Subcontracting

The subcontracting clause outlines the conditions under which a party to the contract may hire third parties (subcontractors) to perform certain tasks or services. It typically includes stipulations about the approval process, responsibilities, and liabilities of the subcontractor, ensuring that the primary obligations of the contract are met.

15 Subcontracting examples

  • Description
    SERVICE and SUBCONTRACTING AGREEMENT This Service and Subcontracting Agreement (this “Agreement”) is entered into by and between Teachers Insurance and Annuity Association of America, a New York life insurance company (“TIAA”), and TIAA Shared Services, LLC, a Delaware limited liability corporation (“TSS”) and is effective as of April 1, 2021.
    Document
    TIAA CREF LIFE SEPARATE ACCOUNT VA-1
  • Description
    Protecting the Government's Interest when Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment
    Document
    INDIVIOR PLC (INDV)
  • Description
    The Commercial Manager shall provide and/or procure, directly or through subcontracting, the provision of the services specified hereunder in the name of the Shipowning Entities or otherwise on its behalf and do all things which may be expedient or necessary for the provision of said services or otherwise in relation to the commercial operation of the Vessels, such services as stated below:-
    Document
    United Maritime Corp (USEA)
  • Description
    HUMAN RESOURCING AGREEMENT   This SUBCONTRACTING AGREEMENT, being made this 1st day of October 2020 by and between Elvictor Group, Inc., a Nevada corporation (hereinafter the “Company”) and Elvictor Crew Management Limited (hereinafter the “Contractor”). The Agreement will become effective on the date of this Agreement as detailed above.
    Document
    Elvictor Group, Inc. (ELVG)
  • Description
    Term: This Subcontracting Agreement shall have an indefinite term, provided that this Agreement may be cancelled by either party at any time with written notice provided sixty (60) days prior to cancellation.
    Document
    Elvictor Group, Inc. (ELVG)
  • Description
    25.01 Assignment and Subcontracting. Vendor shall not, without the consent of AMEX, which consent may be given or withheld for any reason in AMEX’s sole discretion (1) assign this Agreement or any amounts payable pursuant to this Agreement other than to Vendor’s parent, a successor to Vendor’s parent, or a wholly-owned subsidiary of Vendor for so long as such subsidiary remains wholly-owned by Vendor or (2) subcontract the provision of any of the Services (except as set forth in Section 8.02). The consent of AMEX to any assignment or subcontracting shall not (a) with respect to subcontracting, relieve Vendor of its responsibility for the performance of any of its other obligations under this Agreement or (b) constitute AMEX’s consent to further assignment or subcontracting. This Agreement shall be binding on the parties and their respective successors and permitted assigns. Any assignment or subcontracting in contravention of this Section 25.01 shall be void. Notwithstanding the foregoing, AMEX may assign this Agreement to its parent, a wholly-owned subsidiary or an affiliate if AMEX provides Vendor with 30 days’ notice prior to the effective date of assignment.
    Document
    AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
  • Description
    8.02 Subcontractors. Vendor may not subcontract any of the Services without AMEX’s written consent, which consent may be given or withheld for any reason in AMEX’s sole discretion. AMEX agrees to respond within a reasonable period of time to a request by Vendor for such consent. The consent of AMEX to any subcontracting of the Services shall not relieve Vendor of its responsibility for the performance of its obligations under this Agreement. Vendor shall remain fully responsible for any obligations subcontracted and shall be solely responsible for payments due such subcontractors. Vendor has disclosed those subcontractors for the performance of its Services as of the Effective Date and listed in Exhibit G and AMEX hereby consents thereto.
    Document
    AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
  • Description
    (6)52.219 -8, Utilization of Small Business Concerns (SEP 2023) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds the applicable threshold specified in FAR 19.702(a) on the date of subcontract award, the subcontractor must include 52.219 -8 in lower tier subcontracts that offer subcontracting opportunities.
    Document
    Valneva SE (VALN)
  • Description
    10.7    Performance by Subparties. Subject to Section 2.2(b), the parties recognize that each may perform some of its obligations under this Agreement through its Affiliates, and its and such Affiliates’ sublicensees and subcontractors (a party’s Affiliates and such party’s and such Affiliates’ sublicensees and subcontractors, each, a “Subparty” and collectively, “Subparties”), provided, however, that (a) Licensor will be jointly and severally liable with Licensor’s Subparties for the performance of Licensor’s Subparties, (b) Company will be jointly and severally liable with Company’s Subparties for the performance of Company’s Subparties, (c) Licensor will be the guarantor of the performance by Licensor’s Subparties, and will cause Licensor’s Subparties to comply with the provisions of this Agreement in connection with such performance, and (d) Company will be the guarantor of the performance by Company’s Subparties, and will cause Company’s Subparties to comply with the provisions of this Agreement in connection with such performance. For clarity, none of the rights of Licensor or Company (each, the “Non-Subcontracting Party”, as applicable) hereunder may be materially diminished or otherwise materially adversely affected as a result of performance by the other party’s Subparties, and Licensor and Company (each, the “Subcontracting Party”, as applicable) will require a written agreement (a “Subcontract”) with their respective Subparties that will perform the Subcontracting Party’s obligations under this Agreement explicitly confirming that such rights are protected, and that will grant third-party beneficiary status to the Non-Subcontracting Party (including the right to enforce the Subcontract and to require payment or other performance directly from the Subparty to the Non-Subcontracting Party). For example, if any Subparties of Company participate in research or other activities in furtherance of the development or commercialization of Products, Company will ensure, and hereby guarantees, that (i) any intellectual property developed by such Subparties will be governed by the provisions of this Agreement (including the obligations in Section 5.2) as if such intellectual property had been developed by Company, (ii) confidential information will be protected by such Subparties as required in this Agreement (including the obligations in Sections 6.1, 6.4 and 6.5) and (iii) the Subparties will covenant to all Company covenants herein (including the covenants in Sections 7.4 and 7.5). Any action or omission by a Subcontracting Party’s Subparties which would, if such action or omission were conducted by the Subcontracting Party, constitute a breach of the Subcontracting Party’s obligations under this Agreement will constitute a breach of such obligation by the Subcontracting Party (unless such obligation were otherwise satisfied by such party or another of its Subparties).
    Document
    Connect Biopharma Holdings Ltd (CNTB)
  • Description
    7.2 Effect of subcontracting   The entry by the Consultant into a subcontract will not relieve the Consultant from liability for the performance of any of its obligations under this agreement. The Consultant will be fully liable to the Company for the acts and omissions of each of its subcontractors as if they were acts or omissions of the Consultant.
    Document
    NAKED BRAND GROUP Ltd (CENN)
  • Description
    7.1 Restriction on subcontracting   The Consultant shall not be permitted to subcontract any person to provide all or any part of the Services unless the subcontractor and the relevant subcontract have first been approved in writing by the Company.
    Document
    NAKED BRAND GROUP Ltd (CENN)
  • Description
    Sanei is subcontracting with Canon Electronics Co., Ltd., Chichibu, Japan (“Canon Electronics”) for part of the production.
    Document
    Medirom Healthcare Technologies Inc. (MRM)
  • Description
    Subcontracting by the Service Provider/Institution in the performance of the Services and the performance of the Services by the subcontractors shall be bound by the terms and conditions of the Agreement. Subcontractors used in the performance of the Services described herein are detailed in Schedule C.
    Document
    OPGEN INC (OPGN)
  • Description
    6. Subcontracting (1) Subcontracting for the purpose of this Agreement is to be understood as meaning services which relate directly to the provision of the principal service. This does not include ancillary services, such as telecommunication services, postal / transport services, maintenance and user support services or the disposal of data carriers, as well as other measures to ensure the confidentiality, availability, integrity and resilience of the hardware and software of data processing equipment. The Supplier shall, however, be obliged to make appropriate and legally binding contractual arrangements and take appropriate inspection measures to ensure the data protection and the data security of the Client’s data, even in the case of outsourced ancillary services.
    Document
    OPGEN INC (OPGN)
  • Description
    11.2 Subcontracting     (a) SMX Israel may subcontract part or all of the provision of Services under this Agreement without the prior consent of TrueGold. SMX Israel acknowledges and agrees that the subcontracting by it of the Services does not in any way relieve it from the performance of any of its obligations under this Agreement.     (b) SMX Israel will remain primarily liable for the performance of any subcontractor it employs to undertake any of the Services.  
    Document
    Empatan Public Ltd Co (SMX, SMXWW)

What is Subcontracting in contracts?

Subcontracting is the practice of delegating certain tasks, jobs, or processes to an external party (the subcontractor) rather than handling them in-house. It allows businesses to leverage specialized skills or resources that may not be available internally. By subcontracting, companies can efficiently manage their workload, focus on core activities, and often reduce costs.

When Should I Use Subcontracting clause?

Subcontracting is beneficial in various scenarios, such as when:

  • Specialized Expertise is Required: If the project needs specific skills or expertise not available within your organization.
  • Cost Efficiency is Needed: To reduce expenses associated with employing full-time staff or investing in specialized equipment.
  • Meeting Deadlines: When tight deadlines must be met, subcontracting can speed up processes by distributing work among specialized teams.
  • Flexibility in Workforce: To maintain a flexible workforce that can be scaled up or down based on the project needs.
  • Risk Management: Subcontracting can help mitigate risks by spreading responsibilities and utilizing experienced third parties.

How Do I Write a Subcontract clause?

Writing a subcontract involves several key components to ensure clarity and legal compliance. Here’s a general framework:

  1. Define the Scope of Work: Clearly describe the tasks or services the subcontractor will perform.
  2. Set Timelines and Deadlines: Specify project start and end dates, along with any critical milestone deadlines.
  3. Determine Payment Terms: Describe the payment structure, including rates, payment schedule, and any penalties for late payments.
  4. Include Confidentiality and Non-Disclosure Clauses: Protect sensitive information shared during the project.
  5. Stipulate Quality Standards: Define the standards or benchmarks for work quality and performance expectations.
  6. Outline Termination Conditions: Include terms for ending the contract prematurely if necessary.
  7. Specify Indemnity and Liability: Clarify the extent of liability and responsibility for potential risks or damages.

Which Contracts Typically Contain Subcontracting?

Subcontracting is often present in various types of contracts, especially in industries that require specialized or temporary services. Some typical contracts include:

  • Construction Contracts: Subcontracting is common for electrical, plumbing, carpentry, and other specialized construction tasks.
  • IT and Software Development Contracts: For specific software modules, coding tasks, or technical support, companies often hire subcontractors.
  • Manufacturing Agreements: When producing parts or components requires machines or expertise that a manufacturer doesn’t possess internally.
  • Consulting Agreements: For hiring external experts who provide specific advice or services that aren’t permanently needed.
  • Event Planning or Logistics Contracts: Engaging third-party vendors for catering, security, or transportation.

By clarifying the roles, responsibilities, and expectations through well-written subcontracts, businesses can effectively leverage subcontracting to optimize their operations.

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More Clauses from the Library

Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.

Subcontractors

The "Subcontractors" clause outlines the conditions under which a primary contractor is permitted to hire third parties to perform parts of the contracted work. It typically includes requirements for approval by the original client and stipulations ensuring that subcontractors comply with the same standards and obligations set forth in the main contract.

21 example clauses

Subject person

A "subject person" clause typically defines the individual or entity to whom certain responsibilities, rights, or conditions within a contract apply, ensuring clarity regarding who is bound or benefited by specific terms. This clause helps prevent ambiguity and potential disputes by explicitly identifying the relevant party involved in contractual obligations or entitlements.

16 example clauses

Subordination of lease

The "Subordination of Lease" clause establishes that the tenant's lease is subordinate to the liens of any current or future mortgages on the property, giving the mortgage lender's rights priority over the tenant's rights. This means that if the property is foreclosed, the lease may be terminated unless the lender agrees otherwise.

20 example clauses