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Flat Fee Agreement for Indonesia

Flat Fee Agreement Template for Indonesia

A comprehensive agreement template governed by Indonesian law that establishes a fixed-fee arrangement between a service provider and client. This document outlines the scope of services, payment terms, deliverables, and timeline for a project or engagement where the total fee is predetermined and fixed. It includes provisions for service delivery standards, payment schedules, intellectual property rights, and dispute resolution mechanisms in accordance with Indonesian legal requirements. The agreement provides clarity and certainty regarding costs while protecting both parties' interests under Indonesian jurisdiction.

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What is a Flat Fee Agreement?

The Flat Fee Agreement is essential for business relationships in Indonesia where services are provided for a predetermined, fixed amount rather than on a time-and-materials basis. This document type is commonly used when the scope of work can be clearly defined and the service provider is confident in estimating the total cost of delivery. It provides certainty for both parties regarding pricing and helps avoid disputes over fees during project execution. The agreement must comply with Indonesian contract law, including the Civil Code (KUHPerdata) and relevant commercial regulations. It is particularly valuable for professional services, consulting engagements, and project-based work where budget certainty is crucial for both parties. The document includes comprehensive provisions for service delivery, payment terms, and risk allocation, while incorporating necessary safeguards under Indonesian law.

What sections should be included in a Flat Fee Agreement?

1. Parties: Identifies and provides full details of the parties entering into the agreement

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Detailed description of the services to be provided under the flat fee arrangement

5. Fee and Payment Terms: Specifies the flat fee amount, payment schedule, and payment methods

6. Timeline and Deliverables: Outlines the project timeline and specific deliverables

7. Obligations of Service Provider: Details the responsibilities and commitments of the service provider

8. Obligations of Client: Specifies the client's responsibilities and commitments

9. Term and Termination: Sets out the duration of the agreement and conditions for termination

10. Confidentiality: Establishes confidentiality obligations for both parties

11. Intellectual Property: Addresses ownership and rights to any intellectual property created

12. Governing Law: Specifies Indonesian law as the governing law

13. Dispute Resolution: Outlines the process for resolving any disputes

14. General Provisions: Includes standard legal provisions such as force majeure, notices, and amendments

What sections are optional to include in a Flat Fee Agreement?

1. Non-Compete: Include when the service provider should be restricted from working with competitors

2. Insurance: Include when specific insurance coverage is required for the services

3. Warranties: Include when specific guarantees about the services are necessary

4. Third Party Rights: Include when third parties may be involved in or affected by the services

5. Data Protection: Include when personal data processing is involved in the services

6. Force Majeure: Include when specific force majeure provisions beyond standard terms are needed

7. Assignment: Include when transfer of rights needs to be specifically addressed

What schedules should be included in a Flat Fee Agreement?

1. Schedule A - Detailed Scope of Services: Comprehensive breakdown of services to be provided

2. Schedule B - Fee Breakdown: Detailed breakdown of the flat fee components and payment milestones

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

4. Schedule D - Service Level Requirements: Specific performance standards and quality requirements

5. Appendix 1 - Required Documents: List of documents required from both parties

6. Appendix 2 - Contact Details: Key contact information for both parties

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

Document Type

Fee Agreement

Cost

Free to use
Relevant legal definitions




























Clauses






























Relevant Industries

Professional Services

Consulting

Information Technology

Construction

Design and Creative Services

Legal Services

Business Advisory

Engineering

Architecture

Marketing and Advertising

Project Management

Education and Training

Research and Development

Relevant Teams

Legal

Finance

Procurement

Operations

Commercial

Business Development

Project Management

Contract Administration

Risk Management

Compliance

Relevant Roles

CEO

Managing Director

Project Manager

Contract Manager

Legal Counsel

Business Development Manager

Finance Director

Operations Manager

Procurement Manager

Account Executive

Consultant

Professional Service Provider

Business Owner

Commercial Director

Department Head

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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