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Article 706. General contractor and subcontractor

📅 Updated: 30.09.2026

1. If the law or the contract does not give rise to the contractor ' s obligation to perform the contract in person, the contractor is entitled to engage other persons in the performance of its obligations (subsistence). 2. A contractor who has contracted a subcontractor in violation of the provisions of paragraph 1 of the present article and who has engaged the contractor in the performance of the contract shall act as a general contractor. 3. The general contractor shall be liable to the contracting authority for the consequences of the loss caused by the subcontractor ' s participation in the performance of the contract. Failure or improper performance by a subcontractor in accordance with the rules of article 313, paragraph 1, and article 403 of the present Code, and liability to a subcontractor for non-performance Except as otherwise provided by law or contract, the employer and the subcontractor are not entitled to bring claims against each other by binding the contract. 4. With the agreement of the general contractor, the employer may enter into contracts for the performance of certain works with others. In this case, the persons concerned are responsible for the failure or improper performance of the work directly in front of the employer.