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Prime Subcontractor Agreement

Prime Subcontractor Agreement Template for Philippines

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Key Requirements PROMPT example:

Prime Subcontractor Agreement

"I need a Prime Subcontractor Agreement for a renewable energy project in Manila, where we'll be subcontracting the solar panel installation work starting March 2025, with specific focus on local content requirements and environmental compliance."

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Document background
The Prime Subcontractor Agreement is a crucial document used in the Philippine construction and infrastructure industry when a primary contractor needs to delegate specific project components to specialized subcontractors. This agreement type is essential for complex projects requiring specialized expertise or additional workforce capacity. The document must comply with Philippine laws, including the Civil Code, CIAP regulations, and Department Order No. 174-17 governing contracting relationships. It typically includes detailed specifications of work scope, payment terms, performance standards, and compliance requirements. The agreement is particularly important in ensuring clear delineation of responsibilities, risk allocation, and maintaining quality control throughout the project execution phase. Users should ensure the agreement aligns with both the main contract requirements and local regulatory framework.
Suggested Sections

1. Parties: Identifies the prime contractor and subcontractor with their complete legal names, addresses, and registration details

2. Background: Describes the main contract, project context, and the prime contractor's authority to subcontract

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes rules for interpreting the contract

4. Scope of Work: Detailed description of the subcontractor's responsibilities, deliverables, and work specifications

5. Contract Price and Payment Terms: Specifies the contract value, payment schedule, invoicing requirements, and payment conditions

6. Timeline and Project Schedule: Sets out project milestones, completion dates, and delivery schedules

7. Performance Standards: Establishes quality requirements, workmanship standards, and acceptance criteria

8. Warranties and Representations: Details warranties regarding work quality, compliance with laws, and capacity to perform

9. Health, Safety and Environment: Outlines safety requirements, environmental compliance, and related responsibilities

10. Insurance and Bonds: Specifies required insurance coverage and performance bonds

11. Indemnification: Details mutual indemnification obligations and liability limitations

12. Termination: Describes grounds and procedures for contract termination

13. Dispute Resolution: Establishes procedures for resolving disputes, including mediation and arbitration

14. General Provisions: Contains standard contractual clauses including notices, amendments, and governing law

Optional Sections

1. Intellectual Property Rights: Include when the work involves creation or use of intellectual property

2. Confidentiality: Include when sensitive information will be shared during project execution

3. Force Majeure: Include for projects with significant external risk factors

4. Security Requirements: Include for projects involving sensitive locations or information

5. Local Content Requirements: Include when project must meet specific local content quotas

6. Currency and Exchange Rate Provisions: Include for projects involving international payments

7. Equipment and Materials Supply: Include when subcontractor is responsible for providing significant equipment or materials

8. Quality Control and Testing: Include for projects requiring specific quality control procedures

9. Training and Knowledge Transfer: Include when subcontractor must provide training to prime contractor's personnel

Suggested Schedules

1. Schedule A - Scope of Work: Detailed technical specifications and work breakdown structure

2. Schedule B - Bill of Quantities: Itemized list of work items with quantities and rates

3. Schedule C - Payment Schedule: Detailed payment terms, milestones, and conditions

4. Schedule D - Project Timeline: Detailed project schedule with milestones and deadlines

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

6. Schedule F - Required Insurance: Detailed insurance requirements and coverage limits

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

8. Schedule H - Forms and Templates: Standard forms for progress reports, change orders, and other project documents

9. Schedule I - Performance Standards: Detailed quality standards and acceptance criteria

10. Appendix 1 - Main Contract Excerpts: Relevant portions of the main contract affecting subcontractor's work

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
Agreement
Applicable Laws
Approved
As-Built Documents
Change Order
CIAP
Commencement Date
Completion Certificate
Confidential Information
Contract Documents
Contract Price
Day
Defects
Deliverables
Force Majeure Event
Good Industry Practice
Governing Law
HSE Requirements
Intellectual Property Rights
Main Contract
Material Breach
Milestone
Notice
Payment Schedule
Performance Bond
Performance Standards
Project
Project Manager
Project Owner
Project Schedule
Project Site
Quality Control Plan
Retention Money
Schedule of Rates
Scope of Work
Site Rules
Specifications
Subcontract Works
Substantial Completion
Technical Documentation
Termination Date
Time for Completion
Variation
Warranty Period
Work Products
Working Day
Clauses
Interpretation
Appointment
Scope of Work
Contract Price
Payment Terms
Project Timeline
Performance Standards
Quality Control
Health and Safety
Environmental Protection
Labor and Employment
Materials and Equipment
Site Access
Testing and Inspection
Documentation
Warranties
Insurance
Bonds and Securities
Intellectual Property
Confidentiality
Data Protection
Indemnification
Limitation of Liability
Force Majeure
Suspension
Termination
Dispute Resolution
Assignment and Subcontracting
Notices
Governing Law
Compliance with Laws
Anti-corruption
Change Management
Records and Audits
Progress Reporting
Variations
Defects Liability
Performance Security
Relief Events
Cooperation
Entire Agreement
Relevant Industries

Construction

Infrastructure Development

Energy

Manufacturing

Mining

Telecommunications

Real Estate Development

Industrial Projects

Transportation

Public Works

Oil and Gas

Renewable Energy

Heavy Engineering

Relevant Teams

Legal

Procurement

Operations

Project Management

Risk Management

Commercial

Finance

Compliance

Quality Assurance

Health and Safety

Engineering

Construction Management

Relevant Roles

Project Manager

Contract Manager

Legal Counsel

Procurement Manager

Construction Manager

Operations Director

Risk Manager

Commercial Manager

Chief Operating Officer

Project Engineer

Compliance Officer

Quality Assurance Manager

Health and Safety Manager

Finance Director

Site Supervisor

Industries
Civil Code of the Philippines (Republic Act No. 386): Provides the basic framework for contracts, including formation, validity, interpretation, and remedies for breach
Construction Industry Authority of the Philippines (CIAP) Law (Executive Order No. 1008): Governs construction contracts and provides guidelines for contractor-subcontractor relationships in the construction industry
Department Order No. 174-17: Implements regulations on contracting and subcontracting arrangements, including rules on legitimate contracting and prohibited labor-only contracting
Contractor's License Law (RA 4566): Regulates licensing requirements for contractors and subcontractors operating in the Philippines
National Internal Revenue Code: Governs taxation aspects of contractor-subcontractor relationships, including VAT, withholding tax, and other tax obligations
Government Procurement Reform Act (RA 9184): Provides guidelines for procurement and subcontracting in government projects, including anti-corruption measures
Alternative Dispute Resolution Act (RA 9285): Provides framework for resolving disputes through arbitration, mediation, and other alternative dispute resolution methods
Philippine Competition Act (RA 10667): Ensures fair competition and prevents anti-competitive practices in business relationships, including subcontracting arrangements
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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