The Annual Subcontractor Agreement is essential for businesses operating in Indonesia that require ongoing third-party services or labor support. This document is specifically designed to comply with Indonesian regulations, particularly Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 19 of 2012 on outsourcing requirements. It provides a structured framework for managing subcontractor relationships over a one-year period, including detailed provisions for service delivery, worker protection, compliance requirements, and risk management. The agreement is particularly crucial given Indonesia's strict regulations on outsourcing and subcontracting relationships, requiring careful attention to worker rights, social security obligations, and business licensing requirements.
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1. Parties: Identification of the main contractor and subcontractor, including their legal entity details and registration numbers
2. Background: Context of the agreement, relationship between parties, and general purpose of the subcontracting arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided by the subcontractor
5. Term and Renewal: Duration of the agreement, renewal terms, and notice periods
6. Payment Terms: Compensation, payment schedule, invoicing requirements, and payment methods
7. Performance Standards: Quality standards, KPIs, and performance expectations
8. Obligations of the Subcontractor: Key responsibilities, compliance requirements, and operational duties
9. Obligations of the Main Contractor: Main contractor's responsibilities, including provision of information and access
10. Compliance with Laws: Requirements for compliance with Indonesian labor laws, permits, and regulations
11. Insurance and Liability: Insurance requirements and allocation of risks between parties
12. Confidentiality: Protection of confidential information and trade secrets
13. Termination: Grounds for termination, notice requirements, and consequences
14. Dispute Resolution: Process for resolving disputes under Indonesian law
15. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Health and Safety: Detailed health and safety requirements for high-risk industries or construction work
2. Environmental Compliance: Environmental obligations for projects with environmental impact
3. Intellectual Property Rights: IP provisions for technical or creative services
4. Equipment and Materials: Provisions regarding supply and maintenance of equipment when relevant
5. Security Requirements: Additional security measures for sensitive projects or locations
6. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects
7. Training Requirements: Specific training obligations for specialized services
8. Quality Control Procedures: Detailed quality control processes for manufacturing or technical services
1. Schedule A - Scope of Work: Detailed specification of services, deliverables, and technical requirements
2. Schedule B - Pricing and Payment: Detailed rate cards, payment schedules, and pricing mechanisms
3. Schedule C - Performance Metrics: Specific KPIs, measurement methods, and reporting requirements
4. Schedule D - Required Permits and Licenses: List of mandatory permits and licenses under Indonesian law
5. Schedule E - Insurance Requirements: Detailed insurance types and coverage amounts required
6. Schedule F - Health and Safety Standards: Specific health and safety requirements and procedures
7. Appendix 1 - Contact Details: Key personnel and emergency contact information
8. Appendix 2 - Required Forms: Standard forms for reports, invoices, and other routine communications
Relevant legal definitions
Clauses
Relevant Industries
Construction
Manufacturing
Information Technology
Mining
Oil and Gas
Infrastructure Development
Facilities Management
Industrial Services
Logistics and Transportation
Professional Services
Relevant Teams
Legal
Procurement
Operations
Human Resources
Compliance
Finance
Risk Management
Supply Chain
Project Management
Commercial
Relevant Roles
Procurement Manager
Legal Counsel
Operations Director
Contract Manager
Compliance Officer
Human Resources Manager
Project Manager
Risk Manager
Supply Chain Manager
Facility Manager
Chief Financial Officer
Commercial Director
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