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.
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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
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
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
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