Consulting Subcontractor Agreement Template for Philippines

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Key Requirements PROMPT example:

Consulting Subcontractor Agreement

"I need a Consulting Subcontractor Agreement for engaging a cybersecurity specialist through our primary IT consulting firm in Manila, with strict data protection provisions and the ability to access client systems starting March 2025."

Document background
The Consulting Subcontractor Agreement is essential for businesses operating in the Philippines that need to engage specialized consultants through a primary contractor. This arrangement is common in various industries where expertise needs to be sourced through established consulting firms. The document complies with Philippine legal requirements, including the Civil Code, Labor Code, and relevant DOLE regulations. It carefully establishes an independent contractor relationship while providing comprehensive terms for service delivery, payment, intellectual property rights, and confidentiality. The agreement is particularly important in the Philippine context where proper documentation of contractor relationships is crucial to avoid misclassification under labor laws. It serves both domestic and international businesses engaging in consulting arrangements within the Philippine jurisdiction.
Suggested Sections

1. Parties: Identifies the principal contractor and the subcontractor, including their complete legal names, addresses, and business registration details

2. Background: Explains the context of the agreement, including the principal contractor's main contract and the need for subcontracted services

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Scope of Services: Details the specific consulting services to be provided by the subcontractor

5. Term and Termination: Specifies the duration of the agreement and circumstances under which it can be terminated

6. Compensation and Payment Terms: Outlines fees, payment schedule, expenses, and invoicing requirements

7. Independent Contractor Relationship: Clearly establishes the nature of the relationship and disclaims any employer-employee relationship

8. Obligations of the Subcontractor: Lists the subcontractor's duties, responsibilities, and performance standards

9. Obligations of the Principal Contractor: Specifies what the principal contractor must provide or do to enable the subcontractor's work

10. Intellectual Property Rights: Addresses ownership and usage rights of work product and pre-existing IP

11. Confidentiality: Protects confidential information shared during the engagement

12. Representations and Warranties: States the assurances made by each party regarding their capacity and capabilities

13. Limitation of Liability: Sets boundaries on the parties' liability for various types of losses or damages

14. Insurance and Indemnification: Specifies required insurance coverage and indemnification obligations

15. General Provisions: Includes standard legal provisions such as governing law, notices, and amendments

Optional Sections

1. Non-Competition: Restricts the subcontractor from competing with the principal contractor; include when there's significant business risk

2. Data Protection: Include when the services involve processing personal data or sensitive information

3. Force Majeure: Add when there's significant risk of external events disrupting service delivery

4. Anti-Corruption Compliance: Include when dealing with government projects or high-risk sectors

5. Performance Metrics: Add when specific performance standards or KPIs need to be met

6. Training and Support: Include when the principal contractor needs to provide specific training or resources

7. Dispute Resolution: Add detailed arbitration or mediation procedures when preferred over court litigation

8. Assignment and Subcontracting: Include when there's a need to specifically control further subcontracting or assignment rights

Suggested Schedules

1. Schedule A - Services Description: Detailed description of the consulting services, deliverables, and timelines

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

3. Schedule C - Service Levels: Specific performance metrics, quality standards, and response times

4. Schedule D - Required Insurance: Detailed insurance requirements including types of coverage and minimum amounts

5. Schedule E - Key Personnel: Lists key personnel assigned to the project and their qualifications

6. Appendix 1 - Compliance Requirements: Specific regulatory or client compliance requirements that must be followed

7. Appendix 2 - Security Requirements: IT, physical, or data security requirements if applicable to the services

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Management Consulting

Professional Services

Engineering

Construction

Healthcare

Financial Services

Telecommunications

Business Process Outsourcing

Education and Training

Environmental Services

Manufacturing

Energy and Utilities

Relevant Teams

Legal

Procurement

Operations

Human Resources

Finance

Compliance

Risk Management

Vendor Management

Project Management Office

Business Development

Commercial Operations

Administration

Relevant Roles

Procurement Manager

Legal Counsel

Contract Administrator

Project Manager

Operations Director

Human Resources Manager

Compliance Officer

Finance Manager

Business Development Manager

Risk Manager

Vendor Management Specialist

Chief Operating Officer

Program Director

Technical Lead

Resource Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Governs general contract formation, validity, obligations, and remedies. Particularly relevant are Book IV on Obligations and Contracts, which sets out requirements for valid contracts, consent, object, and consideration.
Labor Code of the Philippines (Presidential Decree No. 442): While primarily focused on employer-employee relationships, certain provisions may apply to independent contractors to prevent misclassification of workers and ensure proper contracting arrangements.
National Internal Revenue Code (NIRC): Covers tax obligations for independent contractors, including income tax, percentage tax, and VAT requirements. Relevant for payment terms and tax withholding provisions.
Intellectual Property Code (Republic Act No. 8293): Protects intellectual property rights and is crucial for provisions regarding ownership of work product, patents, copyrights, and trade secrets developed during the consulting engagement.
Data Privacy Act of 2012 (Republic Act No. 10173): Regulates the processing of personal information. Relevant if the consulting work involves handling personal or sensitive personal information.
Anti-Graft and Corrupt Practices Act (Republic Act No. 3019): Important for including anti-corruption clauses, especially when dealing with government-related projects or public sector clients.
E-Commerce Act (Republic Act No. 8792): Relevant if the agreement includes electronic signatures or electronic documents, recognizing their legal validity in commercial transactions.
Department of Labor and Employment (DOLE) Department Order No. 174-17: Provides guidelines on contracting and subcontracting arrangements, helping distinguish legitimate contracting from labor-only contracting.
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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