The Basic Simple Subcontractor Agreement is a fundamental legal document used in the Philippines when a main contractor wishes to delegate specific work or services to a subcontractor. This agreement is essential for businesses operating under Philippine jurisdiction that need to establish clear terms for subcontracted work while ensuring compliance with local regulations, particularly Department Order No. 174 and the Labor Code. The document is designed to protect both parties' interests by clearly defining scope, payments, and responsibilities, while incorporating necessary provisions for insurance, quality standards, and dispute resolution. It's particularly valuable for projects requiring specialized skills or additional workforce capacity, and can be adapted across various industries while maintaining compliance with Philippine subcontracting laws.
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1. Parties: Identification of the main contractor and subcontractor with complete legal names and addresses
2. Background: Context of the agreement and brief description of the main contract
3. Definitions: Key terms used throughout the agreement
4. Scope of Work: Detailed description of services or work to be performed by the subcontractor
5. Term: Duration of the agreement including start and end dates
6. Payment Terms: Compensation, payment schedule, and invoicing requirements
7. Obligations of the Subcontractor: Key responsibilities and duties of the subcontractor
8. Obligations of the Main Contractor: Key responsibilities and duties of the main contractor
9. Quality Standards: Required quality levels and standards for the work
10. Compliance with Laws: Requirement to comply with relevant Philippine laws and regulations
11. Insurance and Liability: Insurance requirements and allocation of risks
12. Termination: Conditions and process for ending the agreement
13. Confidentiality: Protection of confidential information
14. Dispute Resolution: Process for resolving disagreements
15. Governing Law: Specification of Philippine law as governing law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Health and Safety: Required for work involving physical labor or on-site activities
2. Equipment and Materials: Include when subcontractor is responsible for providing specific equipment or materials
3. Intellectual Property Rights: Necessary when work involves creation of intellectual property
4. Performance Bonds: Include when security for performance is required
5. Site Access and Security: Required for work performed at specific locations or facilities
6. Environmental Compliance: Include for work with potential environmental impact
7. Force Majeure: Optional clause for handling unforeseen circumstances
8. Non-Competition: Include when protecting business interests from competition is necessary
1. Schedule A - Scope of Work: Detailed breakdown of services and deliverables
2. Schedule B - Payment Schedule: Detailed payment terms, rates, and milestones
3. Schedule C - Timeline: Project schedule and key milestones
4. Schedule D - Technical Specifications: Specific technical requirements and standards
5. Schedule E - Key Personnel: List of key personnel assigned to the project
6. Appendix 1 - Insurance Requirements: Detailed insurance coverage requirements
7. Appendix 2 - Safety Procedures: Required safety protocols and procedures
8. Appendix 3 - Required Forms: Standard forms for reporting, invoicing, and other administrative matters
Relevant legal definitions
Clauses
Relevant Industries
Construction
Information Technology
Manufacturing
Engineering
Facilities Management
Professional Services
Logistics
Real Estate Development
Telecommunications
Industrial Services
Maintenance Services
Business Process Outsourcing
Relevant Teams
Legal
Procurement
Operations
Project Management
Commercial
Risk & Compliance
Business Development
Contracts Administration
Finance
Technical Operations
Relevant Roles
Project Manager
Procurement Manager
Operations Director
Contract Administrator
Legal Counsel
Business Development Manager
Construction Manager
Site Supervisor
Facilities Manager
Compliance Officer
Risk Manager
Commercial Director
Technical Director
Managing Director
Chief Operating Officer
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