The Subcontractor To Subcontractor Agreement is essential in complex project structures where work needs to be further delegated to specialized service providers. This document is particularly relevant in the Nigerian business environment where projects often involve multiple tiers of contractors and must comply with local content requirements. The agreement is used when a primary subcontractor needs to engage another subcontractor to perform specific portions of their contracted work, ensuring all parties understand their roles, responsibilities, and obligations. It includes provisions for scope of work, payment terms, performance standards, and compliance with Nigerian regulations, while maintaining alignment with the main contract requirements. This type of agreement is crucial for maintaining clear contractual relationships and ensuring proper risk allocation in multi-tiered project structures.
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1. Parties: Identification of both subcontractors, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, including reference to the main contract and the relationship between the parties
3. Definitions: Key terms used throughout the agreement, including specific industry terminology and contract-specific definitions
4. Scope of Work: Detailed description of the services or works to be performed by the second-tier subcontractor
5. Duration and Timeline: Contract period, key milestones, and delivery schedules
6. Payment Terms: Pricing, payment schedule, invoicing requirements, and payment conditions
7. Performance Standards: Quality requirements, specifications, and performance metrics
8. Health and Safety Requirements: Safety protocols, compliance with regulations, and HSE responsibilities
9. Personnel: Requirements for workforce, qualifications, and key personnel
10. Obligations of the Parties: Specific responsibilities and duties of each party
11. Warranties and Representations: Guarantees provided by each party regarding their capacity and ability to perform
12. Insurance and Indemnities: Required insurance coverage and indemnification obligations
13. Termination: Grounds for termination, notice requirements, and consequences
14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Local Content Requirements: Section detailing compliance with Nigerian Content Development requirements - include when working in regulated sectors like oil and gas
2. Equipment and Materials: Section specifying responsibility for provision and maintenance of equipment - include when physical assets are involved
3. Intellectual Property Rights: Section addressing ownership and use of IP - include when work involves creation of intellectual property
4. Confidentiality: Detailed confidentiality obligations - include when sensitive information will be shared
5. Force Majeure: Provisions for unforeseen circumstances - recommended for longer-term contracts
6. Environmental Compliance: Environmental protection requirements - include for projects with environmental impact
7. Security Requirements: Security protocols and requirements - include for high-risk locations or sensitive work
8. Training and Knowledge Transfer: Requirements for training local personnel - include when required by local content laws or project specifications
1. Schedule 1 - Scope of Work: Detailed technical specifications and requirements for the work to be performed
2. Schedule 2 - Pricing and Payment Schedule: Detailed breakdown of prices, rates, and payment milestones
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and delivery dates
4. Schedule 4 - Key Personnel: List of key personnel with roles and qualifications
5. Schedule 5 - Required Insurance Coverage: Detailed insurance requirements and minimum coverage amounts
6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements
7. Appendix A - Forms and Templates: Standard forms for progress reports, invoicing, and other administrative documents
8. Appendix B - Performance Standards: Detailed quality standards and performance metrics
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