Question
Mr K, a sub-contractor, was offered a sub-contract work by Mr T, the main-contractor to complete the wiring works of Menara 118. The sub-contract states
Mr K, a sub-contractor, was offered a sub-contract work by Mr T, the main-contractor to complete the wiring works of Menara 118. The sub-contract states that payment will be made on a back-to-back basis, namely sub-contractor is only paid by the main-contractor after the client has paid the main-contractor. Mr K, fresh from a bitter experience of not being paid in his previous work, seeks for advice to overcome this issue. Should Mr K asked for your professional opinion, what would your advices be based on the facts given above.
Option for Mr K, prior to the acceptance of the sub-contract in ensuring that direct payment is made by the Client. Elaborate and justify your answer.
In the event the above option is not accepted, discuss 3 Alternative Dispute Resolutions methods, and suggest the best alternative dispute resolutions with consideration that the suggested option is low cost, fast and enforceable by the law. Elaborate and justify your answer.
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