The Subcontractor Termination Letter is a critical document used in Indonesian business operations when a main contractor needs to formally end a contractual relationship with a subcontractor. This document becomes necessary in various situations, including breach of contract, project completion, or termination for convenience as permitted under Indonesian law. The letter must comply with Indonesian Civil Code requirements and relevant sector-specific regulations, particularly Law No. 13 of 2003 (Manpower Law) and Government Regulation No. 79 of 2015 for construction services. It should clearly state the termination grounds, effective date, and remaining obligations, while providing specific instructions for project handover and final settlements. The document plays a crucial role in maintaining proper documentation for legal compliance and protecting the parties' interests during the termination process.
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1. Header Information: Company letterhead, date, reference number, and recipient's complete address
2. Subject Line: Clear indication that this is a termination notice for specific subcontract
3. Contract Reference: Details of the original subcontract including contract number, date, and project description
4. Termination Statement: Clear and unambiguous statement of termination, including effective date and reference to relevant contract clause
5. Reason for Termination: Brief explanation of the grounds for termination
6. Outstanding Obligations: Summary of any remaining work, payments, or obligations to be fulfilled
7. Handover Requirements: Specific instructions for project handover, including timeline and documentation requirements
8. Contact Information: Designated contact person for handling the termination process
9. Closing: Professional closing statement, signature block with authorized signatory details
1. Breach Details: Used when termination is due to breach - detailed description of contract violations
2. Remedy Period: Include if offering a final opportunity to remedy breaches before termination takes effect
3. Financial Settlement: Detailed breakdown of final payments or claims, if complex financial matters need to be addressed
4. Legal References: Specific references to Indonesian law provisions when termination involves legal complications
5. Dispute Resolution: Include when there's a need to outline specific dispute resolution procedures
6. Confidentiality Reminder: Include when there's sensitive information or specific confidentiality obligations post-termination
1. Schedule A - Outstanding Works List: Detailed list of incomplete works and their status
2. Schedule B - Financial Statement: Statement of accounts, including outstanding payments and claims
3. Schedule C - Asset Register: List of project assets, materials, or equipment to be returned or transferred
4. Schedule D - Handover Checklist: Detailed checklist of documents and items to be handed over
5. Appendix 1 - Supporting Evidence: Documentation supporting the grounds for termination, if applicable
6. Appendix 2 - Relevant Correspondence: Copies of previous notices, warnings, or relevant communication
Relevant legal definitions
Clauses
Relevant Industries
Construction
Manufacturing
Oil and Gas
Mining
Infrastructure Development
Real Estate Development
Telecommunications
Energy
Industrial Projects
Transportation
Relevant Teams
Legal
Procurement
Project Management
Operations
Contract Administration
Risk Management
Compliance
Commercial Operations
Construction Management
Relevant Roles
Project Manager
Contract Manager
Legal Counsel
Procurement Manager
Construction Manager
Site Supervisor
Operations Director
Commercial Manager
Risk Manager
Compliance Officer
Project Director
Chief Operating Officer
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