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Consulting Subcontractor Agreement for Malaysia

Consulting Subcontractor Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions under which a subcontractor provides consulting services on behalf of a main contractor. The document incorporates key provisions compliant with Malaysian legislation, including the Contracts Act 1950 and relevant employment laws, while addressing crucial aspects such as scope of services, compensation, intellectual property rights, confidentiality, and liability limitations. It is structured to protect both parties' interests while ensuring clarity in the delivery of consulting services within the Malaysian business environment.

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What is a Consulting Subcontractor Agreement?

The Consulting Subcontractor Agreement is essential for businesses operating in Malaysia that engage external consultants through a primary consulting firm. This document is particularly relevant when a main contractor needs to supplement their consulting capacity or bring in specialized expertise while maintaining their primary relationship with the end client. The agreement ensures compliance with Malaysian legal requirements, including the Contracts Act 1950, Employment Act 1955, and Personal Data Protection Act 2010. It covers crucial elements such as service scope, payment terms, confidentiality, intellectual property rights, and liability provisions, while clearly establishing the independent contractor relationship to avoid misclassification under Malaysian employment law.

What sections should be included in a Consulting Subcontractor Agreement?

1. Parties: Identification of the main contractor and subcontractor, including full legal names and registration details

2. Background: Context of the agreement, relationship between parties, and basic premise of the subcontracting arrangement

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of consulting services to be provided

5. Term and Termination: Duration of agreement and circumstances for termination

6. Fees and Payment: Compensation structure, payment terms, and invoicing requirements

7. Obligations of Subcontractor: Key responsibilities and performance standards

8. Obligations of Main Contractor: Support, resources, and information to be provided

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property: Ownership and rights to work product and pre-existing IP

11. Warranties and Representations: Standard warranties about capacity and capability to perform

12. Limitation of Liability: Caps on liability and exclusions

13. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

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

1. Non-Compete: Restrictions on competing activities - include when protecting market position is crucial

2. Insurance: Insurance requirements - include for high-risk consulting work

3. Data Protection: Specific PDPA compliance obligations - include when personal data processing is involved

4. Force Majeure: Provisions for unforeseen circumstances - important in long-term or critical service arrangements

5. Assignment and Subcontracting: Rights to transfer or further subcontract - include when flexibility might be needed

6. Dispute Resolution: Specific dispute resolution procedures - include for high-value or complex arrangements

7. Change Control: Process for managing changes to services - include for complex or evolving projects

8. Compliance with Laws: Specific regulatory compliance requirements - include for regulated industries

What schedules should be included in a Consulting Subcontractor Agreement?

1. Schedule 1 - Services Description: Detailed specification of consulting services to be provided

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

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Key Personnel: List of key individuals involved in service delivery

5. Appendix A - Project Timeline: Detailed project phases and deadlines

6. Appendix B - Required Documentation: List of deliverables and required documentation

7. Appendix C - Compliance Requirements: Specific regulatory or industry compliance requirements

8. Appendix D - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

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 | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions


























Clauses






























Relevant Industries

Information Technology

Management Consulting

Financial Services

Healthcare

Engineering

Construction

Education

Telecommunications

Energy

Manufacturing

Professional Services

Real Estate

Environmental Services

Relevant Teams

Legal

Procurement

Human Resources

Finance

Operations

Risk & Compliance

Project Management Office

Professional Services

Business Development

Contract Administration

Relevant Roles

Procurement Manager

Legal Counsel

Contract Manager

Project Manager

HR Director

Chief Financial Officer

Operations Director

Risk Manager

Compliance Officer

Business Development Manager

Managing Partner

Consulting Director

Professional Services 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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