Document background
The Independent Contractor Subcontractor Agreement is essential for businesses operating in Pakistan that need to formally engage independent contractors for specific projects or services. This document is particularly crucial in the Pakistani business environment where clear distinction between employment and contractor relationships is necessary for legal and tax purposes. The agreement typically comes into play when a primary contractor needs to delegate portions of their contractual obligations to a specialized service provider while maintaining their primary responsibility to the end client. It incorporates key elements required under Pakistani law, including compliance with the Contract Act 1872 and relevant tax regulations, while establishing clear boundaries regarding independence, scope of work, payment terms, and liability. This agreement is commonly used in various sectors from IT to construction, where project-based work and specialized services are frequently subcontracted.
