The Agreement Between Two Contractors is a essential legal document used when two independent contractors or contracting companies wish to formalize their business relationship under Indonesian law. This document is particularly relevant for projects requiring specialized expertise, shared responsibilities, or collaborative work arrangements. It addresses key aspects required by Indonesian regulations, including Law No. 2 of 2017 on Construction Services and the Indonesian Civil Code, while providing comprehensive coverage of commercial terms, liability allocation, and operational requirements. The agreement is designed to protect both parties' interests while ensuring compliance with local legal requirements, making it suitable for various sectors from construction to professional services.
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1. Parties: Identification of both contractors, including their legal business names, registration numbers, and addresses
2. Background: Context of the agreement, relationship between the parties, and general purpose of the collaboration
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided by each contractor
5. Term and Timelines: Duration of the agreement and key project milestones
6. Payment Terms: Payment amounts, schedules, and methods
7. Rights and Obligations: Specific responsibilities and rights of each contractor
8. Performance Standards: Quality standards and performance metrics
9. Intellectual Property: Ownership and usage rights of any IP created during the collaboration
10. Confidentiality: Protection of confidential information and trade secrets
11. Liability and Indemnification: Allocation of risks and responsibilities for damages
12. Insurance: Required insurance coverage for each party
13. Termination: Conditions and procedures for ending the agreement
14. Dispute Resolution: Process for resolving disagreements, including jurisdiction under Indonesian law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Health and Safety: Required for agreements involving on-site work or hazardous activities
2. Equipment and Materials: Include when contractors need to specify responsibility for providing and maintaining equipment
3. Subcontracting: Include when either party may need to subcontract portions of work
4. Force Majeure: Particularly relevant in Indonesia due to natural disasters and political instability
5. Environmental Compliance: Required for projects with environmental impact
6. Local Content Requirements: Include when project must comply with Indonesian local content regulations
7. Currency and Exchange Rate: Include when dealing with international contractors or foreign currency payments
8. Anti-Corruption: Required for high-value contracts or government-related projects
1. Schedule A - Scope of Work: Detailed technical specifications and deliverables
2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, milestones, and rates
3. Schedule C - Timeline: Project schedule, milestones, and delivery dates
4. Schedule D - Key Personnel: List of key team members and their roles
5. Schedule E - Equipment and Materials: Detailed list of equipment and materials to be provided by each party
6. Schedule F - Performance Metrics: Specific KPIs and performance measurement criteria
7. Appendix 1 - Required Permits and Licenses: List of necessary permits and licenses under Indonesian law
8. Appendix 2 - Insurance Requirements: Detailed insurance specifications and coverage requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Engineering
Information Technology
Oil and Gas
Mining
Infrastructure
Manufacturing
Telecommunications
Professional Services
Energy
Real Estate Development
Industrial Projects
Transportation
Maritime Industry
Relevant Teams
Legal
Operations
Commercial
Procurement
Project Management
Risk and Compliance
Business Development
Technical Operations
Contract Administration
Finance
Relevant Roles
Project Manager
Contract Manager
Legal Counsel
Operations Director
Commercial Manager
Technical Director
Procurement Manager
Business Development Manager
Site Supervisor
Engineering Manager
Construction Manager
Risk Manager
Compliance Officer
Managing Director
Chief Operating Officer
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