Subcontractor To Subcontractor Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Subcontractor To Subcontractor Agreement

"I need a Subcontractor to Subcontractor Agreement for a construction project in Riyadh, where we'll be delegating specialized electrical installation works starting March 2025, with particular emphasis on local content requirements and safety standards for high-voltage systems."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Relevant legal definitions
Clauses
Relevant Industries

Construction

Engineering

Oil & Gas

Infrastructure

Real Estate Development

Manufacturing

Technology

Telecommunications

Energy

Industrial Projects

Mining

Transportation

Relevant Teams

Legal

Procurement

Operations

Commercial

Project Management

Risk & Compliance

Health Safety & Environment

Quality Assurance

Technical

Finance

Contract Administration

Relevant Roles

Contract Manager

Project Manager

Legal Counsel

Commercial Manager

Procurement Manager

Operations Director

Construction Manager

Site Supervisor

Risk Manager

Compliance Officer

Technical Director

Chief Operating Officer

Project Control Manager

Quality Assurance Manager

HSE Manager

Industries
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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