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Nominated Selected Subcontract Agreement

Nominated Selected Subcontract Agreement Template for South Africa

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Key Requirements PROMPT example:

Nominated Selected Subcontract Agreement

"I need a Nominated Selected Subcontract Agreement for a specialized electrical installation subcontractor on a large data center project in Johannesburg, with work commencing March 2025, including provisions for performance security and strict testing requirements."

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Document background
The Nominated Selected Subcontract Agreement is a crucial document in South African construction projects where specialized work packages require separate contracting arrangements. This agreement type is specifically used when the employer has either selected or approved a particular subcontractor for specialized works, creating a three-way relationship between the employer, main contractor, and subcontractor. The document establishes the legal framework for this relationship, incorporating requirements from South African construction law, CIDB regulations, and industry standards. It includes detailed provisions for scope, payment, performance standards, and dispute resolution, while ensuring alignment with the main contract terms. The agreement is particularly important for managing risk allocation, protecting all parties' interests, and ensuring clear communication channels and responsibilities. Key features include back-to-back provisions with the main contract, specific payment security mechanisms, and compliance with local regulatory requirements including B-BBEE and health and safety regulations.
Suggested Sections

1. Parties: Identification of the Main Contractor and Nominated Subcontractor, including registration details and addresses

2. Background: Context of the main contract, nomination process, and project overview

3. Definitions and Interpretation: Defined terms, rules of interpretation, and hierarchy of documents

4. Appointment and Scope: Formal appointment of subcontractor and detailed scope of subcontract works

5. Main Contract Obligations: Back-to-back obligations from main contract and subcontractor's acknowledgment

6. Contract Documents: List and hierarchy of contract documents, including drawings and specifications

7. Subcontractor's Obligations: General and specific obligations, including quality, workmanship, and compliance requirements

8. Time and Programme: Commencement, completion dates, programme requirements, and delay provisions

9. Contract Price and Payment: Price, payment terms, variations, and payment security provisions

10. Design Responsibilities: Extent of design obligations and approval processes

11. Materials and Workmanship: Quality requirements, testing, and inspection provisions

12. Health and Safety: Safety obligations, compliance with regulations, and reporting requirements

13. Insurance and Indemnities: Required insurance coverage and indemnification provisions

14. Default and Termination: Events of default, termination rights, and consequences

15. Dispute Resolution: Dispute resolution procedures, including mediation and arbitration

16. General Provisions: Standard boilerplate clauses including notices, governing law, etc

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used when additional security is required

2. Professional Team: Provisions regarding professional team appointments and responsibilities, used when design obligations are included

3. Environmental Requirements: Specific environmental obligations, used for projects with significant environmental impact

4. Local Content Requirements: Local content and B-BBEE requirements, used when specific transformation goals apply

5. Intellectual Property: IP rights and obligations, used when design or innovative methods are involved

6. Parent Company Guarantee: Requirements for parent company support, used when subcontractor's financial strength is a concern

7. Advance Payment: Terms for advance payment and recovery, used when advance funding is required

8. Limited Liability: Specific liability caps and exclusions, used for high-risk specialized work

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed description of subcontract works including specifications

2. Schedule 2 - Contract Price and Payment Terms: Detailed pricing, payment mechanics, and milestones

3. Schedule 3 - Programme: Detailed programme requirements and key dates

4. Schedule 4 - Site Information: Site details, access requirements, and restrictions

5. Schedule 5 - Quality Requirements: Quality management system and testing requirements

6. Schedule 6 - Health and Safety Requirements: Detailed safety requirements and procedures

7. Schedule 7 - Forms of Security: Forms of bonds, guarantees, and warranties

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and minimum coverage

9. Schedule 9 - Main Contract Extracts: Relevant extracts from main contract affecting subcontract

10. Schedule 10 - Technical Submittals: Required technical submissions and approval process

11. Appendix A - Drawings: List and copies of relevant drawings

12. Appendix B - Specifications: Technical specifications for subcontract works

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions





































































Clauses
















































Relevant Industries

Construction

Engineering

Infrastructure Development

Mining

Commercial Property

Industrial Development

Renewable Energy

Oil and Gas

Transportation

Healthcare Infrastructure

Educational Facilities

Retail Development

Residential Development

Public Works

Relevant Teams

Legal

Commercial

Construction

Procurement

Operations

Project Management

Risk and Compliance

Finance

Technical

Health and Safety

Contract Administration

Business Development

Relevant Roles

Contract Manager

Project Director

Construction Manager

Commercial Manager

Legal Counsel

Quantity Surveyor

Project Manager

Site Manager

Procurement Manager

Risk Manager

Operations Director

Technical Director

Chief Executive Officer

Financial Director

Compliance Officer

Health and Safety Manager

Construction Director

Bid 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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