The Monthly Retainer Contract serves as a fundamental legal instrument for establishing long-term professional service relationships in Indonesia. This document is typically used when a client requires ongoing, regular access to professional services, such as consulting, advisory, or technical support, on a recurring monthly basis. It ensures compliance with Indonesian legal requirements, including the Civil Code (KUHPerdata) and relevant business regulations, while providing a clear framework for service delivery, payment terms, and mutual obligations. The agreement is particularly valuable for businesses seeking to maintain consistent access to expertise while having predictable cost structures and service levels. It includes essential provisions for confidentiality, intellectual property protection, and dispute resolution, adapted to the Indonesian legal context.
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1. Parties: Identification of the service provider and client, including their full legal names, addresses, and company registration details if applicable
2. Background: Context of the agreement and brief description of why the parties are entering into this retainer arrangement
3. Definitions: Key terms used throughout the agreement defined for clarity and consistency
4. Scope of Services: Detailed description of the services to be provided under the retainer arrangement
5. Term and Renewal: Duration of the retainer agreement and provisions for renewal or extension
6. Retainer Fee and Payment Terms: Monthly fee amount, payment schedule, invoicing process, and any additional costs or expenses
7. Service Provider's Obligations: Key responsibilities and commitments of the service provider
8. Client's Obligations: Key responsibilities and commitments of the client
9. Performance Standards: Expected quality and standards for service delivery
10. Reporting and Communication: Requirements for regular updates, reports, and communication protocols
11. Confidentiality: Obligations regarding confidential information and trade secrets
12. Intellectual Property: Ownership and rights related to work products and pre-existing IP
13. Termination: Grounds and process for ending the agreement, notice periods, and consequences
14. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms
15. General Provisions: Standard boilerplate clauses including force majeure, entire agreement, and amendments
1. Non-Competition: Restrictions on competitive activities, used when the service provider may have access to sensitive business information
2. Data Protection: Specific provisions for handling personal data, required when services involve data processing
3. Insurance: Requirements for professional indemnity or other insurance, important for high-risk services
4. Service Credits: Performance-based credits or penalties, useful for services with specific measurable outcomes
5. Subcontracting: Terms for engaging subcontractors, needed if service provider may delegate work
6. Force Majeure: Detailed provisions for handling unforeseen circumstances, particularly relevant in long-term arrangements
7. Anti-Corruption: Compliance with anti-corruption laws, important for contracts with government entities or high-value services
8. Currency and Tax Provisions: Detailed provisions for international arrangements or complex payment structures
1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and performance metrics
2. Schedule B - Fee Schedule: Detailed breakdown of fees, including any variable components or additional charges
3. Schedule C - Service Levels: Specific performance standards, response times, and quality metrics
4. Schedule D - Key Personnel: List of key team members and their roles in service delivery
5. Schedule E - Reporting Requirements: Templates and specifications for required reports and updates
6. Appendix 1 - Communication Protocol: Detailed procedures for regular communication and escalation paths
7. Appendix 2 - Compliance Requirements: Specific regulatory or industry compliance requirements applicable to the services
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