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Fabrication Contract Agreement for Indonesia

Fabrication Contract Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for manufacturing or fabricating specific products, components, or equipment. The document outlines detailed technical specifications, quality standards, delivery requirements, and commercial terms while ensuring compliance with Indonesian manufacturing regulations, labor laws, and industrial standards. It includes provisions for quality control, warranties, intellectual property protection, and dispute resolution mechanisms specific to the Indonesian jurisdiction.

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What is a Fabrication Contract Agreement?

The Fabrication Contract Agreement is essential for manufacturing relationships in Indonesia where one party (the Fabricator) agrees to manufacture or fabricate specific products, components, or equipment for another party (the Client). This document is typically used when engaging in custom manufacturing, equipment fabrication, or specialized production processes that require detailed specifications and quality controls. The agreement must comply with Indonesian legal requirements, including Law No. 3 of 2014 on Industry and related regulations governing manufacturing activities. It includes comprehensive terms covering technical specifications, quality standards, testing procedures, delivery requirements, warranties, and risk allocation, while incorporating necessary provisions for intellectual property protection and dispute resolution under Indonesian jurisdiction. The document is particularly important for protecting both parties' interests in complex manufacturing arrangements and ensuring clarity in responsibilities and deliverables.

What sections should be included in a Fabrication Contract Agreement?

1. Parties: Identification of the contracting parties - the fabricator and the client

2. Background: Context of the agreement and general purpose of the fabrication arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of the fabrication services to be provided

5. Technical Specifications: General technical requirements and standards to be met

6. Project Timeline: Delivery schedule, milestones, and completion dates

7. Price and Payment Terms: Pricing structure, payment schedule, and invoicing requirements

8. Quality Control and Inspection: Quality standards, testing procedures, and acceptance criteria

9. Materials and Equipment: Responsibilities for supply and management of materials and equipment

10. Warranties and Defects Liability: Warranty terms and obligations for defect rectification

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

12. Intellectual Property: IP rights and obligations regarding designs and manufacturing processes

13. Confidentiality: Protection of confidential information and trade secrets

14. Force Majeure: Provisions for unforeseen circumstances and their handling

15. Termination: Conditions and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes under Indonesian law

17. Governing Law: Confirmation of Indonesian law as governing law

18. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

What sections are optional to include in a Fabrication Contract Agreement?

1. Insurance: Detailed insurance requirements - include if specific insurance coverage is needed beyond standard requirements

2. Performance Security: Requirements for performance bonds or bank guarantees - include for high-value contracts

3. Export/Import Requirements: Include if materials or finished products cross international borders

4. Site Access and Facilities: Include if fabrication occurs at client's site or specific facility requirements exist

5. Training and Support: Include if post-fabrication training or support is required

6. Subcontracting: Include if subcontracting will be permitted and under what conditions

7. Local Content Requirements: Include if subject to Indonesian local content regulations

What schedules should be included in a Fabrication Contract Agreement?

1. Schedule 1 - Detailed Scope of Work: Comprehensive technical specifications and requirements

2. Schedule 2 - Price Schedule: Detailed breakdown of prices, rates, and payment milestones

3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and deadlines

4. Schedule 4 - Quality Control Procedures: Specific testing and inspection requirements

5. Schedule 5 - Technical Drawings and Specifications: Detailed technical drawings and design specifications

6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements

7. Schedule 7 - Form of Performance Security: Template for performance bond or bank guarantee if required

8. Schedule 8 - Key Personnel: List of key personnel and their roles/responsibilities

9. Appendix A - Required Certifications: List of required certifications and compliance documents

10. Appendix B - Forms and Templates: Standard forms for progress reports, change orders, etc.

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions


















































Clauses









































Relevant Industries

Manufacturing

Engineering

Construction

Industrial Equipment

Automotive

Aerospace

Marine

Oil and Gas

Mining

Electronics Manufacturing

Heavy Industry

Defense Manufacturing

Infrastructure

Energy

Relevant Teams

Legal

Operations

Manufacturing

Engineering

Quality Control

Procurement

Commercial

Risk & Compliance

Technical

Supply Chain

Production

Project Management

Relevant Roles

Manufacturing Manager

Operations Director

Procurement Manager

Quality Control Manager

Project Manager

Contract Manager

Legal Counsel

Technical Director

Engineering Manager

Supply Chain Manager

Production Manager

Commercial Manager

Risk Manager

Compliance Officer

Chief Operations Officer

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

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