The Fabrication Contract Agreement is essential for manufacturing relationships in Indonesia where one party (the Fabricator) agrees to manufacture or fabricate specific products, components, or equipment for another party (the Client). This document is typically used when engaging in custom manufacturing, equipment fabrication, or specialized production processes that require detailed specifications and quality controls. The agreement must comply with Indonesian legal requirements, including Law No. 3 of 2014 on Industry and related regulations governing manufacturing activities. It includes comprehensive terms covering technical specifications, quality standards, testing procedures, delivery requirements, warranties, and risk allocation, while incorporating necessary provisions for intellectual property protection and dispute resolution under Indonesian jurisdiction. The document is particularly important for protecting both parties' interests in complex manufacturing arrangements and ensuring clarity in responsibilities and deliverables.
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1. Parties: Identification of the contracting parties - the fabricator and the client
2. Background: Context of the agreement and general purpose of the fabrication arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the fabrication services to be provided
5. Technical Specifications: General technical requirements and standards to be met
6. Project Timeline: Delivery schedule, milestones, and completion dates
7. Price and Payment Terms: Pricing structure, payment schedule, and invoicing requirements
8. Quality Control and Inspection: Quality standards, testing procedures, and acceptance criteria
9. Materials and Equipment: Responsibilities for supply and management of materials and equipment
10. Warranties and Defects Liability: Warranty terms and obligations for defect rectification
11. Health, Safety and Environment: HSE requirements and compliance obligations
12. Intellectual Property: IP rights and obligations regarding designs and manufacturing processes
13. Confidentiality: Protection of confidential information and trade secrets
14. Force Majeure: Provisions for unforeseen circumstances and their handling
15. Termination: Conditions and procedures for contract termination
16. Dispute Resolution: Procedures for resolving disputes under Indonesian law
17. Governing Law: Confirmation of Indonesian law as governing law
18. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Insurance: Detailed insurance requirements - include if specific insurance coverage is needed beyond standard requirements
2. Performance Security: Requirements for performance bonds or bank guarantees - include for high-value contracts
3. Export/Import Requirements: Include if materials or finished products cross international borders
4. Site Access and Facilities: Include if fabrication occurs at client's site or specific facility requirements exist
5. Training and Support: Include if post-fabrication training or support is required
6. Subcontracting: Include if subcontracting will be permitted and under what conditions
7. Local Content Requirements: Include if subject to Indonesian local content regulations
1. Schedule 1 - Detailed Scope of Work: Comprehensive technical specifications and requirements
2. Schedule 2 - Price Schedule: Detailed breakdown of prices, rates, and payment milestones
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and deadlines
4. Schedule 4 - Quality Control Procedures: Specific testing and inspection requirements
5. Schedule 5 - Technical Drawings and Specifications: Detailed technical drawings and design specifications
6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements
7. Schedule 7 - Form of Performance Security: Template for performance bond or bank guarantee if required
8. Schedule 8 - Key Personnel: List of key personnel and their roles/responsibilities
9. Appendix A - Required Certifications: List of required certifications and compliance documents
10. Appendix B - Forms and Templates: Standard forms for progress reports, change orders, etc.
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