Document background
The Master Subcontract Agreement is designed for use in the Saudi Arabian market where businesses need to establish long-term subcontracting relationships with service providers or contractors. This agreement type is particularly relevant when a company expects to engage a subcontractor for multiple projects or ongoing services and wants to avoid negotiating individual contracts for each engagement. The Master Subcontract Agreement creates an efficient framework that complies with Saudi laws and regulations, including Sharia principles, labor laws, and commercial regulations. It typically includes provisions for work orders, payment terms, performance standards, and dispute resolution mechanisms, while addressing specific Saudi requirements such as Saudization, local content requirements, and regulatory compliance. The agreement serves as the primary governing document for all subsequent work orders and provides clarity on roles, responsibilities, and risk allocation between the main contractor and subcontractor.
