The Sub Contract Work Agreement is essential for projects in Saudi Arabia where a main contractor needs to delegate specific portions of work to specialized subcontractors. This document is particularly crucial in complex projects where expertise, resources, or regulatory compliance requirements necessitate the involvement of additional parties. The agreement ensures compliance with Saudi Arabian regulations, including Labor Law, Commercial Law, and Sharia principles, while protecting the interests of all parties involved. It typically includes detailed specifications about scope, quality standards, timeline, payment terms, and risk allocation. The document is designed to align with the main contract requirements while establishing clear responsibilities and liabilities between the main contractor and subcontractor, incorporating local business practices and regulatory requirements such as Saudization quotas and ZATCA compliance.
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1. Parties: Identification of the Main Contractor and Subcontractor with full legal details
2. Background: Context of the main contract and the need for subcontracting
3. Definitions and Interpretation: Key terms used in the agreement and rules for interpretation
4. Scope of Work: Detailed description of the subcontracted works to be performed
5. Contract Price and Payment Terms: Amount payable, payment schedule, and payment conditions
6. Duration and Timeline: Project schedule, milestones, and completion dates
7. Subcontractor's Obligations: Key responsibilities and duties of the subcontractor
8. Main Contractor's Obligations: Key responsibilities and duties of the main contractor
9. Quality and Standards: Required quality levels and applicable technical standards
10. Health, Safety and Environment: HSE requirements and compliance obligations
11. Warranties and Representations: Guarantees provided by both parties regarding capacity and performance
12. Insurance and Liability: Required insurance coverage and allocation of risks
13. Termination: Grounds and procedures for contract termination
14. Dispute Resolution: Procedures for resolving disputes including jurisdiction and applicable law
15. General Provisions: Standard contractual clauses including notices, amendments, and severability
1. Performance Security: Required when the project value exceeds certain thresholds or when specific performance guarantees are needed
2. Intellectual Property Rights: Needed when the subcontracted work involves creation or use of intellectual property
3. Confidentiality: Required when sensitive information will be shared during project execution
4. Force Majeure: Specific provisions for unforeseen circumstances, recommended for longer-term projects
5. Materials and Equipment: Required when the subcontractor is responsible for providing materials or equipment
6. Labor Requirements: Detailed section needed when significant workforce is involved, including Saudization requirements
7. Testing and Commissioning: Required for technical projects requiring specific testing procedures
8. Variations and Changes: Needed for complex projects where scope changes are likely
9. Site Access and Facilities: Required when work is to be performed at specific locations
10. Environmental Compliance: Required for projects with significant environmental impact
1. Schedule 1 - Scope of Works: Detailed technical specifications and requirements of the subcontracted work
2. Schedule 2 - Price Schedule: Detailed breakdown of prices, rates, and payment milestones
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and completion dates
4. Schedule 4 - Key Personnel: List of key personnel from both parties with roles and responsibilities
5. Schedule 5 - Required Insurances: Details of insurance types and coverage requirements
6. Schedule 6 - Forms and Procedures: Standard forms for notices, variations, and other procedures
7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements
8. Schedule 8 - Quality Assurance Plan: Quality standards, testing procedures, and acceptance criteria
9. Appendix A - Main Contract Excerpts: Relevant portions of the main contract affecting the subcontractor
10. Appendix B - Required Permits and Licenses: List of required regulatory approvals and permits
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