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Operation And Maintenance Contract for Indonesia

Operation And Maintenance Contract Template for Indonesia

An Operation and Maintenance Contract governed by Indonesian law establishes the legal framework for the provision of operational and maintenance services for facilities or infrastructure. The document details the responsibilities of the O&M contractor, performance standards, compensation structure, and risk allocation while ensuring compliance with Indonesian regulations, including manpower laws, environmental requirements, and safety standards. It incorporates specific provisions required under Indonesian civil law and relevant sector-specific regulations, providing a comprehensive framework for facility operations while addressing local content requirements and business practices specific to the Indonesian market.

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Operation And Maintenance Contract

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What is a Operation And Maintenance Contract?

The Operation and Maintenance Contract is essential for businesses operating facilities or infrastructure in Indonesia that require professional operation and maintenance services. This document is typically used when a facility owner wants to outsource the day-to-day operation and maintenance of their facility to a specialized contractor while maintaining specific performance standards and regulatory compliance. The contract must align with Indonesian legal requirements, including the Civil Code, manpower regulations, environmental laws, and sector-specific regulations. It establishes the scope of services, performance metrics, risk allocation, and compensation structure while incorporating local content requirements and business practices. The document is particularly crucial for complex facilities where technical expertise and systematic maintenance are essential for optimal performance and regulatory compliance.

What sections should be included in a Operation And Maintenance Contract?

1. Parties: Identification of the contracting parties - the facility owner/operator and the O&M contractor

2. Background: Context of the agreement, facility description, and purpose of the O&M services

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the contract

4. Scope of Services: Detailed description of O&M services, including operational responsibilities and maintenance obligations

5. Term and Commencement: Contract duration, commencement date, and conditions precedent

6. Contractor Obligations: Key responsibilities and obligations of the O&M contractor

7. Owner Obligations: Key responsibilities and obligations of the facility owner

8. Performance Standards: Required service levels, KPIs, and performance metrics

9. Personnel and Staffing: Requirements for contractor's personnel, key positions, and staffing levels

10. Compensation and Payment: Fee structure, payment terms, and invoicing procedures

11. Health, Safety and Environment: HSE requirements and compliance obligations

12. Reporting and Records: Required reports, documentation, and record-keeping obligations

13. Insurance and Liability: Insurance requirements and allocation of liabilities

14. Force Majeure: Force majeure events and their consequences

15. Default and Termination: Events of default, remedies, and termination provisions

16. Handover: End of contract transition and facility handover requirements

17. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

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

19. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Operation And Maintenance Contract?

1. Intellectual Property: Required when the O&M services involve significant IP rights or proprietary systems

2. Emergency Response: Detailed emergency procedures, needed for high-risk facilities or critical infrastructure

3. Environmental Management: Detailed environmental obligations, required for facilities with significant environmental impact

4. Security Requirements: Specific security provisions, needed for sensitive or high-security facilities

5. Local Content: Local content requirements, needed when specific Indonesian local content rules apply

6. Training and Knowledge Transfer: Required when the contract includes significant training obligations

7. Spare Parts Management: Detailed provisions for spare parts when critical to facility operation

8. Modifications and Improvements: Required when the contractor may make facility modifications

What schedules should be included in a Operation And Maintenance Contract?

1. Scope of Services: Detailed technical description of all O&M services

2. Facility Description: Technical specifications and details of the facility

3. Performance Standards and KPIs: Detailed performance metrics and measurement methodologies

4. Fee Schedule: Detailed breakdown of fees, rates, and payment calculations

5. Required Insurance: Specific insurance types and coverage requirements

6. Form of Reports: Templates and formats for required reports

7. HSE Requirements: Detailed health, safety, and environmental procedures

8. Personnel Requirements: Key positions, qualifications, and staffing requirements

9. Maintenance Procedures: Detailed maintenance schedules and procedures

10. Emergency Procedures: Detailed emergency response procedures

11. Handover Requirements: Detailed specifications for end-of-contract handover

12. Forms of Guarantees: Templates for required performance or payment guarantees

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions













































Clauses









































Relevant Industries

Power Generation

Oil and Gas

Manufacturing

Infrastructure

Water and Wastewater

Mining

Healthcare Facilities

Transportation

Industrial Processing

Renewable Energy

Commercial Buildings

Telecommunications

Relevant Teams

Operations

Maintenance

Engineering

Legal

Procurement

Health Safety Environment

Finance

Risk Management

Commercial

Technical Services

Quality Assurance

Compliance

Project Management

Relevant Roles

Operations Director

Maintenance Manager

Facility Manager

Technical Director

Contract Manager

HSE Manager

Project Manager

Chief Operating Officer

Plant Manager

Engineering Manager

Procurement Manager

Risk Manager

Commercial Director

Legal Counsel

Financial Controller

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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