The Fee Developer Agreement serves as a critical document in Indonesian property development projects where a property owner engages a professional developer to manage and execute a development project for a fee, rather than the developer taking an ownership position. This agreement is essential in situations where specialized development expertise is required but the property owner wishes to retain full ownership and control of the project. The document comprehensively addresses all aspects of the development process, including project management, regulatory compliance, risk allocation, and fee structures, while ensuring adherence to Indonesian construction and investment laws. It is particularly relevant in the context of Indonesia's growing real estate sector and increasing complexity of development projects, especially in major urban centers where strict regulatory compliance and professional project management are crucial.
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1. Parties: Identification of the property owner/client and the fee developer, including their complete legal names, addresses, and registration details
2. Background: Context of the development project, including property details, development objectives, and the basis for engaging the fee developer
3. Definitions: Definitions of key terms used throughout the agreement, including technical terms, financial concepts, and project-specific terminology
4. Appointment and Scope of Services: Detailed description of the fee developer's appointment and comprehensive scope of development services to be provided
5. Developer's Obligations: Specific responsibilities and duties of the fee developer, including reporting, supervision, and management obligations
6. Client's Obligations: Responsibilities of the property owner/client, including provision of information, approvals, and access
7. Development Fee Structure: Detailed breakdown of fee calculation, payment terms, milestones, and any performance-based incentives
8. Project Timeline: Key dates, milestones, and completion requirements for the development project
9. Approvals and Permits: Process for obtaining necessary governmental and regulatory approvals, including responsibility allocation
10. Representations and Warranties: Standard representations and warranties from both parties regarding capacity, authority, and compliance
11. Insurance and Indemnification: Insurance requirements and mutual indemnification provisions
12. Term and Termination: Duration of the agreement, renewal provisions, and grounds for termination
13. Dispute Resolution: Process for resolving disputes, including mediation, arbitration, and jurisdiction provisions under Indonesian law
14. Confidentiality: Provisions regarding confidential information and its protection
15. Force Majeure: Circumstances constituting force majeure and their consequences
16. General Provisions: Standard boilerplate clauses including notices, amendments, assignment, and governing law
1. Environmental Compliance: Specific provisions regarding environmental obligations and compliance, required when the project has significant environmental impacts
2. Local Community Relations: Provisions for managing community relations and social impact, important for large-scale developments
3. Intellectual Property Rights: Required when the development involves unique designs or proprietary methods
4. Foreign Investment Provisions: Required when the fee developer or client is a foreign entity, addressing specific foreign investment requirements
5. Change Management: Detailed procedures for handling project changes, recommended for complex developments
6. Security Arrangements: Required when performance bonds or other security measures are needed
7. Marketing and Leasing: Included when the fee developer's scope includes marketing or leasing responsibilities
1. Schedule A - Property Details: Detailed description of the property, including legal description, site plans, and existing conditions
2. Schedule B - Scope of Services: Detailed breakdown of all services to be provided by the fee developer
3. Schedule C - Fee Structure and Payment Schedule: Detailed calculation methodology for fees, payment milestones, and incentive structures
4. Schedule D - Project Timeline: Detailed project schedule with milestones, deadlines, and critical path items
5. Schedule E - Key Personnel: List of key personnel from both parties, including roles and responsibilities
6. Schedule F - Required Approvals and Permits: Comprehensive list of required governmental and regulatory approvals
7. Schedule G - Insurance Requirements: Detailed insurance requirements including types, coverage amounts, and durations
8. Schedule H - Project Budget: Detailed project budget including cost categories and contingencies
9. Appendix 1 - Required Forms and Templates: Standard forms for reporting, change orders, and other project documentation
10. Appendix 2 - Technical Specifications: Detailed technical requirements and specifications for the development
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