Subcontractor To Subcontractor Agreement for Nigeria

Subcontractor To Subcontractor Agreement Template for Nigeria

This document is a legally binding agreement between two subcontractors operating under Nigerian law, where one subcontractor (the primary subcontractor) engages another subcontractor (the secondary subcontractor) to perform specific portions of work that the primary subcontractor has been contracted to deliver under a main contract. The agreement incorporates Nigerian legal requirements, including labor laws, local content requirements, and industry-specific regulations. It details the scope of work, payment terms, performance standards, and compliance requirements while establishing clear lines of responsibility and risk allocation between the parties.

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What is a Subcontractor To Subcontractor Agreement?

The Subcontractor To Subcontractor Agreement is essential in complex project structures where work needs to be further delegated to specialized service providers. This document is particularly relevant in the Nigerian business environment where projects often involve multiple tiers of contractors and must comply with local content requirements. The agreement is used when a primary subcontractor needs to engage another subcontractor to perform specific portions of their contracted work, ensuring all parties understand their roles, responsibilities, and obligations. It includes provisions for scope of work, payment terms, performance standards, and compliance with Nigerian regulations, while maintaining alignment with the main contract requirements. This type of agreement is crucial for maintaining clear contractual relationships and ensuring proper risk allocation in multi-tiered project structures.

What sections should be included in a Subcontractor To Subcontractor Agreement?

1. Parties: Identification of both subcontractors, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including reference to the main contract and the relationship between the parties

3. Definitions: Key terms used throughout the agreement, including specific industry terminology and contract-specific definitions

4. Scope of Work: Detailed description of the services or works to be performed by the second-tier subcontractor

5. Duration and Timeline: Contract period, key milestones, and delivery schedules

6. Payment Terms: Pricing, payment schedule, invoicing requirements, and payment conditions

7. Performance Standards: Quality requirements, specifications, and performance metrics

8. Health and Safety Requirements: Safety protocols, compliance with regulations, and HSE responsibilities

9. Personnel: Requirements for workforce, qualifications, and key personnel

10. Obligations of the Parties: Specific responsibilities and duties of each party

11. Warranties and Representations: Guarantees provided by each party regarding their capacity and ability to perform

12. Insurance and Indemnities: Required insurance coverage and indemnification obligations

13. Termination: Grounds for termination, notice requirements, and consequences

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

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

1. Local Content Requirements: Section detailing compliance with Nigerian Content Development requirements - include when working in regulated sectors like oil and gas

2. Equipment and Materials: Section specifying responsibility for provision and maintenance of equipment - include when physical assets are involved

3. Intellectual Property Rights: Section addressing ownership and use of IP - include when work involves creation of intellectual property

4. Confidentiality: Detailed confidentiality obligations - include when sensitive information will be shared

5. Force Majeure: Provisions for unforeseen circumstances - recommended for longer-term contracts

6. Environmental Compliance: Environmental protection requirements - include for projects with environmental impact

7. Security Requirements: Security protocols and requirements - include for high-risk locations or sensitive work

8. Training and Knowledge Transfer: Requirements for training local personnel - include when required by local content laws or project specifications

What schedules should be included in a Subcontractor To Subcontractor Agreement?

1. Schedule 1 - Scope of Work: Detailed technical specifications and requirements for the work to be performed

2. Schedule 2 - Pricing and Payment Schedule: Detailed breakdown of prices, rates, and payment milestones

3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and delivery dates

4. Schedule 4 - Key Personnel: List of key personnel with roles and qualifications

5. Schedule 5 - Required Insurance Coverage: Detailed insurance requirements and minimum coverage amounts

6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements

7. Appendix A - Forms and Templates: Standard forms for progress reports, invoicing, and other administrative documents

8. Appendix B - Performance Standards: Detailed quality standards and performance metrics

Authors

Alex Denne

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

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Oil and Gas

Infrastructure

Manufacturing

Technology

Telecommunications

Mining

Power and Energy

Maritime

Engineering Services

Relevant Teams

Legal

Procurement

Operations

Commercial

Compliance

Risk Management

Business Development

Technical

Supply Chain

Health Safety Environment

Relevant Roles

Contract Manager

Project Manager

Legal Counsel

Procurement Manager

Operations Director

Commercial Manager

Compliance Officer

Risk Manager

Business Development Manager

Technical Director

Supply Chain Manager

HSE Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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