Hr Excutive
Recruitment/talent Acquisition, Career Counselling
Hr Executive
Associate Hr
Executive - Hr & Admin
Siddhartha Sharma
Project Management, Business Management,brand
+4 Others

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Hello, I am in the process of setting up a new / startup staffing company. Can someone share with me some typical Agreement / Contract templates with clients. Regards Siddartha
Dear Sidharth

You may take help of this. I have some other formats too, pls give your email Id, I ll mail you.


This Agreement made at Bangalore on the April 01, 2004 , between:

1) ………. Limited, company duly incorporated under the Companies Act, 1913 and having its Registered Office at ………………… Bangalore-560001 hereinafter referred to as “ ……….Ltd” (which expression, unless it be repugnant to the context or meaning thereof shall be deemed to mean and include its successors and assigns) of the One Part


2) M/S. A & B Associates, a company duly registered with registrar of companies and having its Registered Office at A & B Associates ………………..Bangalore – 560 001 hereinafter referred to as “A & B Associates” (which expression unless it be repugnant to the context or meaning thereof shall be deemed to mean and include its successors or assigns) of the Other Part.


(i) …….Ltd is in the business of manufacture and marketing of electrical and electronic equipment, products and providing engineering solutions.

(ii) A & B Associates has represented to ……..Ltd that A & B Associates has the necessary infrastructure, expertise, experience and knowledge to provide Marketing and Sales Services (as hereinafter defined) to ……Ltd.

(iii) A & B Associates has offered to provide the services to …..Ltd at locations to be agreed upon by mutual discussion.

(iv) ………Ltd has agreed to avail of the above Services (particulars whereof are set out in the Scope of Service – Annexure A hereto) to be provided by A & B Associates on a non-exclusive basis with respect to the location on the terms and conditions mutually agreed by and between ………Ltd and A & B Associates.

The Parties hereto are desirous of recording such terms and conditions in the manner hereinafter appearing.


1. Definitions:

“Affiliate” shall mean with respect to any person, any other person directly or indirectly Controlling, Controlled by, or under direct, indirect or common Control with, such person. For the purposes of this definition of “Affiliate”, “Control”, “Controlled” or “Controlling” shall mean, with respect to any person, any circumstance in which such person is controlled by any person by virtue of the latter person controlling the composition of the board of directors or managers or owning or controlling percentage of the voting securities or interests of such person or otherwise.

“Area” shall mean the designated location assigned by ………Ltd from time to time, to A & B Associates to perform his Services in accordance with this Agreement.

“Compensation” shall mean the amount to be paid to A & B Associates by ……….Ltd as a consideration for the services as set out in Annexure B.

“Parties” shall mean the joint reference to ……….Ltd and A & B Associates.

“Party” shall mean either ………..Ltd or A & B Associates.

“Services” shall mean all services necessary or required to be rendered by A & B Associates to …….Ltd to effectively meet the requirements of ……..Ltd including services set out in Scope of Services – Annexure-A hereto.

“Service Fees” shall mean the amount to be paid to A & B Associates by ……..Ltd as a consideration for the Services as set out in Annexure B.


2. …….Ltd hereby appoint A & B Associates to effectively manage and perform its obligations as stated in the scope of services in Annexure A on a non-exclusive basis and A & B Associates hereby accepts the appointment and agrees to provide the Services in the Area and agrees to provide Scope of Services more particularly set out in Annexure-A hereto in accordance with the terms and conditions set out herein.


3. Unless terminated earlier, the appointment of A & B Associates shall be for a period of 12 (twelve) months commencing from 01/04/2004 and ending on 31/03/2005. ……Ltd reserves the right to extend the term of this Agreement on the same terms and conditions at its sole discretion.


4. A & B Associates agrees that:

4.1 A & B Associates shall provide Services as discussed and detailed in the Area. …….Ltd shall be entitled, at its sole discretion, to enlarge or curtail the Area.

4.2 A & B Associates shall not do or cause to be done any act whereby or by reason whereof the reputation and goodwill of …..Ltd is adversely affected in any manner whatsoever.

4.3 At all times, all the services provided by A & B Associates shall be of highest standard.

4.4 A & B Associates shall develop its own network and arrangements and appoint/retain/engage its own employees for providing Services as referred to in the Scope of Services – Annexure-A.

4.5 A & B Associates shall at all times, employ adequate number of competent, qualified and experienced personnel / employees to carry out the Services. If required by …..Ltd, A & B Associates shall provide resumes and such other details of its employees to …..Ltd.

4.6 All the employees of A & B Associates shall be sufficiently trained and shall have adequate knowledge of the Services to be provided.

4.7 …….Ltd shall be entitled to require A & B Associates to remove any employee of A & B Associates from the team of employees providing Services, if in the reasonable opinion of ……..Ltd such employee is not suitable / not competent and/or desirable

4.8 …..Ltd shall anytime at its own discretion, by giving (thirty) 30 days notice, require A & B Associates to curtail or increase the number of persons providing services.

4.9 All persons employed by A & B Associates for rendering Scope of Services hereunder shall be employees of A & B Associates and A & B Associates shall be solely liable and responsible for timely payments of all dues to such employees, such as salaries, wages and other dues whether statutory or otherwise.

4.10 All persons engaged by A & B Associates for providing services under this Agreement, shall be under direct control and supervision of A & B Associates and all such persons shall not be deemed or construed to be employees of …..Ltd at any time for whatsoever purpose

4.11 A & B Associates shall be free to offer such incentive schemes and set up such management systems for its employees as it deems fit to ensure the fulfillment of A & B Associates obligations under this Agreement.

4.12 A & B Associates shall promptly pay all undisputed claims, dues salaries and wages of all its employees providing Services for A & B Associates……Ltd shall have the right to require A & B Associates to submit satisfactory evidence of payment of dues salaries and wages.

4.13 A & B Associates shall be liable and responsible for meeting all liabilities of the employees employed by A & B Associates and meet such liabilities in a timely manner in compliance with all the applicable laws. ……Ltd shall have the right to require A & B Associates to submit satisfactory evidence of satisfying/discharging all such liabilities.

4.14 …….Ltd shall not be liable for any payments, dues, wages and salaries of the employees of A & B Associates

4.15 Employees of A & B Associates shall enter ……Ltd premises only when specifically instructed to do so. Employees of A & B Associates shall not cause any nuisance in …….Ltd premises or inconvenience any other person threat.

Support and Office Material

5. ……..Ltd will provide the material to A & B Associates to be used for delivering the services of …Ltd. A & B Associates shall use such material solely for the purpose of rendering Services hereunder in accordance with instructions of ……..Ltd and for no other purpose. Upon expiry or termination of this Agreement, A & B Associates shall promptly return or deal with all such material in accordance with the instructions from …….Ltd.

Payment and Settlement of Accounts:

6.1 In full consideration of the Services to be provided by A & B Associates hereunder …….Ltd shall pay to A & B Associates the Service charges and/or other charges as set out in Annexure-B hereto.

6.2 A & B Associates shall maintain at all times cost records and accounts related to this Agreement. ……Ltd shall have the right to examine, with advance notification, such records and accounts for the limited purpose of verifying requests for payment when costs are the basis of such payment.

6.3 Invoices shall be delivered on the 15th of each month. In the event of any discrepancies or errors in the invoices submitted by A & B Associates, the payment period shall be calculated from the receipt of the revised and corrected invoice. ……..Ltd shall pay the amounts due to A & B Associates within 15 working days of receipt of proper invoice.


7.1 A & B Associates indemnifies …..Ltd from all loss or damages arising out of all or any payment of statutory dues and employee benefits. However, A & B Associates shall not defend and hold harmless -…Ltd, its Affiliates and their officers, directors, employees and agents from and against any and all losses, liabilities, claims, obligations, costs, expenses (including, reasonable attorneys’ fees), which result from, arise in connection with or are related in any way to claims by third parties.

7.2 For the purposes of the Clause 7.1, a reference to " A & B Associates " shall include A & B Associates and its officers, employees, agents, representatives, consultants, and/or other authorized persons.


8.1 A & B Associates shall hold all information, data, material, instructions, communications, the terms and conditions of business as strictly confidential, whether received in writing or oral form, from ……Ltd by A & B Associates. The breach of this clause shall be construed as a material breach and ……Ltd may terminate this Agreement forthwith in case of breach on the part of A & B Associates. The Parties also agree:

(i) to maintain and use the confidential information only for the purposes of this Agreement and only as permitted herein;

(ii) to only make copies as specifically authorized by the prior written consent of the other party and with the same confidential or proprietary notices as may be printed or displayed on the original;

(iii) to restrict access and disclosure of confidential information to such of their employees, agents, and third parties on a "need to know" basis, and upon the execution of a written undertaking from such employees, agents, and third parties to maintain confidentiality of the confidential information disclosed to them in accordance with this Clause 8; and

(iv) to treat confidential information as confidential for a period of five (5) years from the date of receipt. In the event of earlier termination of this Agreement, the Parties hereby agree to maintain the confidentiality of the confidential information for a further period of five (5) years from the date of such termination.

8.2 A & B Associates agrees that any of …….Ltd technical or business information that A & B Associates employees or agents acquire while on …….Ltd premises, or through access to …….Ltd computer systems or databases while on or off ……Ltd premises, shall be deemed Confidential information.

8.3 All information provided by …..Ltd to A & B Associates shall, at all times, remain the sole and exclusive property of …..Ltd. Upon termination/expiry of this Agreement, confidential information shall be returned to …..Ltd or destroyed in accordance with the instructions of …..Ltd and evidence of such destruction provided to ……Ltd to its reasonable satisfaction. …..Ltd may at its sole option, witness the destruction.


9. It is agreed between the Parties that this Agreement entered into between them is strictly on a principal-to-principal basis. Under no circumstance shall …..Ltd be deemed to have instructed, communicated or corresponded with any of A & B Associates employees in relation to Services under this Agreement.


10.1. A & B Associates shall not assign or sub-contract this Agreement in whole or in part to any third party, without the prior written consent of …Ltd.

10.2 ….Ltd may at its sole discretion, assign this Agreement, and the rights and obligations of …..Ltd to an Affiliate of ….Ltd with the prior written consent of A & B Associates.


11.1 Unless otherwise agreed by …Ltd, A & B Associates shall ensure that during the subsistence of this Agreement any employee of A & B Associates who is performing the Services under this Agreement as directed & controlled by A & B Associates, shall not undertake any other assignment for A & B Associates competing with the business of …Ltd

11.2 A & B Associates agrees that during the subsistence of this Agreement, A & B Associates (either directly or indirectly through his Affiliates, associates, family, friends or relatives) shall not undertake additional assignment without prior informationn / notification to ….Ltd, where its client/ customer competing the business of …Ltd. However, A & B Associates shall, make written communication giving all the particulars about the assignment, etc to …Ltd.


12.1 …..Ltd shall provide A & B Associates with its catalogue, instruction manual, and circulars, for performing the Services. Any Advertisements undertaken by A & B Associates, shall require prior written sanction / approval of …Ltd. …..Ltd would have no obligation to reimburse full or part expenditure of any advertising incurred by A & B Associates unless agreed to in writing before commencement of such activity.

12.2 A & B Associates shall use the name and logo of ABB as directed by …..Ltd and in no other manner whatsoever. In any event, A & B Associates shall not use the name or logo of …..Ltd in any manner whatsoever either for credit arrangements or otherwise. It is agreed that …..Ltd shall not in any way be responsible for the debts, liabilities or obligations of A & B Associates and/or A & B Associates employees.

No Agency

13.1 This document is not intended to and shall not be deemed to bring into existence a relationship of principal and agent between …..Ltd and A & B Associates. A & B Associates shall not represent or hold himself out as agent of …Ltd except to the extent provided under this Agreement.

13.2 A & B Associates shall not make any commitments or representations to the prospective subscribers or enter into any agreement with them on behalf of ….Ltd.


14.1 …..Ltd may at any time terminate this Agreement by giving thirty (30) days notice, or in lieu thereof pay one months Service Fee to A & B Associates; or

14.2 … shall be entitled to forthwith terminate this Agreement by a notice in writing upon the occurrence of the following events:

a) A & B Associates ceasing to function as a concern. ; or

b) A & B Associates being declared bankrupt in liquidation, whether compulsory or voluntarily; or

c) Any change in the ownership or control of A & B Associates; or

d) Any breach by A & B Associates of any obligations under this Agreement; or

e) If the appointment or continuance of A & B Associates under this Agreement is likely to result in loss of goodwill or reputation of …..Ltd or any of its directors of officers; or

f) Failure to conform to, or breach by A & B Associates of any applicable law ; or barred by any law in force or

g) Any act or omission by A & B Associates or any employee of A & B Associates, which in the opinion of ….Ltd, has the effect of causing any adverse effect to the goodwill or reputation of …Ltd.

h) Termination by convenience by giving one month notice in writing to the address mentioned in this agreement.

14.3 In the event of a termination …..Ltd shall pay A & B Associates service fee / compensation as defined herein as full and final settlement of account of and amounts due and not previously paid to A & B Associates for Services rendered in accordance with the terms of the Agreement, prior to such Notice, and for Services thereafter rendered as specified in such Notice subject to claims dues and setoffs by …..Ltd.

14.4 On termination or expiry of this Agreement A & B Associates shall immediately return to …..Ltd all technical and business documentation or information and advertisement material and destroy all unused stationery.

14.5 Each party shall abide by and uphold all rights and obligations accrued or existing as on the terminating date.

Limitation of Liability

15.1 In any event the aggregate liability of ….Ltd and/or its Affiliates arising in any manner whatsoever shall in no event exceed the amount remaining unpaid (after setting off all amounts due from A & B Associates) in respect of services rendered prior to occurrence of the event giving rise to any liability of …Ltd.

15.2 Not withstanding anything to the contrary in the Agreement, in no event shall either Party be liable, whether in contract, tort, or otherwise, for special, punitive, indirect or consequential damages, including, without limitation, loss of profits or revenues arising under or in connection with this Agreement.

Records and Reports:

16. A & B Associates shall maintain records and accounts of all:

(i) Expenses

(ii) Transactions – financial or otherwise and/or correspondence entered into by and between …..Ltd and A & B Associates and submit such reports to ….Ltd periodically as specified by …Ltd; and

(iii) Details of progress reports; and

(iv) Such other records and reports as may be specified by …..Ltd from time to time.

A & B Associates shall diligently and faithfully submit such reports to …..Ltd in such format as prescribed by it on regular basis as specified by ….Ltd.


17. A & B Associates shall provide to ……Ltd, its internal and external auditors, inspectors, regulators and other representatives that …..Ltd may designate from time to time access at reasonable hours to A & B Associates personnel and to A & B Associates Records and other pertinent information, all to the extent relevant to the performance of A & B Associates financial obligations under this Agreement. Such access shall be provided for the purpose of performing audits and inspections to: (i) verify the accuracy and completeness of A & B Associates invoices; (ii) verify the accuracy and completeness of pass-through expenses; (iii) examine the financial controls, processes and procedures utilized by A & B Associates in connection with the obligations under the Agreement (iv) enable …..Ltd to meet applicable legal, regulatory and contractual requirements. A & B Associates shall provide any assistance reasonably requested by …..Ltd or its designee in conducting any such audit and shall make requested personnel, records and information available during the Term and up to 3 (three) years thereafter. A & B Associates shall not be required to provide any of its internal or external auditors to participate in such audit unless specifically requested by …..Ltd in writing, in which case ….Ltd shall be responsible for any incremental cost for such auditor's participation.

Applicable Law:

18. A & B Associates warrants that all Services under the Agreement shall be performed in strict compliance with all applicable laws including but not limited to the Minimum Wages Act, Employees State Insurance Act, Provident Fund Act and Payment of Bonus Act as also to any other order, ordinances, notifications, rules, regulations, legislation or provision of or having the force, whether Central, State, Municipal or otherwise, related to or pertaining to the execution or performance of the Promotional Services under this Agreement. A & B Associates shall execute and deliver to ……Ltd any documents as may be required to effect or to evidence such compliance. All laws and regulations required to be incorporated in agreements of this character are hereby incorporated herein by reference.

Settlement of Disputes

19.1 Neither party shall be entitled to make any claim and or be liable to the other party whether in tort (including negligence) or in Agreement except as specifically provided in this Agreement.

19.2 Any claim arising out of or attributable to the interpretation or performance of this Agreement which cannot be resolved by negotiation shall be considered a dispute within the meaning of this Section.

19.3 If for any reason ….Ltd and A & B Associates are unable to resolve a claim for an adjustment, A & B Associates shall notify ……Ltd in writing that a dispute exists and request a final determination by …..Ltd. Any such request by A & B Associates shall be clearly identified by reference to this Section and shall summarize the facts in dispute and A & B Associates proposal for resolution.

19.4 …Ltd and A & B Associates will meet for negotiations at a mutually agreed time and place. The parties shall endeavor to settle the claim through discussions between the Parties’ duly appointed representatives. It is agreed by the Parties that if the matter does not get resolved within 15 (fifteen) calendar days from the commencement of such negotiations, the parties shall consider resolution of the dispute through arbitration.


20 All disputes and differences of any kind whatsoever arising out of or in connection with this Agreement that is not resolved subject to Clause 19 shall be referred to arbitration. Each party will nominate one arbitrator and the arbitrators so appointed shall appoint the third Arbitrator. The arbitration proceedings shall be in accordance with Arbitration and Conciliation Act 1996. The arbitration shall be at Bangalore and the proceedings shall be held in English.

Press Releases:

21. A & B Associates shall not (or permit any Affiliate, or any third party to) put out any press or other media release or make any public announcement or statement relating in any way to the Agreement contemplated herein, the business of …..Ltd, the activities of the …..Ltd or any other arrangement between the parties hereto without the prior consent of …..Ltd.


22 If any section, paragraph or clause in this Agreement shall be held to be invalid or unenforceable in any jurisdiction, in which this Agreement is being performed, then the meaning of such section, paragraph or clause shall be so constructed so as to render it enforceable to the extent feasible and if no feasible interpretation would save such section, paragraph or clause it shall be severed from the Agreement. If such paragraph or clause is considered an essential element of this Agreement, the parties shall promptly negotiate a replacement thereof. In the event the parties are unable to agree upon the replacement within 30 (thirty) days of the final rendering such terms invalid or unenforceable, …..Ltd may terminate this Agreement upon 30 (thirty) days written notice.

Entire Contract:

23.1 This Agreement and documents attached herewith constitute the entire contract between the Parties with respect to the subject matter hereof.

23.2 No changes, amendments, modifications or waiver of any of the terms and conditions hereof shall be valid unless reduced to writing and signed by duly authorised representatives of both parties hereto.


24. Any notice, request, consent, waiver or other communication required or permitted hereunder shall be effective only if it is in writing and shall be deemed received by the Party to which it is sent (i) upon delivery when delivered by hand, (ii) three days after being sent, , by any courier with a reliable system for tracking delivery, (iii) when transmitted, if sent by confirmed facsimile, or (iv) 14 days after the date sent, if sent by certified or registered mail, postage prepaid, return receipt requested, addressed as follows:

If to ……Ltd: ----------------



, Bangalore-560 058

If to A & B Associates: Director


Bangalore – 560 001.


25. Failure by ….Ltd to enforce at any time or for any period any one or more of the terms or conditions of this Agreement shall not be a waiver of them or of the right at any time subsequently to enforce all terms and conditions of this agreement.


26. Subject to provisions of Clause 20 the Courts in Bangalore will have the exclusive jurisdiction to entertain and try any dispute hereunder.



A & B Associates shall provide the Support Services as required by ….Ltd. ….Ltd reserves the right to change the Scope of Service (“SOS”) at any time during the term of the Agreement and A & B Associates agrees to abide by the changed SOS. A & B Associates shall perform a broad level of Services, including, but not limited to the following:

(1) Administration Management Services: Undertake to manage administration of office communications including but not restricted to front office management as required by and to the full satisfaction of Customer.

(2) Database Management Services: Manage, analyse and provide information to assist in Customer decision-making processes through database creation and management in line with data inputs as required by Customer to conduct its business efficiently.

(3) IT Support Services: Maintain IT infrastructure at premises of the ……Ltd to the satisfaction of …Ltd. Activities will include all IT related infrastructure support in accordance with requirements of internal IT of the company to ensure continuous uptime of all equipment and related support infrastructure.

(4) Marketing Support Services: Understanding the marketing process, proactively building robust processes for tracking and monitoring marketing targets against predetermined budget forecasts. Building the requisite network to ensure growth in business in line with target deliverables. Ensuring adherence to company policy on marketing and using the tools and techniques as prescribed by management to undertake this task.

(5) Accounting Support Services: Undertake to monitor task such as book reconciliation, commercial functions like accounts payable and receivable, conduct internal audits in line with accounting policies of the company and do all that is required by management from time to time to assist with book keeping, audit and financial management.

(6) Sales Coordination Activities: Assist marketing in execution of market penetration strategies on the ground through mapping of the requisite process, system checks and tools required to coordinate and effective sell products to prospective clients. In doing so abide by the code of conduct and policies governing sales transactions as indicated by the management from time to time.

(7) Front Office support: Assist front office coordination for ……Ltd in terms of handling the activities at the reception desk and coordination involved for the same.

(8) Manufacturing Management Services:- Support services to ….Ltd by providing adequate, qualified man power resources, technical support if any required by ……Ltd from time to time which includes but not limited to support services in the areas of shop floor, stores, raw materials, finished goods etc.

(9) Residual Services:- Any other services as required by …..Ltd from time to time upon mutually agreed scope of services.


Service Fee

Service charges and / or other charges as payable under Clause 6.1 of this Agreement by ……Ltd to A & B Associates shall be as follows:

1. Service Charges:- …..Ltd shall pay such amount as services as fixed by …..Ltd from time to time for the concerned area / scope of services. The parties shall mutually agree for the service charges for the respective services to be provided by A & B Associates.

2. Other charges:- ……Ltd shall pay 8% of service charges as administrative charges apart from the service charges agreed between them.

The service charges and other charges payable by …..Ltd to A & B Associates shall be inclusive of all taxes and duties. The service charges and other charges stated supra is firm and no other sum of whatsoever nature shall be paid by …..Ltd unless otherwise agreed in writing.

IN WITNESS WHEREOF the Parties have executed these presents on the day and year herein above written.

For ……… LTD., For A & B Associates

………..I ………………





Hello, Can someone share the contract format which is between Staffing Company and Candidate. Regards - Sid
hi this prabhkaran form chennai working in an IT company and i need the Agreement / Contract formats for a staffing company ...... cheers., prabhakaran.S HR
Dear Sidheshwar,
I am in need of terms and conditions of contract staffing for IT [s/w].
Please let me know if you have any formats for the same. Will appreciate your timely help.
Kindly oblige and do the needful.
Thanks & Regards,

Terms and Conditions


We charge 8.33% for middle level and 10.5% for senior level of gross salary for each placement made through our Data Bank. The salary includes Basic, HRA, conveyance, P.F, LTA, Medical and other annual allowances and reimbursement paid annually as gross salary. In case of companies providing their own accommodation as a part of package (rented /company owned) we would be charging as per the rent agreement or on random basis. Apart from our professional charges, Service Tax as applicable (presently 12.24%) of the bill amount would be charged from our client.

In case of candidates selected through advertisements inserted through us, our fee will be 15 days take - home salary of the candidate. The actual cost of the advertisement will however be borne by the client.


1. Any candidates placed through us are subject to replacement, within a period of 3 months provided

(a) Payment in full has already been received as per our aforementioned terms.

(b) The candidate has left on his own accord i.e. his services were not terminated by the employer

[Note: Free replacement is for the same position; and not adjustable against another position.]


Payment due upon appointment of candidate(s), payable within 15 days of appointment.

UPON SELECTION: You will provide us with the following details of the candidate within 3 days from the date of offer:

i. Date of joining

ii. Designation offered

iii. Remuneration/Compensation (CTC) offered


The profile/CV sent to you shall remain exclusive property of ______________:

i. For a period of 12 months

ii. Unless you confirm (in writing) within 3 days from the receipt that the profile/CV sent is already in your stock or received through some other source

iii. If your organization seeks the contact detail of the candidate from us

iv. If your organization invites the candidate for the interview.


Traveling and Daily Allowances are to be paid by the client to the candidates attending interviews from outstation.

We hope you will find the Terms and conditions suitable and acceptable.

We would appreciate a written acknowledgment and acceptance of our above Terms & Conditions to formalize and initiate the process.

For any clarifications, we are available on the given phone numbers and email.

Thanking you,

Yours truly,

for ____________

Enclosure: A Requisition Form

Requisition Form

Date: _______________

I, ________________________ on behalf of M/s. ________________________________ ________________________________________ have thoroughly read all the terms and conditions and hereby confirm acceptance all the same intact.

Signature (with official stamp) _____________________

Name _____________________

Designation _____________________

Dear Sidhesh,

Kindly mail me the formats to the following id


Hii I have just started up my career in HR and as a project need to make an SOP for Subcontracting manpower supply for a construction company. Could someone please tell me important points i need to consider.

Hi Kumar,
I too am in the process of setting up a staffing Company.Can you please help me with all that you can in setting up the company.I am based at Ahmedabad and its a one man show.I really need help and its Imp for me to start this venture.PLZ help.I shall be obliged if you guide me with it .my contact

Hii all,

Iam just out of college and beginning my carrer in HR as a part of a project in my first job i was asked to make sample SOP for subcontracting manpower supply. I work in a construction firm.. I have done a SOP but would like to improvise it... it is attached herewith please take some time to review it with corrections.
Also it would be great if you could give me sample Close out checklist and Subcontracting questionnaires.



Towards the growth of an organization it is imperative that competent manpower is made available at the required time. Direct recruitment and selection process may not prove cost effective at all aspects of supplying Manpower. Subcontracting manpower supply is a viable method to ensure cost- effective and competent staffing.
In this context, it may be defined as all formal contractual agreements with any third party to fulfill Manpower requirements.

This document describes ADCC JV policy and procedures on Subcontracting Manpower Supply. It establishes guidelines to be followed when entering into a contractual agreement with a third party for the supply of manpower and lays down responsibilities of various departments in ensuring a smooth process of Subcontracting.

This statement applies to all recruitment needs that could be considered for subcontracting. It is to be especially undertaken when the Manpower required is for a short term or when immediate needs for labor occurs which makes direct recruitment expensive and time consuming.

Subcontracting Process

a) Need for a Subcontract:
The Human Resource Department is responsible for identifying the need for the services of a subcontractor should be identified after a detailed analysis of the Manpower requirements. Upon deciding the need for a subcontractor the Human Resource Department should source for appropriate subcontractors and submit a Request for Proposal. (RFP)

b) Obtaining Management Approval:

Management approval is required for all cases of subcontracting. Ideally, the proposal should outline the need and scope of a subcontractor and also justify the use of a subcontractor for the case.

c) Implementation of the Contract:
It is the Human Resource Department’s responsibility to decide the terms and conditions of the contract in the most beneficial fashion.

1. Selection Process of Sub-contractors:

It is the company policy to follow a selection process that is exhaustive and carefully tailored in order to select Subcontractors that are fit for the service and meet the company standards of Quality and HSE.

Items of financial and operational nature which dictate the commercial relationship between the two parties are not covered in these guidelines. Examples are contractual clauses like pricing, payment mode etc.

Pre- Awarding a Subcontract: Proposal that require subcontracting should include the following:

An analysis of various proposals from a minimum of three subcontractors should be considered prior awarding a subcontract.

Each proposal should be reviewed for conformance with basic requirements of an subcontractor and in addition be studied in detail based on the following criteria:

1.1 Period of Performance:
All proposals should be subjected to analysis based on the period required for supplying manpower and the proposal with least performance period and cost effective should be selected.

1.2 Area of Specialty:
Proposals from subcontractor that have previous successful association with the projects that require same or similar talent pool should be given priority.

1.3 Reputation of the Subcontractor:
Before selection of a subcontractor the company should take into consideration the Image, market reputation and accreditation of the proposed subcontractor such that it does not adversely affect the company image.

1.4 Competency analyses of the Subcontractor:
To establish the competency of the subcontractors a thorough check on the past track record is advised. In order to determine if they are suitable to perform the needs of the company the following records should be verified:
  • Manpower sources and list of Associates
  • Registration of the subcontractor and its associates
  • Any previous legal cases material to the company should be studied.
  • Qualifications of the Key personnel of the company

1.5 Compliance with Regulations
The subcontractor should be in compliance with all the relevant national and international laws relating to Manpower supply.
At ADCC special attention to compliance of the Subcontractor in the following areas is essential:
  • The company of the Subcontractor should have the required operating/ Trade licenses.
  • The company should be able to provide detailed reports of the value and nature of previous jobs completed.
  • The company should be able to provide certification in effect to meeting of the schedules in Manpower supply at a minimum of three previous jobs.
  • The company should be able to provide evidence of credibility in staffing competent personnel
  • The company should disclose material facts relevant to associating with them, an example would be if the subcontractor intends to further subcontract the manpower supply or use Associates. Any such details should be made available to the company when required.
  • The company should pay special care to ADCC JV’s policy of Employee welfare, Safety and provide quality standards of accommodation, medical and other amenities.

The use of Questionnaire could be useful in analyzing the subcontractors based on the above mentioned criteria.
After the successful analyses of the questionnaire from at least three different subcontractors, the most competent, flexible and cost- effective proposal should be accepted.

The final selection of the subcontractor should be made by the Human Resource department after verification from the Accounts department and approval of the Management.

Execution Of the contract:
After the selection of a subcontractor the Human Resource department undertakes the responsibility of negotiation and achieving an agreement with the Sub contractor.

Upon reaching an agreement the Commercial department drafts a contract and two copies are made for each both sighed by the contracting parties and complete other legal formalities as required.
A copy of the agreement should be recorded by the administrative department.
The administrative department is also responsible for maintaining a tracking sheet that details the following:
  • Start and End date of the contract
  • Budget amount
  • Details of invoices
  • Re-imbursements if any
  • And other business communication with the subcontractor

Close out:-
The subcontract agreement describes final administrative requirement for completing the work. These include delivery of final reports, performance and financial reports, report of invoices and a final audit report.

A subcontract closeout checklist must be completed for each subcontract. This provides verification and certification that all required reports have been received and accepted.

Responsibilities for execution of the Contract:

Determining the need for the subcontract
Suggesting the Source of potential subcontractors
Submitting RFP

Human Resource
Reviewing quotations
(1) Technical
(2) Cost affectivity
(3) Selection of subcontractor

Human Resource Department
Accounts Department
Human Resource Department

Obtaining Management Approval
Human Resource Department

Preparing Subcontract Agreement
Human Resource Department
Commercial Department
Approving all Invoices
Human Resource Department

Requesting Audits
Human Resource Department
Accounts Department
Administration Department
Maintaining Official Communication with the Subcontractor and a tracking sheet
Human Resource Department
Administration Department

Close out Review
Human Resource Department
Accounts Department
Internal Auditor

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