Contractor vs. Subcontractor: Who’s Liable in Construction Disputes in Bahrain?

Contractor vs. Subcontractor: Who’s Liable in Construction Disputes in Bahrain?


Construction projects in Bahrain often involve multiple layers of responsibility from project owners and main contractors to subcontractors, suppliers, and consultants. When a dispute arises due to a defect, delay, safety issue, or breach of contract, the critical question becomes: Who is legally liable  the contractor or the subcontractor?

In this blog, we explain how liability is assigned between contractors and subcontractors under Bahraini law, what factors influence legal responsibility, and how construction disputes are typically resolved. We also provide an illustrative example to demonstrate how lawyers assess liability without referring to specific law firms.

 

Understanding the Relationship

A contractor is the party that enters into a direct agreement with the project owner (client) to execute the construction works. A subcontractor is engaged by the main contractor to perform a specific portion of the work such as electrical, mechanical, excavation, or finishing services.

Although subcontractors carry out much of the physical work on-site, the main contractor remains contractually responsible to the project owner for the overall project outcome, including any faults or delays caused by subcontractors.

 

 Legal Principles in Bahrain

Under Bahraini civil and commercial law:

  • The main contractor is liable to the project owner for the subcontractor’s actions or omissions unless otherwise agreed.
  • The subcontractor is only liable to the main contractor not directly to the project owner unless a direct contract exists.
  • The contractor may recover losses from the subcontractor if the dispute results from the subcontractor’s breach of duty, poor workmanship, or non-compliance.

This principle ensures that the project owner always has a clear point of contact and responsibility even if the actual work is performed by another party.

 

When Is the Contractor Liable?

  • Delay in project completion caused by subcontractor performance
  • Structural or technical defects caused by subcontractor’s work
  • Breach of safety regulations or site violations
  • Failure to supervise or coordinate subcontractor activities
  • Non-payment or disputes affecting project handover

The contractor may also be held liable for subcontractor selection, especially if the subcontractor was clearly unqualified or unlicensed.

 

When Is the Subcontractor Liable?

  • Direct breach of the subcontract agreement
  • Defective workmanship or failure to follow technical specifications
  • Negligence that causes damage to third parties or workers
  • Failure to comply with site safety rules or permit requirements

While subcontractors are not usually directly liable to the project owner, they can be sued by the contractor if the contractor is held liable and suffers financial damage as a result.

 

Example:

A main contractor was hired to complete a luxury residential building. The electrical systems were subcontracted to a third-party firm. After project completion, several power failures occurred, leading the project owner to file a claim against the main contractor for breach of contract and non-compliance with standards.

The main contractor engaged a lawyer to review the subcontract and site reports. The investigation revealed that the subcontractor used materials that didn’t comply with project specifications. However, the main contractor had failed to properly inspect and approve those materials.

Legally, the project owner’s claim remained valid against the contractor, who then initiated a separate legal action against the subcontractor for damages and breach of subcontract terms.

This example demonstrates how liability often flows through the contractual chain, and why legal clarity, supervision, and documentation are essential at every level.

 

Risk Management Tips for Contractors

  • Always use detailed subcontract agreements outlining scope, timelines, quality, and liability
  • Conduct regular site supervision and material approvals
  • Verify subcontractor licenses, insurance, and experience
  • Maintain clear communication and documentation on all instructions
  • Include indemnity clauses allowing recovery if a subcontractor causes loss

 

 Risk Management Tips for Subcontractors

  • Understand and comply fully with technical specifications and contract terms
  • Maintain proper insurance coverage
  • Document all instructions and changes in writing
  • Notify the contractor immediately of any issues or risks
  • Seek legal advice before signing any subcontract with unclear liability clauses

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