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.
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1. Parties: Identification and details of the contracting parties
2. Background: Context of the agreement and general intent of the parties
3. Definitions and Interpretation: Defined terms and rules of interpretation
4. Scope of Services: Detailed description of the services to be provided
5. Contract Price and Payment Terms: Fixed fee amount, payment schedule, and payment conditions
6. Timeline and Deliverables: Project schedule, milestones, and specific deliverables
7. Contractor Obligations: Key responsibilities and obligations of the service provider
8. Client Obligations: Key responsibilities and obligations of the client
9. Quality Standards: Required quality levels and standards to be met
10. Variations: Process for handling changes to scope or requirements
11. Force Majeure: Provisions for unforeseen circumstances and their handling
12. Termination: Grounds and process for contract termination
13. Liability and Indemnification: Allocation of risks and responsibilities between parties
14. Dispute Resolution: Process for resolving disagreements and jurisdiction
15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Insurance: Insurance requirements - include when specific coverage is needed for the services
2. Intellectual Property Rights: IP ownership and licenses - include when services involve creation of IP
3. Confidentiality: Non-disclosure obligations - include when sensitive information is involved
4. Performance Security: Bank guarantees or bonds - include for high-value contracts
5. Health and Safety: HSE requirements - include for on-site or hazardous work
6. Environmental Compliance: Environmental obligations - include for environmentally sensitive work
7. Local Content Requirements: Local content obligations - include when required by Indonesian regulations
8. Subcontracting: Subcontracting terms - include when subcontractors may be used
1. Schedule 1 - Scope of Work: Detailed technical specifications and requirements
2. Schedule 2 - Fee Breakdown: Detailed breakdown of the fixed fee components
3. Schedule 3 - Project Timeline: Detailed project schedule and milestones
4. Schedule 4 - Key Personnel: List of key personnel and their roles
5. Schedule 5 - Forms and Procedures: Standard forms for variations, progress reports, etc.
6. Schedule 6 - Technical Standards: Applicable technical standards and specifications
7. Appendix A - Performance Requirements: Specific performance metrics and KPIs
8. Appendix B - Required Documents: List of required permits, licenses, and certificates
Relevant legal definitions
Clauses
Relevant Industries
Construction
Information Technology
Consulting Services
Engineering
Infrastructure Development
Manufacturing
Energy
Mining
Transportation
Professional Services
Telecommunications
Project Management
Research and Development
Architecture
Technical Services
Relevant Teams
Legal
Procurement
Finance
Operations
Commercial
Risk Management
Compliance
Project Management
Business Development
Technical Services
Relevant Roles
Contract Manager
Project Manager
Legal Counsel
Procurement Manager
Commercial Director
Chief Financial Officer
Operations Manager
Business Development Manager
Risk Manager
Compliance Officer
Technical Director
Project Engineer
Financial Controller
General Manager
Managing Director
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