The Subcontractor Confirmation Letter is a crucial business document used in the Indonesian market when a contractor needs to formally engage and confirm the appointment of a subcontractor. This document is typically issued after initial negotiations but before work commencement, serving as a binding confirmation of the subcontracting arrangement. It's particularly important in Indonesia where subcontracting relationships are strictly regulated under Law No. 13 of 2003 on Manpower and various ministerial regulations. The letter should capture essential terms of the engagement while ensuring compliance with local legal requirements, including work scope, commercial terms, and regulatory compliance matters. It's commonly used in projects where quick mobilization is needed while detailed subcontract documentation is being finalized, or in smaller scope works where a full subcontract may not be necessary.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing to the subcontractor
2. Project Reference: Clear identification of the main project or work package being subcontracted
3. Confirmation of Appointment: Express statement confirming the subcontractor's appointment and acceptance of the role
4. Scope of Work: Brief but clear description of the subcontracted work scope
5. Key Commercial Terms: Essential terms including payment amount, payment schedule, and duration of work
6. Key Dates: Start date, completion date, and any crucial milestone dates
7. Compliance Statement: Statement regarding compliance with Indonesian labor laws and relevant regulations
8. Main Contract Reference: Reference to the main contract or terms that the subcontractor must adhere to
9. Signature Block: Space for authorized signatures, company stamps, and dates
1. Insurance Requirements: Include when specific insurance coverage needs to be highlighted or confirmed
2. Health and Safety Requirements: Include for high-risk work or when specific safety protocols must be followed
3. Foreign Worker Provisions: Include when the subcontractor will employ foreign workers
4. Quality Assurance Requirements: Include for technical or specialized work requiring specific quality standards
5. Environmental Compliance: Include for work with environmental impact or requirements
6. Local Content Requirements: Include when there are specific local content obligations to be met
1. Detailed Scope of Work: Detailed technical specifications and requirements of the subcontracted work
2. Price Schedule: Detailed breakdown of prices, rates, and payment terms
3. Project Timeline: Detailed project schedule showing key milestones and deliverables
4. Required Certifications: List of mandatory certifications and qualifications required
5. Key Personnel: List of key personnel assigned to the project with their roles and qualifications
6. Equipment Schedule: List of equipment to be provided by the subcontractor if applicable
Relevant legal definitions
Clauses
Relevant Industries
Construction
Engineering
Manufacturing
Oil and Gas
Mining
Infrastructure
Technology
Telecommunications
Industrial Services
Facilities Management
Energy
Transportation
Maritime
Relevant Teams
Legal
Procurement
Commercial
Operations
Project Management
Supply Chain
Risk & Compliance
Technical
Finance
Health Safety & Environment
Relevant Roles
Project Manager
Contract Manager
Procurement Manager
Commercial Manager
Legal Counsel
Operations Director
Site Manager
Construction Manager
Supply Chain Manager
Risk Manager
Compliance Officer
Technical Director
Chief Operating Officer
Project Director
Procurement Director
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