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Subcontractor Indemnification Agreement Template for England and Wales

A legally binding agreement governed by the laws of England and Wales that establishes the terms under which a subcontractor agrees to indemnify the main contractor against specified risks, losses, and liabilities arising from the subcontractor's work. The agreement defines the scope of indemnification, insurance requirements, and the respective obligations of both parties, while ensuring compliance with UK construction and contract law.

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What is a Subcontractor Indemnification Agreement?

The Subcontractor Indemnification Agreement is essential in projects where work is delegated to specialized subcontractors, particularly in construction, engineering, and professional services. This agreement, governed by English and Welsh law, protects the main contractor from potential losses or liabilities arising from the subcontractor's work. It typically includes specific indemnification obligations, insurance requirements, and risk allocation provisions, ensuring clear accountability and legal protection for all parties involved.

What sections should be included in a Subcontractor Indemnification Agreement?

1. Parties: Identifies the contracting parties and their registered details

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Indemnification: Details the specific risks and liabilities covered by the indemnity

5. Obligations of Parties: Outlines the duties and responsibilities of each party

6. Duration and Termination: Specifies the term of the agreement and termination provisions

7. Insurance Requirements: Specifies required insurance coverage and limits

8. Governing Law and Jurisdiction: Specifies that English and Welsh law governs the agreement and establishes jurisdiction

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

1. Intellectual Property Rights: Addresses IP ownership and licenses when the subcontractor's work involves creation of intellectual property

2. Confidentiality: Protects sensitive information exchanged between parties during the course of the agreement

3. Force Majeure: Addresses unforeseeable circumstances that may prevent parties from fulfilling their obligations

4. Data Protection: Includes provisions for compliance with UK GDPR and Data Protection Act 2018 when personal data is processed

5. Dispute Resolution: Sets out specific procedures for resolving disputes before resorting to litigation

What schedules should be included in a Subcontractor Indemnification Agreement?

1. Schedule 1 - Services: Detailed description of subcontractor's scope of work and deliverables

2. Schedule 2 - Insurance Requirements: Detailed insurance specifications including types of coverage and minimum coverage limits

3. Schedule 3 - Form of Indemnity: Standard form of indemnity to be used, including specific indemnification obligations

4. Schedule 4 - Parent Company Guarantee: Template form of parent company guarantee if required for additional security

5. Schedule 5 - Key Performance Indicators: Specific performance metrics and standards the subcontractor must meet

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use

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