Agreement Between Principal Employer And Contractor Template for Indonesia

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Key Requirements PROMPT example:

Agreement Between Principal Employer And Contractor

"I need an Agreement Between Principal Employer And Contractor for engaging a construction contractor to build a new manufacturing facility in Jakarta, with work commencing March 2025, including specific provisions for local content requirements and environmental compliance."

Document background
The Agreement Between Principal Employer And Contractor is a critical document used in Indonesian business operations when engaging external contractors for specific projects or services. This agreement type is particularly important given Indonesia's strict regulations regarding contractor relationships, as governed by Law No. 13 of 2003 on Manpower and related regulations. It's designed to establish clear parameters for the working relationship, protect both parties' interests, and ensure compliance with local legal requirements. The document typically covers essential elements such as scope of work, payment terms, performance standards, safety requirements, and risk allocation, while incorporating specific Indonesian regulatory requirements such as mandatory social security provisions and workplace safety standards. It's commonly used across various industries from construction to professional services, and can be adapted to suit different scales of engagement, from small project-based work to large-scale ongoing services.
Suggested Sections

1. Parties: Identification of the Principal Employer and the Contractor, including their full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, brief description of the Principal Employer's business, and the purpose for engaging the Contractor

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

4. Scope of Work: Detailed description of the services or work to be performed by the Contractor

5. Term and Timeline: Duration of the agreement, including start date, completion date, and any milestone dates

6. Payment Terms: Compensation details, payment schedule, invoicing requirements, and payment methods

7. Contractor's Obligations: Key responsibilities and obligations of the Contractor, including quality standards and compliance requirements

8. Principal's Obligations: Responsibilities of the Principal Employer, including provision of access, information, and materials

9. Health and Safety: Safety requirements and procedures in accordance with Indonesian regulations

10. Insurance and Indemnity: Insurance requirements and indemnification provisions

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination, notice requirements, and consequences of termination

13. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Intellectual Property Rights: Required when the contractor's work involves creation of intellectual property or use of existing IP

2. Equipment and Materials: Necessary when the contract involves provision or use of specific equipment or materials

3. Performance Security: Include when requiring bank guarantees or performance bonds

4. Force Majeure: Important for long-term contracts or where external factors could significantly impact performance

5. Environmental Compliance: Required for contracts involving activities with environmental impact

6. Subcontracting: Include when subcontracting needs to be addressed or regulated

7. Local Content Requirements: Necessary for contracts subject to Indonesian local content regulations

8. Training and Knowledge Transfer: Include when the contract involves transfer of skills or knowledge to Principal's staff

Suggested Schedules

1. Schedule 1 - Scope of Work: Detailed technical specifications and requirements of the work to be performed

2. Schedule 2 - Payment Schedule: Detailed breakdown of payments, milestones, and payment conditions

3. Schedule 3 - Time Schedule: Detailed project timeline, milestones, and completion dates

4. Schedule 4 - Key Personnel: List of key personnel from both parties involved in the project

5. Schedule 5 - Equipment and Materials: Detailed list of equipment and materials to be used or provided

6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements

7. Appendix A - Required Insurance: Specific insurance requirements and coverage amounts

8. Appendix B - Forms and Templates: Standard forms for progress reports, invoicing, and other routine communications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Construction

Manufacturing

Mining

Oil and Gas

Technology Services

Industrial Services

Facilities Management

Engineering

Infrastructure Development

Telecommunications

Maintenance Services

Professional Services

Relevant Teams

Legal

Procurement

Operations

Human Resources

Risk and Compliance

Project Management

Commercial

Facilities Management

Contract Administration

Relevant Roles

Legal Counsel

Procurement Manager

Contract Manager

Project Manager

Operations Director

Human Resources Director

Chief Operating Officer

Facilities Manager

Commercial Director

Risk Manager

Compliance Officer

General Manager

Technical Director

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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