The Subcontractor Agreement For Services is a critical document used when a main contractor needs to delegate specific project work or services to another entity while maintaining overall responsibility to the end client. This agreement is particularly important in the Philippine business context, where subcontracting relationships must comply with strict labor laws and regulatory requirements, including Department Order No. 174-17 on contracting and subcontracting. The document establishes clear lines of responsibility, performance standards, and payment terms while ensuring compliance with Philippine tax laws, social security requirements, and industry-specific regulations. It is commonly used in projects requiring specialized expertise, additional workforce capacity, or specific technical capabilities that the main contractor wishes to source externally.
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1. Parties: Identification of the main contractor and subcontractor, including complete legal names, addresses, and registration details
2. Background: Context of the agreement, including reference to the main contract and basis for subcontracting
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided by the subcontractor
5. Term and Timeline: Duration of the agreement and key milestone dates
6. Payment Terms: Compensation, payment schedule, invoicing requirements, and tax considerations
7. Performance Standards: Quality standards, KPIs, and acceptance criteria for the services
8. Obligations of the Subcontractor: Key responsibilities, compliance requirements, and performance commitments
9. Obligations of the Main Contractor: Support, access, and resources to be provided by the main contractor
10. Personnel: Requirements for subcontractor's personnel, including qualifications and supervision
11. Compliance with Laws: Obligation to comply with Philippine laws, including labor and social security requirements
12. Confidentiality: Protection of confidential information and trade secrets
13. Intellectual Property: Ownership and rights to work products and pre-existing IP
14. Liability and Indemnification: Allocation of risks and responsibilities between parties
15. Insurance: Required insurance coverage and minimum limits
16. Termination: Grounds for termination, notice requirements, and consequences
17. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue
18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Foreign Ownership Compliance: Required when the subcontractor has foreign ownership, addressing Anti-Dummy Law compliance
2. Data Protection: Required when personal data processing is involved, ensuring compliance with the Data Privacy Act
3. Export Control: Required for services involving international elements or technology transfer
4. Force Majeure: Optional but recommended section defining force majeure events and consequences
5. Non-Competition: Optional restrictions on competitive activities, if relevant to the industry
6. Environmental Compliance: Required for services with environmental impact or in regulated industries
7. Health and Safety: Required for services performed on-site or involving physical work
8. Security Requirements: Required when dealing with sensitive information or accessing secure facilities
1. Schedule A - Scope of Services: Detailed description of services, deliverables, and technical specifications
2. Schedule B - Payment Schedule: Detailed breakdown of fees, payment milestones, and rate cards
3. Schedule C - Service Levels: Specific performance metrics, KPIs, and measurement criteria
4. Schedule D - Key Personnel: List of key personnel and their qualifications
5. Schedule E - Required Insurance: Specific insurance requirements and coverage limits
6. Schedule F - Compliance Requirements: Specific regulatory and compliance requirements applicable to the services
7. Appendix 1 - Form of Invoice: Template for invoices meeting Philippine tax requirements
8. Appendix 2 - Progress Report Template: Standard format for progress reporting
9. Appendix 3 - Security Protocols: Detailed security procedures and requirements if applicable
Relevant legal definitions
Clauses
Relevant Industries
Construction
Information Technology
Business Process Outsourcing
Manufacturing
Engineering
Professional Services
Telecommunications
Infrastructure Development
Energy
Mining
Real Estate Development
Healthcare Services
Transportation and Logistics
Maritime Services
Agricultural Services
Relevant Teams
Legal
Procurement
Operations
Supply Chain
Compliance
Risk Management
Commercial
Business Development
Human Resources
Finance
Project Management
Vendor Management
Relevant Roles
Procurement Manager
Contract Administrator
Legal Counsel
Project Manager
Operations Director
Supply Chain Manager
Compliance Officer
Risk Manager
Commercial Director
Business Development Manager
Chief Operating Officer
Vendor Management Specialist
Human Resources Director
Finance Manager
Technical Director
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