This Subcontractor Contract is essential for projects where a main contractor needs to delegate specific portions of work to specialized subcontractors in Saudi Arabia. The document is structured to comply with Saudi Arabian law, including the Saudi Labor Law, Commercial Courts Law, and Sharia principles, while incorporating industry best practices. It is particularly crucial for complex projects where clear delineation of responsibilities, risk allocation, and performance standards is required. The contract addresses key elements such as scope definition, payment mechanisms, quality standards, and dispute resolution procedures, while ensuring compliance with local content requirements and Saudization policies. This template is designed to protect both parties' interests while maintaining alignment with the main contract obligations and project objectives.
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1. Parties: Identification of the main contractor and subcontractor, including their full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the main contract, project overview, and basis for the subcontracting relationship
3. Definitions: Detailed definitions of terms used throughout the agreement, including project-specific terminology
4. Scope of Works: Detailed description of the works to be performed by the subcontractor, including specifications and standards
5. Contract Price and Payment Terms: Pricing structure, payment schedule, invoicing requirements, and VAT provisions
6. Duration and Timeline: Project schedule, milestones, completion dates, and any liquidated damages for delay
7. Obligations of the Subcontractor: Key responsibilities, quality standards, reporting requirements, and compliance with laws
8. Main Contractor's Rights and Obligations: Responsibilities of the main contractor, including site access, information provision, and coordination
9. Materials and Equipment: Provisions regarding procurement, quality, storage, and responsibility for materials
10. Health, Safety and Environment: HSE requirements, compliance with local regulations, and safety protocols
11. Workforce Requirements: Labor law compliance, Saudization requirements, work permits, and workforce management
12. Quality Control: Quality assurance procedures, inspections, and acceptance criteria
13. Variations: Process for handling changes to scope, pricing, or timeline
14. Indemnification and Liability: Risk allocation, insurance requirements, and limitation of liability provisions
15. Termination: Grounds for termination, notice requirements, and consequences
16. Dispute Resolution: Process for resolving disputes, including Saudi law requirements for jurisdiction
17. Governing Law: Confirmation of Saudi law application and Sharia compliance
1. Performance Security: Requirements for performance bonds or guarantees, used for high-value contracts
2. Intellectual Property Rights: IP ownership and licenses, relevant for technical or design-related subcontracts
3. Confidentiality: Non-disclosure provisions, needed for sensitive projects
4. Force Majeure: Provisions for unforeseen events, particularly relevant for long-term projects
5. Step-in Rights: Main contractor's right to take over subcontractor's scope, used for critical project components
6. Export Control: Compliance with international trade regulations, relevant for contracts with foreign elements
7. Language: Specification of prevailing language, needed for international contracts
8. Anti-corruption: Compliance with anti-bribery laws, important for international or government-related projects
1. Schedule 1 - Detailed Scope of Works: Technical specifications, drawings, and detailed work requirements
2. Schedule 2 - Bill of Quantities: Detailed breakdown of quantities and rates
3. Schedule 3 - Project Timeline: Detailed project schedule, milestones, and completion dates
4. Schedule 4 - Payment Schedule: Detailed payment terms, milestone payments, and retention provisions
5. Schedule 5 - Key Personnel: List of key staff and their qualifications
6. Schedule 6 - Required Insurances: Details of insurance types and coverage requirements
7. Schedule 7 - Forms and Procedures: Standard forms for variations, progress reports, and other project documentation
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Appendix A - Main Contract Excerpts: Relevant portions of the main contract that apply to the subcontractor
10. Appendix B - Technical Standards: Applicable technical standards and specifications
Relevant legal definitions
Clauses
Relevant Industries
Construction
Engineering
Oil & Gas
Infrastructure
Real Estate Development
Manufacturing
Technology
Telecommunications
Defense
Energy
Mining
Transportation
Relevant Teams
Legal
Procurement
Commercial
Operations
Project Management
Risk & Compliance
Finance
Engineering
Quality Assurance
Health & Safety
Technical Services
Relevant Roles
Project Manager
Contract Manager
Legal Counsel
Commercial Manager
Procurement Manager
Construction Manager
Operations Director
Technical Director
Risk Manager
Compliance Officer
Chief Financial Officer
Site Supervisor
Quality Control Manager
HSE Manager
Engineering Manager
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