Simple Subcontractor Agreement Template for Indonesia

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Key Requirements PROMPT example:

Simple Subcontractor Agreement

"I need a Simple Subcontractor Agreement under Indonesian law for a construction project in Jakarta, where we'll be subcontracting electrical installation works starting March 2025, with strict safety requirements and milestone-based payments."

Document background
The Simple Subcontractor Agreement is essential for businesses operating in Indonesia who need to engage subcontractors for specific project components or specialized services. This document type is particularly important given Indonesia's strict regulations on outsourcing and subcontracting relationships, including compliance with Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 19 of 2012. The agreement serves to clearly define the scope of work, responsibilities, payment terms, and compliance requirements while protecting both parties' interests. It's commonly used across various industries where project components need to be delegated to specialized service providers, ensuring clear accountability and risk allocation while maintaining compliance with local regulatory requirements.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor, including their legal names, registration numbers, and addresses

2. Background: Context of the agreement, including reference to the main contract and the need for subcontracting

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 subcontractor

5. Duration: Term of the agreement, including start date and completion date

6. Payment Terms: Payment amount, schedule, method, and conditions for payment

7. Obligations of the Subcontractor: Key responsibilities and duties of the subcontractor

8. Obligations of the Main Contractor: Key responsibilities and duties of the main contractor

9. Work Standards: Quality standards, compliance requirements, and performance metrics

10. Health and Safety: Safety requirements and compliance with Indonesian health and safety regulations

11. Insurance and Liability: Required insurance coverage and allocation of risks

12. Termination: Conditions and process for terminating the agreement

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. Dispute Resolution: Process for resolving disputes between parties

Optional Sections

1. Intellectual Property Rights: Include when the work involves creation or use of intellectual property

2. Confidentiality: Include when sensitive information will be shared between parties

3. Force Majeure: Include for longer-term contracts or when work is susceptible to external disruptions

4. Environmental Compliance: Include for work involving environmental impacts or requiring environmental permits

5. Equipment and Materials: Include when specific equipment or materials are to be provided by either party

6. Labor Requirements: Include when specific staffing or labor requirements need to be detailed

7. Performance Bond: Include when a performance guarantee is required

8. Assignment and Subcontracting: Include when there's a need to restrict or permit further subcontracting

Suggested Schedules

1. Schedule A - Scope of Works: Detailed specification of works to be performed

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

3. Schedule C - Timeline: Project schedule, milestones, and completion dates

4. Schedule D - Technical Specifications: Specific technical requirements and standards

5. Schedule E - Health and Safety Requirements: Detailed safety procedures and requirements

6. Appendix 1 - Required Permits and Licenses: List of required permits and licenses

7. Appendix 2 - Insurance Requirements: Detailed insurance requirements and coverage limits

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

Clauses
Relevant Industries

Construction

Manufacturing

Information Technology

Engineering

Infrastructure

Mining

Oil and Gas

Telecommunications

Facilities Management

Industrial Services

Logistics

Real Estate Development

Relevant Teams

Legal

Procurement

Operations

Project Management

Risk & Compliance

Commercial

Supply Chain

Construction Management

Technical Services

Contract Administration

Relevant Roles

Project Manager

Procurement Manager

Contract Manager

Legal Counsel

Operations Director

Construction Manager

Site Supervisor

Commercial Manager

Risk Manager

Compliance Officer

Technical Director

Business Development Manager

Supply Chain Manager

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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