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Master Sub Contract

Master Sub Contract Template for Philippines

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Key Requirements PROMPT example:

Master Sub Contract

"I need a Master Sub Contract for my IT services company in Manila, starting March 2025, that will cover software development and maintenance services, with strong data protection clauses and the ability to issue work orders for different projects as needed."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Affiliate
Applicable Law
Background IP
Business Day
Change Order
Confidential Information
Contract Price
Defect
Deliverables
Effective Date
Force Majeure Event
Good Industry Practice
Intellectual Property Rights
Key Personnel
Main Contract
Material Breach
Notice
Payment Terms
Performance Standards
Project
Project Site
Quality Standards
Representatives
Schedule of Rates
Scope of Services
Service Levels
Services
Specifications
Subcontract Works
Term
Third Party
Work Order
Working Hours
Variation
VAT
Warranty Period
Withholding Tax
Work Product
Workplace Safety Standards
Philippine Labor Laws
Legitimate Contracting
DOLE Regulations
Completion Certificate
Milestone
Performance Bond
Retention Amount
Site Access
Technical Requirements
Time for Completion
Clauses
Interpretation
Appointment
Term and Termination
Work Orders
Scope of Services
Performance Standards
Payment Terms
Invoicing
Subcontractor Obligations
Main Contractor Obligations
Compliance with Laws
Labor and Employment
Health and Safety
Quality Assurance
Reporting Requirements
Audit Rights
Warranties
Intellectual Property
Confidentiality
Data Protection
Insurance
Liability and Indemnification
Force Majeure
Change Control
Dispute Resolution
Governing Law
Assignment and Subcontracting
Notices
Anti-Corruption
Environmental Compliance
Security Requirements
Site Access
Materials and Equipment
Documentation
Training
Transition Services
Business Continuity
Records Retention
Publicity
Relationship of Parties
Severability
Entire Agreement
Amendments
Waiver
Third Party Rights
Counterparts
Relevant Industries

Construction

Information Technology

Manufacturing

Business Process Outsourcing

Engineering

Telecommunications

Infrastructure Development

Energy

Mining

Transportation and Logistics

Facilities Management

Professional Services

Relevant Teams

Legal

Procurement

Operations

Supply Chain

Compliance

Risk Management

Finance

Commercial

Human Resources

Project Management Office

Vendor Management

Business Development

Relevant Roles

Procurement Manager

Contract Manager

Legal Counsel

Project Manager

Operations Director

Supply Chain Manager

Vendor Relations Manager

Compliance Officer

Risk Manager

Chief Operating Officer

Commercial Director

Business Development Manager

Finance Director

General Counsel

Human Resources Director

Industries
Civil Code of the Philippines (Republic Act No. 386): Primary law governing contracts, obligations, and civil relationships in the Philippines. Provides fundamental rules on contract formation, validity, and enforcement.
Labor Code of the Philippines (Presidential Decree No. 442): Regulates employment relationships and labor standards, including provisions on legitimate contracting and subcontracting arrangements.
Department Order No. 174-17: Provides guidelines on contracting and subcontracting arrangements, including registration requirements and prohibited practices in contractual arrangements.
Republic Act No. 9178 (Barangay Micro Business Enterprises Act): Relevant if the subcontractor qualifies as a micro business, providing certain benefits and regulations for such enterprises.
National Internal Revenue Code: Governs taxation aspects of business relationships, including VAT obligations and withholding tax requirements in subcontracting arrangements.
Republic Act No. 9485 (Anti-Red Tape Act): Ensures efficient delivery of services in processing business permits and licenses related to subcontracting arrangements.
Data Privacy Act of 2012 (Republic Act No. 10173): Regulates the collection, processing, and handling of personal information in business relationships, including subcontracting arrangements.
Securities Regulation Code (Republic Act No. 8799): Relevant if the subcontracting arrangement involves regulated securities or investment activities.
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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