--- title: "Unpaid sub-contractor beaten by labourers" subject: "Engineering Professional Practice" chapter: 7 key: "semester_8/engineering_professional_practice:subcontractor-unpaid-labour-case" source: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/subcontractor-unpaid-labour-case site: BCT Engineering --- # Unpaid sub-contractor beaten by labourers Engineering Professional Practice · Chapter 7: Case Studies based on Engineering Practices - Asked in: 2071 Bhadra, 8 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/subcontractor-unpaid-labour-case - Whole chapter: https://www.bctengineer.com/md/semester_8/engineering_professional_practice/chapter-7 ## Question Sub-contractor Mr. A was severely beaten by his labors because he had not paid them for more than seven months. During investigation it was revealed that client did not pay to the contractor and contractor did not pay to the subcontractor. The client didn't pay because consultant did not submit the necessary bill report. The consultant says the work is defective and quality of the work is not as per specifications. While the contractor does not agree because it was not informed on site and blames that the consultant wants covert money. Discuss the case considering contract law, tort, liability and negligence whatsoever applicable. ## Short answer Primary fault lies with the consultant for failing to certify or notify defects and for alleged bribe demand, then contractor for non-payment and client for inaction. Labourers' wages are a legal right, but their assault is a criminal offence. Use joint inspection, pay undisputed amounts, and pursue dispute resolution. ## Answer #### Chain of events The client does not pay the main contractor, because the consultant has not submitted the bill report. The contractor does not pay the sub-contractor. The sub-contractor does not pay the labourers for seven months. The labourers beat Mr. A. The consultant says the work is defective; the contractor says it was never told about this on site, and alleges that the consultant wants a bribe. #### Contract law - Each contract binds only its own parties (privity): client-contractor, contractor-sub-contractor, sub-contractor-labourers. The sub-contractor has no direct claim against the client. - The client must pay the contractor on certified bills within the time stated in the contract. Delay by the consultant in certifying is not the contractor's fault; if the work conformed, the non-payment is a breach, and the contractor can claim interest, an extension of time and, finally, termination. - If the work really is defective, the consultant must tell the contractor in writing (notice of defects, rejection and rectification) and certify the defect-free part. Not informing the contractor on site is a procedural failure by the consultant. The contractor has a duty to correct defects. - The contractor remains responsible to the client for the sub-contractor's work, and under the sub-contract it must pay the sub-contractor for work done, unless a valid back-to-back clause applies or the work is defective. - The labourers' wages are a legal right under the Labour Act and cannot be withheld; the employer (the sub-contractor, and the contractor as principal employer) is liable for them. #### Tort, negligence and criminal liability - **Consultant:** owes a duty of care to certify fairly and promptly. Delaying payment without a written reason, or being negligent in inspection, is professional negligence. Asking for covert money is corruption: an offence under the Prevention of Corruption Act 2059 (a complaint can go to the CIAA) and a gross breach of the Nepal Engineering Council code. This must be proved, not assumed. - **Contractor:** if the work is defective, it is in breach and negligent; if it is not, it should have insisted on its rights through the dispute clause. Failure to pay the sub-contractor is a breach of contract. - **Labourers:** the assault is a criminal offence (hurt/battery under the Muluki Criminal Code 2074). Their grievance is genuine, but the act is not justified. Mr. A is the victim and can file a criminal case and claim compensation. - **Sub-contractor Mr. A:** is liable to pay the labourers even when he is not paid himself; he should have used his legal remedies. #### Judgement and resolution The chain shows poor communication and no timely certification. The primary fault lies with the consultant (for failing to certify or notify, and for the alleged bribe demand), then the contractor (no notice, non-payment) and the client (no action to resolve the matter). Steps: 1. Joint inspection and testing by an independent party to find out whether the work is defective. 2. Pay the undisputed portion at once; pay the labourers' wages first. 3. Use the contract's dispute clause (engineer's decision, adjudication or arbitration). 4. Report the bribe allegation to the proper authority for investigation. 5. File a police case for the assault, and report the wage default to the labour office. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Why does the sub-contractor have no direct claim against the client? A. Because sub-contractors are not allowed to claim B. Because the client is always correct C. Because each contract binds only its parties (privity): client-contractor, contractor-sub-contractor D. Because the Labour Act forbids it Answer: C. Under privity, each contract binds only its parties, so the sub-contractor's claim is against the main contractor. (Key point: Privity of contract) 2. If the consultant believes the work is defective, what must he do? A. Withhold the bill report silently B. Tell the client only C. Wait until the contractor complains D. Notify the contractor in writing (notice of defects, rejection and rectification) and certify the non-defective part Answer: D. Not informing the site is a procedural failure; the consultant must give written notice and certify the acceptable part. (Key point: Consultant's duty on defects) 3. How does the answer treat the labourers' wages and the assault on Mr. A? A. Wages are a legal right the employer must pay even when unpaid; the assault is still a criminal offence and not justified B. Wages may be withheld until the client pays; the assault is justified C. Both are civil matters only D. The labourers are liable for not working Answer: A. Wages are a right under the Labour Act and the sub-contractor must pay them; the grievance is genuine but the assault is a crime. (Key point: Labourers' wages and the assault) 4. Which is a recommended resolution step? A. Stop all payments until a court decides B. Joint inspection by an independent party, immediate payment of the undisputed portion and labourers' wages first, and use of the dispute clause C. Let the labourers settle it with Mr. A D. Ignore the bribe allegation Answer: B. An independent inspection, paying undisputed amounts and wages first, and using the dispute clause (engineer's decision, adjudication or arbitration) are recommended. (Key point: Resolution steps) ## Related in Engineering Professional Practice - [Engineer's relation with client, contractor, fellows](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aengineer-relation-client-contractor) — Engineering Professional Practice, chapter 3 - [Contractor asks supervisor to prepare running bill](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Acontractor-running-bill-bribe) — Engineering Professional Practice, chapter 7 - [Contractor friend's dinner and guesthouse offer](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Afriend-dinner-guesthouse-ethics) — Engineering Professional Practice, chapter 7 - [Slippery floor injures consultant engineers](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aslippery-floor-injury-blame) — Engineering Professional Practice, chapter 7 - [Engineer opens confidential salary file](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Aconfidential-salary-file-conduct) — Engineering Professional Practice, chapter 7 - [RCC bridge failure probe team judgment](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Abridge-failure-probe-team) — Engineering Professional Practice, chapter 7 ## Related in other subjects - [Client, consultant and contractor relationship](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aclient-consultant-contractor-relation) — Construction Management, chapter 1, asked 6× - [Two roles each of client, consultant, contractor](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aroles-client-consultant-contractor) — Construction Management, chapter 1 - [Direct methods of sub-surface investigation](https://www.bctengineer.com/question.md?key=semester_4%2Fengineering_geology_ii%3Adirect-subsurface-methods) — Engineering Geology II, chapter 4, asked 3× - [Surface versus sub-surface investigation](https://www.bctengineer.com/question.md?key=semester_4%2Fengineering_geology_ii%3Asurface-vs-subsurface-investigation) — Engineering Geology II, chapter 4, asked 3×