What are Affiliated Contracts?

Affiliated contracts refer to secondary-level agreements that establish contractual relations among parties that are one step removed from the primary contractor and subcontractor relationship. This typically involves contracts made between subcontractors and sub-subcontractors. This arrangement allows for a detailed distribution of responsibilities and obligations among various layers of subcontracting, ensuring that all parties in the supply chain are governed by specific agreements tailored to their roles and responsibilities within the project.

These contracts are particularly important in complex projects where multiple tiers of subcontracting are necessary to complete the work efficiently and effectively. They clarify the expectations and obligations of the involved parties, thereby promoting smoother project execution and mitigating potential disputes that could arise from misunderstandings or vague responsibilities.