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Independent Contractor Subcontractor Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Independent Contractor Subcontractor Agreement

"I need an Independent Contractor Subcontractor Agreement for a Saudi-based IT consulting firm engaging software developers, with specific provisions for intellectual property rights and data protection, to be effective from March 2025."

Document background
The Independent Contractor Subcontractor Agreement is essential for businesses operating in Saudi Arabia that engage external service providers or specialists as independent contractors rather than employees. This document is particularly relevant in the context of Saudi Arabia's evolving business landscape, where companies increasingly rely on specialized contractors for project-specific work. The agreement ensures compliance with Saudi Arabian commercial law, labor regulations, and Sharia principles while clearly establishing the independent nature of the relationship. It becomes necessary when a company needs to engage contractors for specific projects, technical expertise, or specialized services while maintaining clear legal separation from employment relationships. The document addresses critical aspects such as scope of work, payment terms, intellectual property rights, confidentiality, and dispute resolution mechanisms, all within the framework of Saudi Arabian legal requirements.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, relationship between parties, and reference to the main contract (if applicable)

3. Definitions: Key terms used throughout the agreement, including technical terms, project-specific terminology, and legal definitions

4. Scope of Services: Detailed description of services to be provided, deliverables, and performance standards

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Compensation and Payment Terms: Fee structure, payment schedule, invoicing requirements, and currency specifications

7. Independent Contractor Status: Clear statement of independent contractor relationship and disclaimer of employment relationship

8. Obligations and Responsibilities: Specific duties of both parties, including reporting requirements and quality standards

9. Compliance with Laws: Requirement to comply with Saudi laws, regulations, and Sharia principles

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property Rights: Ownership and usage rights of work product and pre-existing IP

12. Insurance and Liability: Insurance requirements and allocation of risks between parties

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law

14. General Provisions: Standard contractual terms including notices, amendments, and severability

Optional Sections

1. Non-Compete: Restrictions on competitive activities, used when contractor may have access to sensitive business information

2. Equipment and Resources: Provisions regarding tools and resources, used when specific equipment or facilities are provided

3. Training Requirements: Specific training or certification requirements, used in technical or specialized services

4. Performance Metrics: Detailed KPIs and measurement criteria, used in performance-based contracts

5. Security Requirements: IT security and physical security requirements, used when handling sensitive data or accessing secure facilities

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or high-value contracts

7. Warranties: Specific warranties for services or deliverables, used in technical or professional services

8. Succession Planning: Requirements for personnel replacement and knowledge transfer, used in key personnel-dependent services

Suggested Schedules

1. Schedule A - Scope of Work: Detailed technical specifications and requirements for the services

2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule C - Service Levels: Performance standards, metrics, and measurement methodologies

4. Schedule D - Key Personnel: List of key personnel and their qualifications

5. Schedule E - Compliance Requirements: Specific regulatory and compliance requirements applicable to the services

6. Appendix 1 - Required Forms: Standard forms for reporting, invoicing, and other administrative requirements

7. Appendix 2 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

8. Appendix 3 - Health and Safety Standards: Applicable health and safety requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
















































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Relevant Industries

Construction

Information Technology

Professional Services

Oil and Gas

Healthcare

Engineering

Manufacturing

Telecommunications

Real Estate Development

Education

Consulting

Project Management

Technical Services

Facilities Management

Relevant Teams

Legal

Procurement

Human Resources

Operations

Compliance

Risk Management

Finance

Project Management Office

Business Development

Contracts Administration

Relevant Roles

Legal Counsel

Procurement Manager

Contract Manager

Project Manager

HR Director

Operations Manager

Compliance Officer

Risk Manager

Business Development Manager

Finance Manager

Technical Director

Department Head

General Manager

Chief Operating Officer

Managing Director

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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