The Software Development Subcontractor Agreement is essential for technology projects in the UAE where primary contractors need to engage additional development resources while maintaining control over project delivery and client relationships. This document is particularly relevant in the context of the UAE's growing technology sector and must comply with local regulations including Federal Law No. 33 of 2021 on Labor Relations, Federal Law No. 7 of 2002 on Copyright, and Federal Decree-Law No. 45 of 2021 on Data Protection. The agreement is designed to protect all parties' interests while ensuring clear allocation of responsibilities, intellectual property rights, and risk management in software development projects. It's commonly used when companies need specialized development skills, want to scale their development capacity, or require specific technical expertise not available in-house.
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1. Parties: Identification of the main contractor and subcontractor, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, including reference to the main contract and the need for subcontracting
3. Definitions: Detailed definitions of technical terms, project-specific terminology, and contract-specific concepts
4. Scope of Services: Detailed description of the software development services to be provided by the subcontractor
5. Term and Timelines: Duration of the agreement and key project milestones
6. Payment Terms: Compensation structure, payment schedule, invoicing requirements, and payment methods
7. Intellectual Property Rights: Ownership and licensing of developed software, existing IP, and third-party components
8. Confidentiality: Protection of confidential information and trade secrets
9. Data Protection and Security: Obligations regarding data handling, security measures, and compliance with UAE data protection laws
10. Warranties and Representations: Guarantees regarding service quality, compliance with laws, and capacity to contract
11. Subcontractor Obligations: Key responsibilities including reporting, quality standards, and compliance requirements
12. Main Contractor Obligations: Responsibilities of the main contractor including provision of necessary information and materials
13. Termination: Grounds for termination, notice requirements, and consequences of termination
14. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution
1. Source Code Escrow: Provisions for source code escrow arrangements, used when the client requires additional security
2. Non-Compete: Restrictions on competitive activities, used when protecting market position is crucial
3. Insurance: Specific insurance requirements, used for high-value or high-risk projects
4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term projects
5. Change Control: Procedures for managing changes to project scope or requirements, useful for complex projects
6. Knowledge Transfer: Provisions for training and knowledge transfer, important when future maintenance is planned
7. Parent Company Guarantee: Additional security through parent company guarantees, used for high-value contracts
8. Performance Bonds: Requirements for performance bonds, used in large-scale projects
1. Schedule 1 - Services Description: Detailed technical specifications and scope of the software development work
2. Schedule 2 - Project Timeline: Detailed project milestones, deliverables, and deadlines
3. Schedule 3 - Payment Schedule: Detailed breakdown of payment amounts, milestones, and terms
4. Schedule 4 - Service Levels: Performance metrics, quality standards, and response times
5. Schedule 5 - Technical Requirements: Specific technical requirements, platforms, and technologies to be used
6. Schedule 6 - Testing and Acceptance Criteria: Detailed testing procedures and acceptance criteria for deliverables
7. Schedule 7 - Data Processing Agreement: Specific terms for handling personal and sensitive data
8. Appendix A - Contact Details: Key personnel and escalation contacts for both parties
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