The Sub Vendor Agreement is a critical commercial document used when a primary contractor needs to engage another business to perform part of their contracted services or obligations. This agreement is particularly important in the Australian business environment where complex service delivery often requires specialized sub-contractors. The document ensures compliance with Australian federal and state laws, including fair trading, competition, and security of payment legislation. A Sub Vendor Agreement typically includes detailed provisions for service scope, performance standards, payment terms, risk allocation, and compliance requirements. It's designed to protect both parties while maintaining alignment with the primary contract's obligations and ensuring transparent business relationships in accordance with Australian commercial practice.
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1. Parties: Identification of the primary vendor and sub-vendor, including ABN/ACN and registered addresses
2. Background: Context of the agreement, relationship to head contract, and purpose of the sub-vendor arrangement
3. Definitions and Interpretation: Key terms used in the agreement and rules for interpretation
4. Appointment and Scope: Formal appointment of sub-vendor and detailed scope of services to be provided
5. Term and Extension: Duration of the agreement, including commencement date and extension options
6. Sub-Vendor Obligations: Key responsibilities, performance standards, and compliance requirements
7. Primary Vendor Obligations: Support, information, and resources to be provided by the primary vendor
8. Fees and Payment: Payment terms, rates, invoicing requirements, and payment schedules
9. Performance Management: KPIs, service levels, reporting requirements, and performance review process
10. Compliance and Audit: Regulatory compliance, audit rights, and record-keeping obligations
11. Personnel: Requirements for sub-vendor staff, qualifications, and security clearances
12. Confidentiality: Protection of confidential information and data security requirements
13. Insurance and Liability: Required insurance coverage and limitation of liability provisions
14. Termination: Termination rights, notice periods, and consequences of termination
15. Dispute Resolution: Process for resolving disputes, including escalation procedures
16. General Provisions: Standard boilerplate clauses including notices, governing law, and assignment
1. Intellectual Property Rights: Required when services involve creation or modification of intellectual property
2. Data Protection: Required when personal or sensitive data is processed as part of services
3. Equipment and Assets: Include when primary vendor provides equipment or assets to sub-vendor
4. Business Continuity: Required for critical services requiring disaster recovery planning
5. Export Control: Include for cross-border services or technology transfer
6. Transition Services: Required when complex service transition or exit planning is needed
7. Security Requirements: Include for services involving access to sensitive systems or facilities
8. Environmental Compliance: Required when services have environmental impact or risks
9. Modern Slavery Compliance: Include when supply chain involves risk of modern slavery
10. Local Content Requirements: Include when specific local content or indigenous participation is required
1. Schedule 1 - Services Description: Detailed description of services, deliverables, and technical requirements
2. Schedule 2 - Pricing and Payment: Detailed fee structure, rates, and payment terms
3. Schedule 3 - Service Levels: Specific KPIs, service levels, and measurement criteria
4. Schedule 4 - Governance: Meeting schedule, reporting requirements, and escalation contacts
5. Schedule 5 - Insurance Requirements: Specific insurance types and coverage levels required
6. Schedule 6 - Security Requirements: Detailed security protocols and compliance requirements
7. Appendix A - Form of Reports: Ƶ for required reporting
8. Appendix B - Key Personnel: List of key personnel and their roles
9. Appendix C - Approved Sub-contractors: List of any approved further sub-contractors
10. Appendix D - Compliance Certificates: Required compliance and qualification certificates
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