Right to subcontract

The "Right to Subcontract" clause allows a party in a contract to delegate their obligations or tasks to a third-party subcontractor, subject to any limitations or conditions outlined in the agreement. This clause typically ensures that the original party remains responsible for the performance of their contractual duties, even if those duties are executed by the subcontractor.

14 Right to subcontract examples

  • Description
    Right to Subcontract Service Provider Functions. (a) Service Provider shall not have the right to subcontract any of its functions described herein unless first approved in writing by Master Tenant. If approved by Master Tenant, Service Provider shall notify Master Tenant at least twenty (20) days prior to the effective date of any such subcontract in the event some or all of Service Provider’s functions described herein are subcontracted to other parties. However, except as expressly provided herein, the fees to be paid to Service Provider under this Agreement are inclusive of fees payable to such third parties unless otherwise mutually agreed to by Master Tenant and Service Provider. (b) Master Tenant shall be explicitly named as a third party beneficiary of any agreement or contract pursuant to which any of Service Provider’s obligations and subcontracted to another person.
    Document
    Amphitrite Digital Inc
  • Description
    Right to Subcontract. Advisor shall the express right to subcontract the performance of these Services under this Agreement without the prior approval or consent of Company. The performance of Services by any Subcontractor shall not relieve either Party of any of its obligations under this Agreement.
    Document
    LGX Energy Corp.
  • Description
    The Developer has the right to subcontract all or part of the R&D Activities to third parties. When the Developer enters into a subcontracting agreement with a third party, the Developer shall obtain or claim the ownership of the Work Results and Intellectual Property Rights produced by the subcontracted third party, and such Work Results and Intellectual Property Rights shall be transferred/assigned to the Company in accordance with the R&D Agreement immediately after they are produced.
    Document
    Lotus Technology Inc. (LOT, LOTWW)
  • Description
    Subcontract. Institution has the right to subcontract to other sites to conduct the Study in accordance with the Protocol with terms consistent with this Agreement with written approval of the Sponsor, which approval shall not be unreasonably withheld. If Institution subcontracts any Study related duties, Institution shall contract with such subcontractors incorporating terms substantially similar to the terms herein. Such subcontracts may be provided to the Sponsor upon written request. The Sponsor has the right to subcontract to a third-party CRO or Academic Research Organization (ARO) and assign Study-related duties and rights to any Sponsor affiliate. If Sponsor subcontracts any Study-related duties and rights, Sponsor remains responsible for any of those duties and rights.
    Document
    GT Biopharma, Inc. (GTBP)
  • Description
    Manufacturing Rights. The Product License includes the right to subcontract and sublicense to a third party subcontractor working solely on behalf of Customer and to the extent necessary for Customer to exercise its rights under this Agreement, conditioned on said subcontractor entering into a confidentiality agreement containing terms which are no less restrictive than those contained in the applicable confidentiality agreement between Customer and Astra.
    Document
    Astra Space, Inc.
  • Description
    Regeneron Right to Subcontract Regeneron, at its own cost and discretion, shall have the right to subcontract any work performed under this Agreement to Third Parties in the Territory without the prior approval of Roche, except that Regeneron shall not have the right to subcontract manufacture of Drug Substance to CMOs or other Third Parties in the Territory without the prior approval of Roche; provided that Regeneron may subcontract manufacture of Drug Substance to CMOs in the Territory up to the Minimum Committed Regeneron Capacity without the prior approval of Roche. Unless otherwise agreed by the Parties, any grant of rights by Regeneron to a CMO or Third Party under the rights granted to Roche Basel pursuant to Section 2.1(i) shall be considered a “subcontract” for purposes of restrictions under this Section 2.6, regardless of the structure of such arrangement with the CMO or Third Party. Each permitted subcontract shall be consistent in all material respects with the terms and conditions of this Agreement and Regeneron shall ensure that all of the applicable terms and conditions of this Agreement shall apply to the applicable subcontractor to the same extent as they apply to Regeneron for all purposes. Regeneron assumes full responsibility for the performance of all obligations and observance of all terms so imposed on such subcontractor and shall itself account to Roche for all payments due under this Agreement by reason of such subcontract.
    Document
    REGENERON PHARMACEUTICALS, INC. (REGN)
  • Description
    Bioarkive shall have the right to subcontract or delegate any portion of the Services hereunder to third parties (“Subcontractors”) only with Client’s prior written consent; provided, that no consent shall be necessary for Bioarkive’s delegation to or use of Subcontractors that are set forth in the relevant Project Proposal as performing such Services. In any event, Bioarkive shall remain solely and fully liable for the performance of such Subcontractors to which it delegates the performance of its obligations under this Agreement. Bioarkive shall ensure that each of its Subcontractors performs Bioarkive’s obligations pursuant to the terms of this Agreement. For clarity, to the extent Bioarkive has an obligation under this Agreement to perform an action or to meet a standard, and Bioarkive subcontracts such obligation, Bioarkive shall be responsible for any failure by its Subcontractor to perform the action or meet the standard.
    Document
    Immuneering Corp (IMRX)
  • Description
    Servicer, with the Company's written consent, shall have the right to subcontract with any third party, affiliate or unaffiliated, for the performance of services requested by the Company provided that Servicer shall remain responsible for the performance of services by any such subcontractors in accordance with the terms of this Agreement; and provided further that the charges for any such services subcontracted to an affiliate shall be determined on the basis described in Section 10. With respect to significant services that are subcontracted, this Agreement shall be amended and filed with the New York Insurance Department for appointing/changing a subcontractor or changing subcontractor services.
    Document
    ALLIANZ LIFE OF NY VARIABLE ACCOUNT C
  • Description
    To the extent permitted by applicable PRC laws and regulations, Party A shall have the right to subcontract to any third party the performance of all or any part of the Services. Party A shall use reasonable efforts to require its subcontractors to comply with applicable terms and conditions of this Agreement, including, without limitation, storing all TH China Data in the PRC pursuant to applicable PRC laws and regulations, and using all TH China Data for the sole purpose of performing the Services pursuant to this Agreement. Party A shall remain responsible for the performance of any Services by its subcontractors pursuant to this Agreement.
    Document
    TH International Ltd (THCH)
  • Description
    Subcontractors. Berkshire Grey will have the right to subcontract certain development tasks for which it is responsible to third parties, including its Affiliates, subject to the terms and conditions of this Agreement. Despite any permitted subcontracting, Berkshire Grey will remain liable at all times for all obligations set forth in this Agreement as being obligations of Berkshire Grey. Berkshire Grey will be solely responsible for all payments due to its subcontractors.
    Document
    Revolution Acceleration Acquisition Corp
  • Description
    Right to Subcontract. Calico shall have the right to subcontract its work to be performed under this Agreement without the approval of C4T. C4T shall have the right to subcontract work to be performed under this Agreement with the prior written approval of Calico, which shall not be unreasonably withheld or delayed. In each case, each Party will remain responsible to the other Party for the performance of such contracted work. C4T shall provide Calico with written notice in advance of the initiation of the subcontract. Further, the Party subcontracting the work must obtain a contract of confidentiality from the subcontractor in advance of initiation of work, which includes at least the terms of confidentiality required under this Agreement.
    Document
    C4 Therapeutics, Inc. (CCCC)
  • Description
    Subcontracting. The Parties have the right to subcontract their rights and obligations to its Affiliates, professional consultants/advisors and collaboration partners (“Third Parties”) without the prior written consent of the other Parties. Wherever in this Agreement responsibility is delegated to a Third Party, the delegating party (“Delegating Party”) undertakes to cause and ensure that such Third Party does not make decisions inconsistent with this Agreement, amend the terms of this Agreement or act contrary to its terms in any way. No such subcontracting shall relieve the Delegating Party of any obligations under this Agreement, and the Delegating Party shall remain liable towards the other Parties for the performance of all of its obligations under this Agreement, including the performance by its Third Parties.
    Document
    APRINOIA Therapeutics Inc.
  • Description
    Each party with the other party’s consent, shall have the right to subcontract with any third party, affiliate or unaffiliated, for the performance of services requested by the party provided that such party shall remain responsible for the performance of services by any such subcontractors in accordance with the terms of this Agreement; and provided further that the charges for any such services subcontracted to an affiliate shall be determined on the bases described in the Agreement.
    Document
    TIAA REAL ESTATE ACCOUNT
  • Description
    Managers’ Right to Subcontract. The Managers shall be entitled to subcontract any part of their obligations hereunder to third parties without the consent of the Owner.
    Document
    C3is Inc. (CISS)

What is the Right to Subcontract?

The “Right to Subcontract” refers to a provision within a contract that allows a party (typically the contractor) to engage third parties (subcontractors) to perform specific duties or portions of the work as outlined in the primary contract. This term is commonly utilized in industries such as construction, manufacturing, and various service sectors, where complex projects may require specialized skills or additional workforce that subcontractors can provide.

When should I use the Right to Subcontract?

The right to subcontract should be utilized when:

  • Expertise is Required: The primary contractor may not possess the necessary expertise in a particular area, necessitating the use of a subcontractor with the specialized skills required to complete that aspect of the project.
  • Resource Optimization: The contractor lacks the resources to complete the project independently due to time constraints or workforce limitations and needs subcontractors to divide the workload effectively.
  • Cost Efficiency: Engaging subcontractors can be a cost-effective method of ensuring project completion, especially when subcontractors can perform tasks more efficiently or at a lower cost.
  • Risk Mitigation: Subcontracting parts of a project can potentially spread and reduce risks associated with project delays or failures, as subcontractors can assume responsibility for specific tasks.

How do I write the Right to Subcontract?

When drafting a clause regarding the “Right to Subcontract,” consider the following essential components:

  • Consent Requirement: Specify whether the contractor needs prior approval from the client or other contracting parties before appointing subcontractors.

    Example: “The Contractor shall not subcontract any portion of the Work without obtaining the prior written consent of the Client, which shall not be unreasonably withheld.”

  • Scope of Work: Clearly define what parts of the work can be subcontracted.

    Example: “The Contractor may subcontract the electrical and plumbing work, subject to approval.”

  • Liability and Responsibility: Establish who holds responsibility for the subcontractor’s performance and compliance with contractual obligations.

    Example: “Notwithstanding any subcontracts entered into, the Contractor shall remain fully liable and responsible for the performance and compliance of all contracted work.”

  • Notification Requirements: Outline any requirements for notifying the client or other parties about the subcontracting arrangement.

    Example: “The Contractor shall notify the Client, in writing, of any subcontracting arrangements no fewer than 15 days prior to the intended start date of the subcontractor’s work.”

Which contracts typically contain the Right to Subcontract?

The right to subcontract is a common clause in various types of contracts, including:

  • Construction Contracts: To allow the main contractor to engage multiple subcontractors for different trades and specialties (e.g., plumbing, electrical, carpentry).
  • Service Agreements: Such as IT services, where a company might need to subcontract portions of technology development or customer support.
  • Manufacturing Agreements: Enabling companies to outsource parts of the production process that require specialized manufacturing capabilities.
  • Consulting Contracts: When a consulting firm may need to bring in external expertise for projects requiring specific domain knowledge.

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