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IT Subcontractor Agreement

IT Subcontractor Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

IT Subcontractor Agreement

"I need an IT Subcontractor Agreement for a Saudi-based software development project where we'll be engaging a specialized cybersecurity firm to provide penetration testing and security auditing services for a 12-month period starting March 2025, with strict data protection requirements and potential access to government systems."

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Document background
The IT Subcontractor Agreement is essential for businesses operating in Saudi Arabia that need to engage specialized IT service providers as subcontractors. This document is particularly relevant in the context of large-scale IT projects, digital transformation initiatives, and technology implementations where main contractors need to supplement their capabilities with specialized expertise. The agreement ensures compliance with Saudi Arabian regulations including the Anti-Cyber Crime Law, Data Protection Laws, and Labor Laws, while providing a clear framework for service delivery, quality standards, and risk management. It's designed to protect both parties' interests while facilitating efficient project execution and maintaining alignment with the main contract requirements. The document is structured to address both technical and commercial aspects of IT subcontracting, incorporating necessary provisions for intellectual property protection, data security, and performance monitoring.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, relationship to main contract, and project overview

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of IT services to be provided, deliverables, and performance standards

5. Term and Timelines: Duration of the agreement, key milestones, and delivery schedules

6. Payment Terms: Fees, payment schedule, invoicing requirements, and currency specifications

7. Subcontractor Obligations: Key responsibilities, service levels, reporting requirements, and compliance obligations

8. Main Contractor Obligations: Support, access, and resources to be provided by the main contractor

9. Data Protection and Security: Compliance with Saudi data protection laws, security protocols, and confidentiality requirements

10. Intellectual Property Rights: Ownership and licensing of IP, including pre-existing IP and newly created works

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties and Representations: Standard and specific warranties regarding services, compliance, and capabilities

13. Liability and Indemnification: Liability limitations, indemnification obligations, and insurance requirements

14. Termination: Termination rights, procedures, and consequences

15. Governing Law and Dispute Resolution: Saudi law application and dispute resolution procedures

16. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Foreign Worker Compliance: Required when subcontractor employs non-Saudi nationals, addressing visa requirements and Saudization rules

2. Export Control: Required when services involve cross-border technology transfer or data movement

3. Source Code Escrow: Optional section for critical software development projects requiring source code protection

4. Business Continuity: Required for critical IT services requiring disaster recovery and business continuity planning

5. Knowledge Transfer: Optional section for projects requiring transition of knowledge to main contractor's team

6. Non-Competition: Optional restrictions on subcontractor's ability to work with competitors

7. Performance Bonds: Required for high-value contracts or government-related projects

8. Islamic Finance Compliance: Required when payment structures need to comply with Islamic finance principles

Suggested Schedules

1. Schedule 1 - Services Description: Detailed technical specifications and scope of IT services

2. Schedule 2 - Service Levels: Specific performance metrics, KPIs, and measurement criteria

3. Schedule 3 - Pricing and Payment: Detailed fee structure, rates, and payment milestones

4. Schedule 4 - Project Timeline: Detailed project schedule, milestones, and deliverable dates

5. Schedule 5 - Security Requirements: Specific security protocols, standards, and compliance requirements

6. Schedule 6 - Personnel: Key personnel, qualifications, and replacement procedures

7. Schedule 7 - Technical Requirements: Hardware, software, and infrastructure specifications

8. Appendix A - Required Forms: Standard forms for reporting, change requests, and acceptance

9. Appendix B - Compliance Certificates: Copies of required certifications and compliance documents

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
Acceptance Criteria
Applicable Laws
Approved Personnel
Background IP
Business Day
Change Control Procedure
Confidential Information
Contract Period
Critical Service Levels
Cyber Security Requirements
Data Protection Laws
Deliverables
Documentation
End Client
Force Majeure Event
Foreground IP
Good Industry Practice
Implementation Plan
Intellectual Property Rights
Key Personnel
Main Contract
Main Contractor
Main Contractor Materials
Milestone
Personal Data
Project
Project Manager
Quality Standards
Related Agreements
Reports
Saudi Business Hours
Security Requirements
Service Credits
Service Levels
Services
Site
Source Code
Specifications
Subcontractor
Subcontractor Materials
System
Technical Requirements
Term
Third Party Materials
Time for Completion
Updates
Work Product
Clauses
Parties
Interpretation
Definitions
Service Provision
Term Duration
Payment Terms
Service Levels
Performance Standards
Acceptance Testing
Change Control
Personnel Requirements
Contractor Obligations
Client Obligations
Intellectual Property
Data Protection
Cyber Security
Confidentiality
Non-Competition
Non-Solicitation
Warranties
Indemnification
Limitation of Liability
Insurance
Force Majeure
Termination
Exit Management
Assignment and Subcontracting
Dispute Resolution
Governing Law
Notices
Entire Agreement
Severability
Third Party Rights
Compliance with Laws
Anti-Corruption
Audit Rights
Business Continuity
Documentation
Training
Quality Assurance
Risk Management
Reporting Requirements
Security Clearance
Access Rights
Knowledge Transfer
Environmental Compliance
Islamic Finance Compliance
Relevant Industries

Information Technology

Software Development

Cloud Services

Cybersecurity

Digital Transformation

Telecommunications

Financial Services Technology

Healthcare Technology

E-commerce

Government & Public Sector IT

Oil & Gas Technology

Manufacturing Technology

Educational Technology

Relevant Teams

Legal

Procurement

Information Technology

Vendor Management

Compliance

Risk Management

Operations

Project Management Office

Information Security

Technical Architecture

Service Delivery

Contract Administration

Relevant Roles

IT Project Manager

Procurement Manager

Legal Counsel

Contract Manager

Chief Technology Officer

IT Operations Director

Vendor Management Specialist

Compliance Officer

Technical Program Manager

Information Security Manager

Software Development Manager

Solutions Architect

Chief Information Officer

Risk Manager

IT Service Delivery Manager

Industries
Saudi Labor Law (Royal Decree No. M/51): Governs employment relationships, contractor classifications, working hours, and obligations between contracting parties in Saudi Arabia
Anti-Cyber Crime Law (Royal Decree No. M/17): Regulates cybersecurity requirements, unauthorized access prevention, and IT security standards that IT contractors must comply with
Electronic Transactions Law (Royal Decree No. M/18): Governs electronic transactions, digital signatures, and electronic records that may be relevant for IT services
Cloud Computing Regulatory Framework (CCRF): Regulates cloud computing services and data hosting requirements in Saudi Arabia
Personal Data Protection Law (PDPL): Outlines requirements for handling, processing, and protecting personal data in Saudi Arabia
Commercial Courts Law (Royal Decree No. M/93): Governs commercial disputes and contract enforcement in Saudi Arabia
Saudi Commercial Agencies Law: Relevant if the IT subcontractor acts as an agent or representative of foreign companies
Copyright Law (Royal Decree No. M/41): Protects intellectual property rights, particularly important for software development and IT solutions
Foreign Investment Law (Royal Decree No. M/1): Regulates foreign business activities and investments in Saudi Arabia, applicable if the contractor is a foreign entity
Value Added Tax (VAT) Law: Governs tax obligations for services provided within Saudi Arabia
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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