Sub Contractor Agreement for New Zealand

Sub Contractor Agreement Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes and regulates the relationship between a principal contractor and a subcontractor. This document outlines the terms and conditions of the subcontracting arrangement, including scope of services, payment terms, obligations of both parties, health and safety requirements, and other essential provisions compliant with New Zealand legislation such as the Health and Safety at Work Act 2015 and the Contract and Commercial Law Act 2017. The agreement provides clear distinctions between employment and contractor relationships while ensuring all necessary protections and obligations are properly documented.

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What is a Sub Contractor Agreement?

The Sub Contractor Agreement is essential for businesses and individuals in New Zealand who engage subcontractors to perform specific services or work. This document is designed to comply with New Zealand legislation, including the Health and Safety at Work Act 2015, Contract and Commercial Law Act 2017, and relevant tax regulations. It's particularly important for establishing clear boundaries between employment and contractor relationships, protecting intellectual property, ensuring proper insurance coverage, and defining project-specific requirements. The agreement should be used whenever engaging external contractors for projects or ongoing services, as it provides legal protection for both parties and clearly defines responsibilities, payment terms, and performance expectations. The document can be customized for various industries while maintaining compliance with New Zealand legal requirements.

What sections should be included in a Sub Contractor Agreement?

1. Parties: Identification of the principal contractor and subcontractor, including full legal names and business details

2. Background: Context of the agreement, nature of the principal's business, and basis for engaging the subcontractor

3. Definitions: Defined terms used throughout the agreement

4. Appointment and Status: Confirmation of engagement as independent contractor and not an employee

5. Services: Overview of services to be provided by the subcontractor

6. Term: Duration of the agreement, including start date and termination provisions

7. Payment Terms: Fees, invoicing process, payment timeframes, and GST requirements

8. Obligations of the Subcontractor: Key responsibilities, quality standards, and performance requirements

9. Obligations of the Principal: Principal's responsibilities including provision of information and resources

10. Health and Safety: Health and safety requirements and responsibilities under NZ law

11. Insurance and Liability: Required insurance coverage and limitation of liability provisions

12. Confidentiality: Protection of confidential information and trade secrets

13. Intellectual Property: Ownership and usage rights of IP created during the engagement

14. Termination: Grounds for termination and consequences

15. General Provisions: Standard clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Sub Contractor Agreement?

1. Non-Compete: Restrictions on working with competitors, used when subcontractor has access to sensitive information

2. Equipment and Tools: Provisions regarding supply and maintenance of equipment, relevant when specific tools are required

3. Key Performance Indicators: Specific performance metrics, used for longer-term or complex engagements

4. Warranties: Specific warranties regarding qualifications or capabilities, important for regulated industries

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID

6. Assignment and Subcontracting: Rights to assign or further subcontract, important for larger projects

7. Data Protection: Additional privacy and data handling requirements, necessary when dealing with personal data

8. Environmental Compliance: Environmental obligations, relevant for construction or industrial services

What schedules should be included in a Sub Contractor Agreement?

1. Schedule 1 - Services Description: Detailed scope of services, deliverables, and specifications

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Key Personnel: Details of key people involved in providing the services

4. Schedule 4 - Performance Standards: Specific quality standards and performance criteria

5. Schedule 5 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

6. Appendix A - Health and Safety Requirements: Specific health and safety procedures and requirements

7. Appendix B - Reporting Requirements: Templates and requirements for progress reporting

8. Appendix C - Required Certifications: List of required certifications or qualifications

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

New Zealand

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Information Technology

Professional Services

Engineering

Manufacturing

Consulting

Healthcare

Education

Transport and Logistics

Mining and Resources

Agriculture

Creative Industries

Property Services

Telecommunications

Relevant Teams

Legal

Procurement

Operations

Human Resources

Finance

Project Management Office

Risk and Compliance

Facilities Management

Contract Administration

Business Development

Relevant Roles

Project Manager

Operations Manager

Procurement Manager

Contract Administrator

Legal Counsel

Human Resources Manager

Business Development Manager

Construction Manager

IT Manager

Finance Manager

Site Supervisor

Department Head

Chief Operating Officer

Facilities Manager

Program Director

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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