The Subcontractor Hold Harmless Agreement is a vital risk management instrument commonly used in Malaysian construction and infrastructure projects. It is implemented when a contractor engages subcontractors and needs protection against potential claims, losses, or damages that might arise from the subcontractor's work, negligence, or defaults. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950, Construction Industry Development Board Act 1994, and relevant safety regulations. It typically includes detailed provisions on insurance requirements, scope of indemnification, duration of protection, and specific procedures for handling claims. This document is particularly crucial in complex projects where multiple subcontractors are involved and risk management is paramount.
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1. Parties: Identification and details of the Contractor and Subcontractor, including registration numbers and addresses
2. Background: Context of the agreement, reference to the main contract, and purpose of the hold harmless arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Indemnification', 'Claims', and 'Losses'
4. Scope of Work: Description of the subcontractor's work and responsibilities under the main contract
5. Indemnification Obligations: Detailed provisions of the hold harmless and indemnification commitments by the subcontractor
6. Insurance Requirements: Specific insurance coverage requirements and minimum coverage amounts
7. Duration: Term of the hold harmless agreement and survival provisions
8. Governing Law: Specification of Malaysian law as governing law and jurisdiction
9. Execution: Signature blocks and execution requirements
1. Third Party Claims: Additional provisions specifically addressing third party claims and procedures, used when there is significant risk of third party involvement
2. Environmental Indemnification: Specific provisions for environmental liability, used in projects with environmental risks
3. Intellectual Property Indemnification: Provisions covering IP-related claims, used when the work involves design or technical elements
4. Cross-Indemnification: Mutual indemnification provisions, used when both parties share significant risks
5. Defense Obligations: Specific procedures for defending claims, used in high-risk projects
6. Alternative Dispute Resolution: Mediation or arbitration procedures, used when parties prefer alternative dispute resolution
1. Schedule A - Scope of Works: Detailed description of the subcontractor's work and responsibilities
2. Schedule B - Insurance Requirements: Specific insurance types, coverage amounts, and certificate requirements
3. Schedule C - Main Contract Extract: Relevant excerpts from the main contract affecting the hold harmless obligations
4. Appendix 1 - Form of Insurance Certificate: Template for required insurance certificates
5. Appendix 2 - Incident Reporting Procedure: Procedures for reporting incidents that may trigger indemnification
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