Subcontractor Framework Agreement Template for Australia

The Subcontractor Framework Agreement is designed for businesses operating in Australia that regularly engage subcontractors for various projects or services. This agreement serves as a master services agreement, establishing the foundational terms and conditions that will govern all future work orders or service requests, thereby streamlining the procurement process and ensuring consistency in subcontractor engagements. It is particularly valuable for organizations managing multiple subcontractors or requiring flexible resource allocation across different projects. The agreement incorporates key requirements under Australian federal and state laws, including workplace health and safety obligations, fair contracting principles, and security of payment provisions. It is structured to accommodate various industry-specific requirements while maintaining compliance with relevant Australian legislation and regulations.

1. Parties: Identification of the principal contractor and subcontractor, including ABN/ACN and registered addresses

2. Background: Context of the agreement, nature of the principal contractor's business, and purpose of establishing a subcontractor framework

3. Definitions and Interpretation: Defined terms used throughout the agreement and rules for interpreting the agreement

4. Appointment and Scope: Terms of appointment, non-exclusive nature, and process for engaging the subcontractor for specific works

5. Work Orders: Process for issuing, accepting, and executing individual work orders under the framework

6. Subcontractor Obligations: Core responsibilities, quality standards, compliance requirements, and performance expectations

7. Principal Contractor Obligations: Responsibilities of the principal contractor including provision of information and access

8. Fees and Payment: Payment terms, invoicing requirements, and payment dispute resolution process

9. Insurance and Liability: Required insurance coverage, liability limitations, and indemnification obligations

10. Work Health and Safety: WHS obligations, compliance requirements, and incident reporting procedures

11. Confidentiality and Privacy: Protection of confidential information and personal data handling requirements

12. Intellectual Property: Ownership and usage rights of pre-existing and created IP

13. Term and Termination: Duration of the framework agreement, renewal provisions, and termination rights

14. Dispute Resolution: Process for resolving disputes, including escalation procedures

15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law