The Consulting Subcontractor Agreement is essential for businesses operating in India that need to formalize consulting service arrangements through a subcontracting model. This document is particularly relevant when consulting firms need to augment their capacity or bring in specialized expertise while maintaining their primary relationship with the end client. The agreement ensures compliance with Indian legal requirements, including those related to independent contractor status, intellectual property protection, and tax obligations. It typically includes detailed provisions for service delivery, quality standards, confidentiality, and dispute resolution mechanisms. The document is structured to protect both parties' interests while facilitating smooth service delivery and maintaining regulatory compliance in the Indian business environment.
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1. Parties: Identification of the primary contractor and the subcontractor, including their registered addresses and company details
2. Background: Context of the agreement, including reference to the main contract with the end client if applicable
3. Definitions: Key terms used throughout the agreement, including Services, Deliverables, Intellectual Property Rights, Confidential Information
4. Appointment and Scope: Terms of appointment and detailed scope of consulting services to be provided
5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
6. Subcontractor's Obligations: Key responsibilities, service standards, compliance requirements, and performance expectations
7. Fees and Payment Terms: Compensation structure, payment schedule, expenses, and applicable taxes
8. Intellectual Property Rights: Ownership and transfer of IP created during the engagement
9. Confidentiality: Protection and handling of confidential information and trade secrets
10. Independent Contractor Status: Clear establishment of independent contractor relationship and not employer-employee
11. Indemnification: Mutual indemnification obligations and liability limitations
12. Insurance: Required insurance coverage to be maintained by the subcontractor
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
14. General Provisions: Standard boilerplate clauses including notices, amendment process, and severability
1. Non-Compete: Restrictions on working with competitors or clients - optional based on business sensitivity and jurisdiction enforceability
2. Data Protection: Specific provisions for handling personal data - required if personal data processing is involved
3. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID
4. Quality Assurance: Specific quality standards and testing requirements - needed for technical consulting
5. Training Requirements: Mandatory training or certification requirements - relevant for specialized consulting
6. Equipment and Resources: Provisions regarding tools and resources - relevant if specific equipment is required
7. Key Personnel: Identification of key team members - important for projects requiring specific expertise
8. Compliance with End-Client Requirements: Additional obligations flowing down from the end-client - relevant for multi-tier contracting
1. Schedule A - Scope of Services: Detailed description of consulting services, deliverables, and timelines
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, payment milestones, and expense policies
3. Schedule C - Service Levels: Performance metrics, quality standards, and reporting requirements
4. Schedule D - Compliance Requirements: Specific regulatory or industry compliance requirements
5. Appendix 1 - Required Insurance Coverage: Detailed insurance requirements including types and minimum coverage
6. Appendix 2 - Approved Subcontractor Personnel: List of approved personnel who may perform the services
7. Appendix 3 - Security Requirements: IT security, physical security, and data protection requirements
8. Appendix 4 - Form of Progress Report: Template for required progress or status reporting
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