The Master Sub Agreement is designed for businesses operating in Nigeria that regularly engage subcontractors for various projects or services. This contract type is particularly useful when a company anticipates multiple engagements with various subcontractors over time and wants to establish standardized terms and conditions. The agreement complies with Nigerian law and includes provisions for local content requirements, tax compliance, and other jurisdiction-specific regulations. It contains mechanisms for work order issuance, performance monitoring, payment structures, and dispute resolution, while maintaining flexibility to accommodate different types of services or projects. The document serves as an umbrella agreement under which specific work orders can be issued, saving time and ensuring consistency in subcontractor relationships while managing legal and operational risks effectively.
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1. Parties: Identification of the main contractor and the subcontractor, including full legal names, registration details, and addresses
2. Background: Context of the agreement, business relationship, and general intent of the parties
3. Definitions: Detailed definitions of terms used throughout the agreement to ensure clarity and consistent interpretation
4. Scope of Agreement: Overall framework of the master agreement and its application to future work orders or specific subcontracts
5. Appointment and Term: Terms of appointment of the subcontractor and duration of the master agreement
6. Work Orders: Process for issuing, accepting, and executing specific work orders under the master agreement
7. Subcontractor Obligations: Core responsibilities and performance standards expected from the subcontractor
8. Main Contractor Obligations: Responsibilities of the main contractor, including payment terms and support provisions
9. Pricing and Payment: Framework for determining prices, payment terms, invoicing procedures, and payment disputes
10. Performance Standards: Quality standards, KPIs, and performance monitoring mechanisms
11. Compliance and Regulations: Requirements for compliance with laws, regulations, and industry standards
12. Insurance and Liability: Insurance requirements and allocation of risks and liabilities between parties
13. Intellectual Property: Rights and obligations regarding IP created or used during the performance of services
14. Confidentiality: Protection of confidential information and trade secrets
15. Termination: Grounds and procedures for termination, including consequences and post-termination obligations
16. Dispute Resolution: Procedures for resolving disputes, including mediation, arbitration, or litigation
17. General Provisions: Standard boilerplate clauses including notices, assignment, amendments, and governing law
1. Health and Safety: Specific health and safety requirements, recommended for construction or industrial services
2. Environmental Compliance: Environmental protection measures, necessary for environmentally sensitive operations
3. Security Requirements: Special security measures, important for contracts involving sensitive information or facilities
4. Local Content: Requirements for local content and Nigerian participation, relevant for contracts in regulated sectors
5. Training and Knowledge Transfer: Provisions for training local staff, relevant when building local capacity is important
6. Force Majeure: Detailed force majeure provisions, recommended for long-term or high-value contracts
7. Step-In Rights: Rights to take over subcontractor's scope, important for critical services or infrastructure projects
8. Technology Transfer: Provisions for technology transfer, relevant for technical or specialized services
9. Anti-Corruption: Enhanced anti-corruption provisions, recommended for public sector-related work
1. Schedule 1 - Pricing Schedule: Detailed pricing structure, rates, and cost calculation methodologies
2. Schedule 2 - Service Levels: Detailed performance metrics, KPIs, and measurement criteria
3. Schedule 3 - Form of Work Order: Template for individual work orders to be issued under the master agreement
4. Schedule 4 - Insurance Requirements: Detailed insurance types, coverage amounts, and specific requirements
5. Schedule 5 - Technical Standards: Specific technical standards and specifications applicable to the services
6. Schedule 6 - Key Personnel: List of key personnel and their roles from both parties
7. Schedule 7 - Approved Subcontractors: List of pre-approved sub-subcontractors if applicable
8. Appendix A - HSE Requirements: Detailed health, safety, and environmental requirements and procedures
9. Appendix B - Reporting Requirements: Templates and procedures for regular reporting and performance monitoring
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