Subcontracting and SD&L Undertaking Clause Samples

The 'Subcontracting and SD&L Undertaking' clause governs the conditions under which a party may subcontract its obligations and ensures compliance with specific Supplier Diversity and Local (SD&L) requirements. Typically, this clause requires the contracting party to obtain prior consent before engaging subcontractors and mandates that any subcontractors also adhere to SD&L commitments, such as using local suppliers or meeting diversity targets. Its core function is to maintain oversight and accountability for subcontracted work while promoting diversity and local participation, thereby mitigating risks related to non-compliance and supporting broader social or economic objectives.