The Simple Subcontractor Agreement is a fundamental legal document used in Saudi Arabia when a main contractor wishes to delegate specific project work to a specialized subcontractor. This agreement type is particularly important in the Saudi market, where complex projects often require multiple specialized service providers and must comply with local content requirements. The document addresses key aspects including scope definition, payment terms, performance standards, and compliance with Saudi regulations and Shariah principles. It's designed to protect both parties' interests while ensuring alignment with the main contract obligations and local law requirements. The agreement is commonly used across various industries and can be adapted to different project sizes and complexities while maintaining its essential legal framework under Saudi jurisdiction.
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1. Parties: Identification of the main contractor and subcontractor, including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement, including reference to the main contract and basis for subcontracting
3. Definitions: Key terms used throughout the agreement, including project-specific terminology
4. Scope of Work: Detailed description of the services or works to be performed by the subcontractor
5. Duration and Timelines: Contract period, key milestones, and completion dates
6. Payment Terms: Compensation, payment schedule, invoicing requirements, and payment currency
7. Obligations of the Subcontractor: Key responsibilities, performance standards, and compliance requirements
8. Obligations of the Main Contractor: Main contractor's duties, including provision of information and materials
9. Quality Standards: Required quality levels, inspection procedures, and acceptance criteria
10. Compliance with Laws: Obligation to comply with Saudi laws, regulations, and Shariah principles
11. Confidentiality: Protection of confidential information and trade secrets
12. Termination: Grounds for termination, notice requirements, and consequences
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Insurance Requirements: Specific insurance coverage requirements - include when project involves significant risks or physical works
2. Performance Bond: Requirements for performance security - include for high-value contracts or when required by main contract
3. Health and Safety: HSE requirements - include for construction or industrial projects
4. Intellectual Property Rights: IP ownership and licenses - include when work involves creation of intellectual property
5. Force Majeure: Provisions for unforeseen circumstances - recommended for longer-term contracts
6. Saudization Requirements: Local workforce requirements - include when applicable to the specific sector
7. Environmental Compliance: Environmental protection measures - include for projects with environmental impact
8. Equipment and Materials: Provisions regarding supply and maintenance of equipment - include for construction/manufacturing work
1. Schedule 1 - Scope of Works: Detailed technical specifications and requirements for the subcontracted work
2. Schedule 2 - Pricing and Payment Schedule: Detailed breakdown of prices, rates, and payment milestones
3. Schedule 3 - Project Timeline: Detailed project schedule including milestones and deadlines
4. Schedule 4 - Key Personnel: List of key personnel from both parties responsible for project execution
5. Schedule 5 - Required Documents: List of permits, licenses, and certificates required for the work
6. Appendix A - Main Contract Excerpts: Relevant portions of the main contract that affect subcontractor's work
7. Appendix B - Technical Standards: Applicable technical standards and specifications
8. Appendix C - Forms and Ƶ: Standard forms for progress reports, invoices, and other regular submissions
Relevant legal definitions
Clauses
Relevant Industries
Construction
Oil & Gas
Information Technology
Manufacturing
Engineering
Facilities Management
Infrastructure
Telecommunications
Professional Services
Industrial Services
Real Estate Development
Mining
Defense
Healthcare
Relevant Teams
Legal
Procurement
Operations
Commercial
Finance
Compliance
Risk Management
Project Management
Technical
Supply Chain
Quality Assurance
Relevant Roles
Project Manager
Contract Manager
Legal Counsel
Procurement Manager
Operations Director
Commercial Manager
Technical Director
Finance Manager
Compliance Officer
Risk Manager
Business Development Manager
Project Engineer
Quality Assurance Manager
Supply Chain Manager
General Manager
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