Employment & HR

Subcontractor Agreement -- Corporate, Project

A Corporate Subcontractor Agreement for project-based engagements. Defines the subcontracting relationship, deliverables, payment, and ensures clear distinction from employment.

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Drafted to comply with Kenyan law and international common law standards.

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What this document covers

Main contractor and subcontractor details
Reference to main contract with client
Subcontract scope and deliverables
Payment terms (tied to main contract payment if applicable)
Indemnification for subcontractor's work
Insurance requirements
IP and confidentiality obligations
Termination provisions
Governing law clause

Frequently Asked Questions

Is a subcontractor agreement different from an employment contract in Kenya?
Yes. A subcontractor agreement creates a B2B relationship between two companies. The subcontractor is not an employee and is not entitled to statutory employment benefits. However, if the subcontractor is an individual working exclusively for one principal, the Employment Act 2007 may still apply.
Who is liable if a subcontractor causes damage or injury in Kenya?
Generally, the main contractor is responsible to the client for the subcontractor's work. The subcontractor is responsible to the main contractor for their own work. The agreement should clearly set out indemnification obligations and require the subcontractor to hold their own insurance.
Is a subcontractor agreement valid internationally?
Yes. Subcontractor agreements are standard commercial documents across all common law jurisdictions. For cross-border arrangements, specify governing law, dispute resolution, and whether the main contract (with the ultimate client) imposes any requirements on subcontracting.