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Subcontractor Agreement For Services
"I need a Subcontractor Agreement For Services governed by Saudi law for an IT services provider who will be handling our cloud infrastructure maintenance and cybersecurity operations, with specific provisions for data protection and confidentiality, starting March 2025."
1. Parties: Identification of the main contractor and subcontractor, including their full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement, reference to the main contract, and general purpose of the subcontracting arrangement
3. Definitions: Key terms used throughout the agreement, including specific Saudi legal and technical terms
4. Scope of Services: Detailed description of the services to be provided by the subcontractor, including deliverables and performance standards
5. Term and Timeline: Duration of the agreement, key milestone dates, and any extension provisions
6. Payment Terms: Compensation structure, payment schedule, invoicing requirements, and currency specifications compliant with Saudi law
7. Obligations of the Subcontractor: Key responsibilities, compliance requirements, reporting obligations, and performance standards
8. Obligations of the Main Contractor: Support, access, and information to be provided by the main contractor
9. Compliance with Laws: Specific reference to Saudi laws, regulations, and Shari'ah principles that must be adhered to
10. Personnel: Requirements for staff, Saudization requirements, work permits, and labor law compliance
11. Confidentiality: Protection of confidential information and trade secrets
12. Intellectual Property: Ownership and usage rights of IP created during the service provision
13. Liability and Indemnification: Risk allocation, limitation of liability, and indemnification obligations
14. Insurance: Required insurance coverage in accordance with Saudi law
15. Termination: Grounds for termination, notice requirements, and consequences of termination
16. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts or arbitration centers
17. General Provisions: Standard boilerplate clauses adapted to Saudi law requirements
1. Performance Bond: Required when the project value exceeds certain thresholds or when dealing with government contracts
2. Parent Company Guarantee: Included when the subcontractor is a subsidiary and additional financial security is required
3. Health and Safety: Detailed section required for high-risk services or construction-related activities
4. Environmental Compliance: Required for services with potential environmental impact
5. Quality Assurance: Detailed quality requirements for technical or specialized services
6. Security Requirements: For services involving sensitive information or access to secure facilities
7. Force Majeure: Detailed provisions for unforeseen circumstances, particularly relevant in long-term or high-value contracts
8. Technology Transfer: Required when the service involves transfer of technical knowledge or technology
9. Zakat and Tax: Detailed tax provisions when significant tax implications exist
1. Schedule 1 - Scope of Services: Detailed technical specifications and service requirements
2. Schedule 2 - Pricing and Payment Schedule: Detailed breakdown of fees, payment milestones, and pricing mechanisms
3. Schedule 3 - Performance Standards: Key performance indicators and service level requirements
4. Schedule 4 - Required Personnel: Key personnel requirements, qualifications, and Saudization targets
5. Schedule 5 - Equipment and Materials: List of equipment and materials to be provided by each party
6. Schedule 6 - Form of Performance Bond: Template for performance bond if required
7. Schedule 7 - Required Insurance: Detailed insurance requirements and minimum coverage levels
8. Schedule 8 - Project Timeline: Detailed project schedule and milestones
9. Appendix A - Main Contract Excerpts: Relevant portions of the main contract that affect subcontractor obligations
10. Appendix B - Required Forms and Reports: Templates for progress reports, invoices, and other required documentation
Authors
Construction
Information Technology
Oil & Gas
Manufacturing
Professional Services
Telecommunications
Engineering
Facilities Management
Healthcare
Education
Defense
Infrastructure
Mining
Transportation
Logistics
Legal
Procurement
Operations
Commercial
Risk & Compliance
Finance
Project Management
Supply Chain
Human Resources
Technical Services
Contract Manager
Legal Counsel
Procurement Manager
Project Manager
Commercial Director
Operations Manager
Risk Manager
Compliance Officer
Finance Manager
Technical Director
Business Development Manager
General Counsel
Supply Chain Manager
Chief Operating Officer
HR Director
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