The Master Sub Contract serves as a foundational document for businesses operating in the Philippines that regularly engage subcontractors for various services or projects. This contract type is particularly crucial in industries where work is frequently delegated to specialized service providers or where complex project structures require multiple layers of contractors. The agreement complies with Philippine legislation, including the Civil Code, Labor Code, and specific regulations on contracting and subcontracting. It typically includes provisions for work order issuance, service standards, payment mechanisms, and risk allocation, while ensuring compliance with local labor and business laws. The Master Sub Contract is designed to streamline the contracting process by establishing standard terms that apply to all subsequent work orders, reducing negotiation time and ensuring consistency in subcontracting relationships.
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1. Parties: Identification of the main contractor and subcontractor, including their legal names, registration details, and principal places of business
2. Background: Context of the agreement, relationship between parties, and general purpose of the master subcontract
3. Definitions: Defined terms used throughout the agreement for clarity and consistency
4. Scope of Services: General framework of services that may be subcontracted, including service categories and delivery requirements
5. Work Orders: Process for issuing, accepting, and executing specific work orders under the master agreement
6. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination
7. Payment Terms: General payment conditions, pricing mechanisms, invoicing requirements, and payment schedules
8. Performance Standards: Quality requirements, KPIs, and service level expectations
9. Subcontractor Obligations: Key responsibilities including compliance with laws, maintenance of licenses, and service delivery standards
10. Main Contractor Obligations: Responsibilities of the main contractor including provision of information and access
11. Warranties and Representations: Standard warranties regarding capacity, authority, and ability to perform
12. Confidentiality: Protection of confidential information and trade secrets
13. Intellectual Property: Ownership and usage rights of IP created during service delivery
14. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
15. Insurance: Required insurance coverage and minimum limits
16. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
17. General Provisions: Standard boilerplate clauses including notices, assignment, and amendment procedures
1. Labor and Employment Compliance: Detailed section on compliance with Philippine labor laws, used when subcontractor will employ significant workforce
2. Data Protection: Specific provisions for handling personal and sensitive data, required when services involve data processing
3. Environmental Compliance: Environmental protection obligations, necessary for projects with environmental impact
4. Health and Safety: Specific health and safety requirements, essential for high-risk or on-site services
5. Security Requirements: Detailed security protocols, necessary for services involving sensitive information or facilities
6. Change Control: Formal process for managing changes to services or terms, useful for complex or long-term arrangements
7. Force Majeure: Specific provisions for handling unforeseen events, particularly relevant in long-term or high-value contracts
8. Anti-Corruption: Detailed anti-corruption provisions, necessary for government-related work or high-value contracts
9. Transition Services: Procedures for service transition at start and end of contract, important for complex service arrangements
1. Schedule A - Service Categories: Detailed description of all potential service categories covered under the agreement
2. Schedule B - Rate Card: Standard rates and pricing mechanisms for different service categories
3. Schedule C - Service Levels: Detailed service level requirements and measurement criteria
4. Schedule D - Work Order Template: Standard template for individual work orders under the master agreement
5. Schedule E - Key Personnel: List of key personnel from both parties and their roles
6. Schedule F - Compliance Requirements: Detailed regulatory and compliance requirements applicable to the services
7. Schedule G - Insurance Requirements: Specific insurance types and coverage limits required
8. Appendix 1 - Technical Requirements: Technical specifications and standards for service delivery
9. Appendix 2 - Security Protocols: Detailed security procedures and requirements
10. Appendix 3 - Reporting Templates: Standard templates for required service reports and documentation
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