The Consulting Subcontractor Agreement is essential for businesses operating in Malaysia that engage external consultants through a primary consulting firm. This document is particularly relevant when a main contractor needs to supplement their consulting capacity or bring in specialized expertise while maintaining their primary relationship with the end client. The agreement ensures compliance with Malaysian legal requirements, including the Contracts Act 1950, Employment Act 1955, and Personal Data Protection Act 2010. It covers crucial elements such as service scope, payment terms, confidentiality, intellectual property rights, and liability provisions, while clearly establishing the independent contractor relationship to avoid misclassification under Malaysian employment law.
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1. Parties: Identification of the main contractor and subcontractor, including full legal names and registration details
2. Background: Context of the agreement, relationship between parties, and basic premise of the subcontracting arrangement
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of consulting services to be provided
5. Term and Termination: Duration of agreement and circumstances for termination
6. Fees and Payment: Compensation structure, payment terms, and invoicing requirements
7. Obligations of Subcontractor: Key responsibilities and performance standards
8. Obligations of Main Contractor: Support, resources, and information to be provided
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property: Ownership and rights to work product and pre-existing IP
11. Warranties and Representations: Standard warranties about capacity and capability to perform
12. Limitation of Liability: Caps on liability and exclusions
13. General Provisions: Standard boilerplate clauses including governing law, notices, etc.
1. Non-Compete: Restrictions on competing activities - include when protecting market position is crucial
2. Insurance: Insurance requirements - include for high-risk consulting work
3. Data Protection: Specific PDPA compliance obligations - include when personal data processing is involved
4. Force Majeure: Provisions for unforeseen circumstances - important in long-term or critical service arrangements
5. Assignment and Subcontracting: Rights to transfer or further subcontract - include when flexibility might be needed
6. Dispute Resolution: Specific dispute resolution procedures - include for high-value or complex arrangements
7. Change Control: Process for managing changes to services - include for complex or evolving projects
8. Compliance with Laws: Specific regulatory compliance requirements - include for regulated industries
1. Schedule 1 - Services Description: Detailed specification of consulting services to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Key Personnel: List of key individuals involved in service delivery
5. Appendix A - Project Timeline: Detailed project phases and deadlines
6. Appendix B - Required Documentation: List of deliverables and required documentation
7. Appendix C - Compliance Requirements: Specific regulatory or industry compliance requirements
8. Appendix D - Insurance Requirements: Detailed insurance coverage requirements and minimum limits
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