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Transport Subcontractor Agreement Template for Malaysia

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Key Requirements PROMPT example:

Transport Subcontractor Agreement

"I need a Transport Subcontractor Agreement for my logistics company based in Kuala Lumpur, where we'll be engaging local truck owners to handle last-mile deliveries for e-commerce products, with operations starting March 2025."

Document background
The Transport Subcontractor Agreement is essential for businesses in Malaysia that need to formally engage third-party transport providers for their logistics operations. This document is particularly relevant when a main transportation or logistics company needs to supplement its capacity or expand its service coverage through subcontractors. The agreement ensures compliance with Malaysian transportation laws, including the Land Public Transport Act 2010 and Commercial Vehicles Licensing Board Act 1987, while protecting both parties' interests. It covers crucial aspects such as service standards, safety requirements, insurance obligations, payment terms, and regulatory compliance. This template is designed for use in the Malaysian jurisdiction and incorporates local legal requirements while following industry best practices for transport subcontracting arrangements.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor with full legal names and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of transportation services to be provided by the subcontractor

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Subcontractor Obligations: Key responsibilities including compliance with laws, maintenance of licenses, and service standards

7. Main Contractor Obligations: Responsibilities of the main contractor including provision of necessary information and support

8. Vehicle and Equipment Requirements: Specifications for vehicles and equipment to be used in service delivery

9. Safety and Compliance: Safety standards, regulatory compliance requirements, and reporting obligations

10. Rates and Payment Terms: Pricing structure, payment schedule, and invoicing requirements

11. Insurance and Liability: Required insurance coverage and allocation of liability between parties

12. Termination: Conditions and process for contract termination

13. Confidentiality: Protection of confidential information and trade secrets

14. Dispute Resolution: Process for resolving disputes between parties

15. General Provisions: Standard legal clauses including governing law, notices, and amendments

Optional Sections

1. Performance Metrics: Specific KPIs and performance standards - include when the contract requires detailed performance monitoring

2. Environmental Compliance: Special environmental requirements - include for green logistics or when handling hazardous materials

3. Training Requirements: Specific training obligations - include when specialized cargo or routes are involved

4. Fuel Surcharge Provisions: Fuel cost adjustment mechanisms - include when fuel price fluctuations are a significant concern

5. Subcontracting Rights: Right to further subcontract services - include when allowing for additional subcontracting tiers

6. Technology Requirements: Specific technology or software requirements - include when tracking or specialized systems are needed

7. Force Majeure: Provisions for unforeseen circumstances - include when operating in challenging environments or routes

Suggested Schedules

1. Schedule 1 - Service Locations: Detailed list of delivery routes, pickup and drop-off locations

2. Schedule 2 - Rate Card: Detailed pricing structure including base rates and additional charges

3. Schedule 3 - Vehicle Specifications: Detailed requirements for vehicles including age, capacity, and equipment

4. Schedule 4 - Service Level Agreement: Specific performance metrics, response times, and quality standards

5. Schedule 5 - Insurance Requirements: Detailed insurance coverage requirements and minimum coverage amounts

6. Schedule 6 - Operating Procedures: Standard operating procedures and compliance requirements

7. Appendix A - Required Documentation: List of required licenses, permits, and certificates

8. Appendix B - Health and Safety Guidelines: Specific safety procedures and requirements

9. Appendix C - Incident Reporting Forms: Standard forms for reporting accidents, incidents, and compliance issues

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























Clauses






























Relevant Industries

Logistics and Transportation

E-commerce

Manufacturing

Retail

Food and Beverage

Construction

Agriculture

Mining

Oil and Gas

Healthcare

Fast-Moving Consumer Goods (FMCG)

Industrial Distribution

Warehousing

Relevant Teams

Legal

Operations

Logistics

Procurement

Compliance

Risk Management

Supply Chain

Finance

Health and Safety

Fleet Management

Relevant Roles

Logistics Manager

Transport Operations Director

Supply Chain Manager

Fleet Manager

Procurement Manager

Contracts Manager

Operations Manager

Compliance Officer

Risk Manager

Business Development Manager

Regional Transport Manager

Logistics Coordinator

Supply Chain Director

Chief Operations Officer

Transport Safety Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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