Document background
The Cost Fixed Fee Contract is commonly used in Indonesia when parties seek price certainty and clear scope definition in their business relationships. This contract type is particularly suitable for projects where the scope can be clearly defined upfront and the service provider is willing to take on the risk of cost variations. It is governed by Indonesian law, particularly the Civil Code (KUH Perdata) and relevant sector-specific regulations, and must comply with local business requirements including foreign investment restrictions where applicable. The document typically includes comprehensive details about service scope, quality standards, delivery timelines, payment terms, and risk allocation. It's especially relevant for construction, consulting, and professional services sectors where budget certainty is crucial for project planning and execution.
