor Rules Explained Simply

[Contractor’s Letterhead]

Date:     [dd MMM yyyy]
Ref:      [Contract ref./Pkg No.]

To:       The Engineer  
          [Engineer’s company & address]

Subject:  Request for Consent – Proposed Subcontractor under Clause 4.4

Dear Sir/Madam,

In accordance with Clause 4.4 of the Contract, we hereby seek your consent to engage the following Subcontractor:

•  Name & address:  ________________________  
•  Scope of work:  ________________________  
•  Estimated value (% of Accepted Contract Amount):  ______ %  
•  Relevant experience & references:  see Annex A

Kindly note that, should no Notice of objection be received within 14 days of this submission, consent will be deemed granted under Clause 4.4(iii).  

Please advise if any further information is required.

Yours faithfully,  
_________________________  
[Authorised signatory]  
for and on behalf of [Contractor]

[Contractor’s Letterhead]

Date:     [dd MMM yyyy]
Ref:      [Contract ref./Pkg No.]

To:       The Engineer  
          [Engineer’s company & address]

Subject:  Request for Consent – Proposed Subcontractor under Clause 4.4

Dear Sir/Madam,

In accordance with Clause 4.4 of the Contract, we hereby seek your consent to engage the following Subcontractor:

•  Name & address:  ________________________  
•  Scope of work:  ________________________  
•  Estimated value (% of Accepted Contract Amount):  ______ %  
•  Relevant experience & references:  see Annex A

We would appreciate your written consent at your earliest convenience to avoid any impact on the Time for Completion.

Please advise if any further information is required.

Yours faithfully,  
_________________________  
[Authorised signatory]  
for and on behalf of [Contractor]

[Contractor’s Letterhead]

Date:     [dd MMM yyyy]                     Notice No.: [###]

To:       The Engineer

Subject:  28-Day Notice – Commencement of [Subcontractor] on Site

Dear Sir/Madam,

Pursuant to Clause 4.4, this serves as formal notice that [Subcontractor] will:

•  Commence off-Site fabrication on:  [date]  
•  Mobilise to the Site on:            [date = today + 28 days]

Please confirm any induction, security or interface requirements at least 14 days before mobilisation.

Best regards,  
_________________________

[Contractor’s Letterhead]

Date:     [dd MMM yyyy]                     Notice No.: [###]

To:       The Engineer

Subject:  Objection to Nomination of [Proposed Nominated Subcontractor] – Clause 4.5.1

Dear Sir/Madam,

We refer to your instruction dated [date] nominating [Company] as Subcontractor.  
Under Clause 4.5.1, we hereby raise a reasonable objection on the following grounds:

1.  Insufficient financial capacity (see credit report, Annex A).  
2.  Proposed form of subcontract omits an indemnity covering negligent acts (Clause 4.5.1(b)).  
3.  Lack of resources to meet the scheduled start date of [date].

Unless the Employer elects to indemnify the Contractor in accordance with Clause 4.5.1, we respectfully request that an alternative Subcontractor be nominated.

Yours faithfully,  
_________________________

[Contractor’s Letterhead]

Date:     [dd MMM yyyy]

To:       The Engineer

Subject:  Accumulated Subcontract Value Approaching Cap – Clause 4.4(a)

Dear Sir/Madam,

Current approved subcontracts total 38% of the Accepted Contract Amount; the cap defined in the Contract Data is 40%.  
Award of the forthcoming [work package] (value 4%) would exceed this ceiling.

Options for consideration:

A.  Engineer’s consent to exceed the cap to 44%; or  
B.  Instruction to re-package works for direct Contractor execution.

Kindly advise within 7 days to avoid programme impact on [milestone].

Regards,  
_________________________

[Contractor’s Letterhead]

Date:     [dd MMM yyyy]                     Notice No.: [###]

To:       The Engineer

Subject:  Notice of Claim – Delay in Consent for [Subcontractor] (Clause 20.2 linked to 4.4)

Dear Sir/Madam,

Event giving rise to Claim  
•  Engineer’s consent to [Subcontractor] was received on [date], 21 days after our submission (Clause 4.4).  
•  The delay prevented critical works from commencing, causing a projected [___] days’ slippage to the Time for Completion.

This Notice is issued within 28 days of becoming aware of the delay, in accordance with Clause 20.2.1.  
We reserve our right to submit a fully detailed Claim (time and cost) within the 84-day period under Clause 20.2.4.

Yours faithfully,  
_________________________