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Trucking Subcontractor Agreement Template for India

This document is a comprehensive legal agreement governed by Indian law that establishes the terms and conditions between a main contractor and a trucking subcontractor for transportation services. It covers essential aspects including operational requirements, safety standards, payment terms, and regulatory compliance under Indian transportation laws. The agreement incorporates specific provisions aligned with the Motor Vehicles Act 1988, the Carriage by Road Act 2007, and other relevant Indian legislation, while addressing liability, insurance requirements, and dispute resolution mechanisms specific to the Indian jurisdiction.

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What is a Trucking Subcontractor Agreement?

The Trucking Subcontractor Agreement is essential for businesses in India that need to expand their transportation capabilities through third-party service providers. This document is typically used when a company (main contractor) wants to engage independent trucking operators or transportation companies (subcontractors) to handle their logistics needs while maintaining service standards and regulatory compliance. The agreement is structured to comply with Indian transportation and contract laws, including the Motor Vehicles Act 1988 and the Carriage by Road Act 2007. It includes detailed provisions for operational requirements, safety standards, insurance requirements, payment terms, and dispute resolution mechanisms, while addressing specific Indian regulatory requirements and business practices in the transportation sector.

What sections should be included in a Trucking Subcontractor Agreement?

1. Parties: Identification of the main contractor and subcontractor with full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of transportation services to be provided by the subcontractor

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Payment Terms: Rates, payment schedule, invoicing requirements, and payment methods

7. Operational Requirements: Daily operational procedures, dispatch protocols, and service standards

8. Vehicle Requirements: Specifications for vehicles, maintenance standards, and inspection requirements

9. Driver Requirements: Qualification requirements, licensing, training, and conduct standards for drivers

10. Safety and Compliance: Safety protocols, regulatory compliance requirements, and reporting procedures

11. Insurance Requirements: Mandatory insurance coverage types and minimum coverage amounts

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Termination: Grounds for termination, notice requirements, and post-termination obligations

14. Dispute Resolution: Procedures for resolving disputes between parties

15. Governing Law: Applicable law and jurisdiction

What sections are optional to include in a Trucking Subcontractor Agreement?

1. Non-Compete Clause: Restrictions on subcontractor's ability to work directly with main contractor's clients

2. Fuel Surcharge Provisions: Terms for adjusting rates based on fuel price fluctuations

3. Technology Integration: Requirements for using specific tracking, routing, or management software

4. Environmental Compliance: Additional environmental standards and green initiatives

5. Performance Metrics: Specific KPIs and performance evaluation criteria

6. Force Majeure: Provisions for handling unforeseen circumstances and events beyond reasonable control

7. Confidentiality: Terms for handling sensitive business information

8. Assignment Rights: Terms governing the ability to transfer or assign the agreement to other parties

What schedules should be included in a Trucking Subcontractor Agreement?

1. Schedule A - Rate Card: Detailed breakdown of rates for different routes, vehicle types, and service categories

2. Schedule B - Service Level Requirements: Specific performance standards, delivery timeframes, and quality metrics

3. Schedule C - Vehicle Specifications: Detailed technical requirements for vehicles, including age limits and equipment specifications

4. Schedule D - Insurance Requirements: Detailed insurance requirements including types, amounts, and specific coverage terms

5. Schedule E - Operating Procedures: Detailed operational protocols, including loading/unloading procedures and documentation requirements

6. Appendix 1 - Required Documents: List of mandatory documents for vehicles and drivers

7. Appendix 2 - Contact Information: Key contact details for both parties including emergency contacts

8. Appendix 3 - Compliance Checklist: Checklist of regulatory and operational compliance requirements

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Genie AI

Cost

Free to use

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