Subcontractor Framework Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Subcontractor Framework Agreement

"I need a Subcontractor Framework Agreement for our UAE construction company that will be used with multiple MEP subcontractors starting from January 2025, with specific provisions for performance bonds and quality control requirements for high-rise building projects."

Document background

The Subcontractor Framework Agreement is designed for businesses operating in the UAE who require a structured approach to managing multiple subcontracting arrangements under a single agreement. This document type is particularly relevant in scenarios where a main contractor anticipates regular engagement of subcontractors for various projects or services, eliminating the need to negotiate individual contracts for each engagement. The agreement must comply with UAE Federal Laws, including UAE Labor Law, Commercial Transactions Law, and relevant emirate-specific regulations. It typically includes provisions for work order procedures, pricing mechanisms, quality standards, HSE requirements, and dispute resolution methods specific to UAE jurisdiction. The framework nature of the agreement allows for flexibility while maintaining consistent terms and standards across multiple work orders, making it an efficient tool for managing subcontractor relationships in the UAE market.

Suggested Sections

1. Parties: Identification of the Contractor and Subcontractor, including full legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the framework

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Agreement: Framework terms, types of work covered, and geographical scope of operations

5. Appointment and Term: Terms of appointment, duration, and renewal provisions

6. Work Order Process: Procedures for issuing, accepting, and executing specific work orders under the framework

7. Subcontractor Obligations: Core responsibilities, performance standards, and compliance requirements

8. Contractor Obligations: Main contractor's responsibilities, including provision of information and access

9. Personnel and Labor Requirements: Requirements for workforce, qualifications, and compliance with UAE labor laws

10. Payment Terms: Pricing mechanism, payment procedures, invoicing requirements, and payment timelines

11. Quality and Standards: Required quality standards, inspections, and acceptance criteria

12. Health and Safety: HSE requirements and compliance with UAE safety regulations

13. Insurance and Liability: Required insurance coverage and allocation of risks and liabilities

14. Confidentiality: Protection of confidential information and trade secrets

15. Termination: Grounds for termination, termination procedures, and consequences

16. Governing Law and Dispute Resolution: UAE law as governing law and dispute resolution mechanisms

Optional Sections

1. Environmental Compliance: Required for projects with significant environmental impact or in environmentally sensitive areas

2. Intellectual Property Rights: Necessary when work involves creation or use of intellectual property

3. Performance Security: Include when bank guarantees or performance bonds are required

4. Force Majeure: Detailed force majeure provisions for high-risk or long-term arrangements

5. Anti-corruption and Compliance: Enhanced compliance provisions for government-related projects or international work

6. Technology and Data Protection: Required when dealing with digital services or personal data processing

7. Local Content Requirements: Include for projects subject to UAE local content requirements

8. Step-in Rights: Required for critical projects where contractor may need to take over subcontractor's scope

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed description of services and work categories covered under the framework

2. Schedule 2 - Rate Card: Agreed rates, prices, and pricing mechanisms for different types of work

3. Schedule 3 - KPIs and Performance Standards: Detailed performance metrics and measurement criteria

4. Schedule 4 - Form of Work Order: Template for individual work orders to be issued under the framework

5. Schedule 5 - Required Insurances: Detailed insurance requirements and minimum coverage levels

6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements and procedures

7. Schedule 7 - Required Personnel and Qualifications: List of key personnel roles and required qualifications

8. Schedule 8 - Forms and Templates: Standard forms for reports, invoices, and other routine documentation

9. Appendix A - Technical Standards: Applicable technical standards and specifications

10. Appendix B - Quality Assurance Requirements: Detailed quality control and assurance procedures

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Engineering

Oil & Gas

Infrastructure

Technology

Facilities Management

Manufacturing

Real Estate Development

Energy

Telecommunications

Relevant Teams

Legal

Procurement

Commercial

Operations

Supply Chain

Risk & Compliance

Project Management

Technical

Health Safety & Environment

Finance

Business Development

Relevant Roles

Commercial Director

Procurement Manager

Legal Counsel

Contract Manager

Project Manager

Operations Director

Supply Chain Manager

Risk Manager

Compliance Officer

Technical Director

Construction Manager

Chief Operating Officer

Business Development Manager

HSE Manager

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