The Subcontractor Hold Harmless Agreement is a crucial risk management tool in Philippine construction and development projects. It is typically used when a principal contractor engages subcontractors for specialized work, ensuring that the principal contractor is protected from liability arising from the subcontractor's activities. The agreement must comply with Philippine civil law, particularly the Civil Code and construction industry regulations, while addressing specific local requirements for insurance, liability, and dispute resolution. This document is essential for projects where multiple contractors work together, as it clearly delineates responsibilities and liability obligations. The agreement includes detailed provisions for indemnification, insurance requirements, notice procedures, and claim handling, all tailored to the Philippine legal and business environment.
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1. Parties: Identification of the Principal Contractor and Subcontractor, including their complete legal names, addresses, and registration details
2. Background: Context of the agreement, reference to the main construction contract, and the relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement, including 'Hold Harmless,' 'Indemnification,' 'Claims,' and 'Losses'
4. Scope of Work: Description of the subcontracted work to which the hold harmless provisions apply
5. Indemnification Obligations: Detailed provisions of the hold harmless and indemnification obligations of the Subcontractor
6. Insurance Requirements: Mandatory insurance coverage to be maintained by the Subcontractor
7. Duration and Survival: Term of the agreement and which provisions survive termination
8. Notice Requirements: Procedures for providing notice of claims and communication between parties
9. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes
10. Execution: Signature blocks and execution requirements
1. Third Party Claims: Additional provisions specifically addressing claims from third parties, used when the project involves significant public interface
2. Environmental Indemnification: Specific provisions for environmental liability, used for projects with environmental risks
3. Intellectual Property Indemnification: Provisions protecting against IP infringement claims, used when the work involves design or technical specifications
4. Cross-Indemnification: Mutual indemnification provisions, used when both parties share certain risks
5. Alternative Dispute Resolution: Mediation or arbitration procedures, used when parties prefer alternative dispute resolution to court proceedings
6. Force Majeure: Provisions for unforeseen circumstances, used in longer-term subcontracts
1. Schedule A - Scope of Work: Detailed description of the subcontracted work and specifications
2. Schedule B - Insurance Requirements: Specific insurance types, coverage amounts, and provider requirements
3. Schedule C - Principal Contract Excerpts: Relevant excerpts from the principal contract that affect the hold harmless obligations
4. Schedule D - Form of Indemnity Certificate: Standard form for periodic confirmation of indemnity obligations
5. Appendix 1 - Notice Details: Contact information and procedures for serving notices
6. Appendix 2 - Insurance Certificates: Copies of required insurance certificates and policies
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