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Project Alliance Agreement Template for Indonesia

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Key Requirements PROMPT example:

Project Alliance Agreement

"I need a Project Alliance Agreement for a renewable energy infrastructure project in Central Java, Indonesia, between our company (as project owner), two international construction contractors, and a local engineering firm, with special focus on environmental compliance and local content requirements."

Document background
The Project Alliance Agreement is utilized in Indonesia for complex, high-value projects where traditional contracting approaches may be insufficient to manage project risks and opportunities effectively. This agreement type is particularly relevant when projects require close collaboration between multiple parties, innovative solutions, and shared risk management approaches. The document establishes a no-blame culture, unanimous decision-making processes, and transparent commercial frameworks while ensuring compliance with Indonesian legal requirements, including Law No. 2 of 2017 on Construction Services and related regulations. It includes comprehensive provisions for governance structures, commercial mechanisms, and risk-sharing arrangements, making it suitable for major infrastructure, energy, and construction projects where alignment of objectives between parties is crucial for project success.
Suggested Sections

1. Parties: Identification of all alliance participants, including owner and non-owner participants

2. Background: Context of the project alliance, project objectives, and alliance principles

3. Definitions and Interpretation: Definitions of key terms and interpretation principles

4. Alliance Objectives and Principles: Detailed statement of alliance objectives and governing principles for collaboration

5. Formation and Operation of Alliance: Establishment of the alliance, commencement, and duration

6. Governance Structure: Alliance leadership team, management team, and their respective roles and responsibilities

7. Decision Making and Issue Resolution: Processes for unanimous decision-making and resolving disagreements

8. Project Scope and Implementation: Detailed description of project scope, deliverables, and implementation approach

9. Commercial Framework: Pain/gain share mechanisms, target cost, and compensation model

10. Risk and Opportunity Sharing: Allocation and management of risks and opportunities among participants

11. Performance Management: Key performance indicators, monitoring, and reporting requirements

12. Resources and Project Team: Resource commitments, key personnel, and team structure

13. Insurance and Liability: Insurance requirements and liability arrangements between parties

14. Intellectual Property: Ownership and usage rights of project IP and pre-existing IP

15. Confidentiality and Publicity: Confidentiality obligations and public communications protocol

16. Default and Termination: Events of default, termination rights, and consequences

17. General Provisions: Standard boilerplate clauses including notices, governing law, and amendments

Optional Sections

1. Local Content Requirements: Section addressing Indonesian local content requirements, used when project involves significant local content obligations

2. Environmental and Social Responsibility: Specific environmental and social commitments, used for projects with significant environmental impact

3. Government Interface: Procedures for dealing with government authorities, used when project requires significant government interaction

4. Community Engagement: Community relations and stakeholder management, used for projects with significant community impact

5. Force Majeure: Specific force majeure provisions, used when standard provisions need enhancement due to project-specific risks

6. Anti-Corruption and Compliance: Detailed anti-corruption provisions, used when project involves heightened compliance risks

7. Cultural Heritage: Protection of cultural heritage sites, used when project may impact cultural sites

8. Innovation and Value Engineering: Specific provisions for encouraging and managing innovations, used for complex technical projects

Suggested Schedules

1. Project Scope: Detailed description of project works and deliverables

2. Commercial Framework Details: Detailed calculations for pain/gain share, target cost, and fee structure

3. Governance Structure: Detailed organizational structure and governance procedures

4. Key Performance Indicators: Detailed KPIs and measurement methodology

5. Insurance Requirements: Specific insurance requirements and policies

6. Form of Accession Deed: Template for new parties joining the alliance

7. Project Program: Project timeline, milestones, and schedule

8. Site Information: Details of project site and conditions

9. Personnel and Resources: Key personnel commitments and resource requirements

10. Technical Standards: Applicable technical standards and specifications

11. Forms of Certificates: Template certificates for various project purposes

12. Permits and Approvals: List of required permits and responsibilities for obtaining them

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

Relevant legal definitions



























































Clauses



































Relevant Industries

Infrastructure

Construction

Energy

Mining

Oil and Gas

Transportation

Public Works

Industrial Development

Urban Development

Renewable Energy

Water and Sanitation

Telecommunications

Relevant Teams

Legal

Commercial

Project Management

Procurement

Finance

Operations

Risk Management

Compliance

Technical Services

Business Development

Executive Leadership

Relevant Roles

Project Director

Commercial Manager

Legal Counsel

Contract Manager

Project Manager

Alliance Manager

Chief Executive Officer

Construction Manager

Design Manager

Risk Manager

Financial Controller

Procurement Manager

Technical Director

Operations Director

Compliance Officer

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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