The Subcontractor To Subcontractor Agreement is essential in complex projects where work needs to be delegated through multiple tiers of contractors while maintaining quality and compliance standards. This document type is particularly relevant in Saudi Arabia's growing construction and infrastructure sectors, where large-scale projects often involve multiple specialized contractors. The agreement must comply with Saudi Arabian law and Shariah principles, incorporating specific requirements for commercial transactions, labor regulations, and industry standards. It includes detailed provisions for scope definition, payment structures, performance requirements, and risk allocation, while ensuring alignment with both the primary contract and local regulatory requirements. The document is crucial for establishing clear chains of responsibility and liability between subcontractors while maintaining transparency with the primary contractor and project owner.
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1. Parties: Identification of both subcontractors with full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement, including reference to the main contract and primary contractor relationship
3. Definitions: Key terms used throughout the agreement, including project-specific terminology
4. Scope of Work: Detailed description of the works to be performed, including specifications and standards
5. Contract Price and Payment Terms: Payment amount, schedule, milestones, and payment mechanisms
6. Duration and Timeline: Project schedule, completion dates, and milestones
7. Performance Obligations: Quality standards, workmanship requirements, and performance guarantees
8. Materials and Equipment: Responsibilities for supply, quality, and maintenance of materials and equipment
9. Health, Safety and Environment: HSE requirements and compliance obligations
10. Warranties and Defects Liability: Warranty periods, remedial works, and defect correction procedures
11. Insurance and Indemnities: Required insurance coverage and indemnification obligations
12. Termination: Grounds for termination, procedures, and consequences
13. Dispute Resolution: Dispute resolution mechanisms compliant with Saudi law
14. Governing Law: Confirmation of Saudi law and Shariah principles as governing law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Force Majeure: Include when specific force majeure events need to be addressed beyond standard provisions
2. Intellectual Property Rights: Include when work involves design, software, or other intellectual property
3. Confidentiality: Include when sensitive information will be shared between parties
4. Performance Security: Include when performance bonds or guarantees are required
5. Changes and Variations: Include when significant variations to scope are anticipated
6. Site Access and Conditions: Include for construction projects with specific site requirements
7. Quality Control and Testing: Include when specific quality control procedures are required
8. Liquidated Damages: Include when specific compensation for delays needs to be pre-agreed
9. Environmental Compliance: Include for projects with significant environmental impacts
10. Local Content Requirements: Include when specific Saudi localization requirements apply
1. Schedule 1 - Scope of Work: Detailed technical specifications and drawings
2. Schedule 2 - Bill of Quantities: Itemized pricing and quantities
3. Schedule 3 - Program of Works: Detailed project timeline and milestones
4. Schedule 4 - Payment Schedule: Detailed payment terms, milestones, and procedures
5. Schedule 5 - Key Personnel: List of key staff and their qualifications
6. Schedule 6 - Equipment Schedule: List of required equipment and specifications
7. Schedule 7 - Forms and Procedures: Standard forms for notices, variations, and approvals
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Schedule 9 - Quality Assurance Plan: Quality control procedures and standards
10. Appendix A - Insurance Requirements: Detailed insurance coverage requirements
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