Standard Fee Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for professional service fees between parties. This agreement outlines the fee structure, payment terms, service scope, and obligations of both parties while ensuring compliance with Indonesian Civil Code (KUHPerdata) and relevant local regulations. It includes provisions for dispute resolution, confidentiality, and termination, adapted to the Indonesian business and legal context, with specific consideration for local business practices and regulatory requirements.

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What is a Standard Fee Agreement?

The Standard Fee Agreement serves as a fundamental legal instrument for establishing professional service relationships in Indonesia. This document is essential when engaging service providers, consultants, or professional firms, providing a structured framework for fee arrangements while ensuring compliance with Indonesian law, particularly the Civil Code (KUHPerdata) and relevant business regulations. It is commonly used for various professional services, from consulting to technical services, and includes comprehensive details about service scope, fee structures, payment terms, and party obligations. The agreement is designed to protect both service providers and clients while maintaining clarity about financial obligations and service expectations within the Indonesian legal framework.

What sections should be included in a Standard Fee Agreement?

1. Parties: Identification and details of the service provider and client, including their legal names, registration numbers, and addresses

2. Background: Context of the agreement and brief description of why the parties are entering into this fee arrangement

3. Definitions: Definitions of key terms used throughout the agreement to ensure clear interpretation

4. Scope of Services: Detailed description of the services to be provided under the agreement

5. Fee Structure: Detailed breakdown of fees, including base fees, additional charges, and payment calculations

6. Payment Terms: Payment schedule, method of payment, and currency specifications

7. Duration and Termination: Term of the agreement and conditions for termination by either party

8. Obligations of the Service Provider: Responsibilities and commitments of the service provider

9. Obligations of the Client: Responsibilities and commitments of the client

10. Confidentiality: Provisions regarding the handling of confidential information

11. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

12. General Provisions: Standard contractual provisions including notices, amendments, and entire agreement clause

What sections are optional to include in a Standard Fee Agreement?

1. Intellectual Property Rights: Include when services involve creation or use of intellectual property

2. Force Majeure: Include for longer-term agreements or when service delivery could be affected by external events

3. Insurance: Include when services involve significant risks or regulatory requirements for insurance

4. Performance Metrics: Include when fee structure is tied to specific performance indicators

5. Subcontracting: Include when service provider may need to engage subcontractors

6. Data Protection: Include when services involve processing of personal or sensitive data

7. Non-Competition: Include when protecting against competitive activities is relevant

8. Service Level Agreement: Include when specific service levels need to be maintained

What schedules should be included in a Standard Fee Agreement?

1. Schedule A - Scope of Services: Detailed breakdown of services to be provided, including specific deliverables and timelines

2. Schedule B - Fee Schedule: Detailed fee structure, including rates, calculation methods, and any variable components

3. Schedule C - Payment Schedule: Timeline for payments, including milestone-based payments if applicable

4. Schedule D - Service Level Requirements: Specific metrics and standards for service delivery, if applicable

5. Appendix 1 - Contact Details: Key contact persons and their details for both parties

6. Appendix 2 - Required Documentation: List of documents required for service delivery or payment processing

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

Cost

Free to use

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