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Subcontractor Work Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a main contractor and a subcontractor for specific work or services. The document incorporates requirements from Indonesian Labor Law (Law No. 13 of 2003) and Construction Services Law (Law No. 2 of 2017), defining the scope of work, payment terms, performance standards, and compliance requirements. It includes provisions for worker protection, safety standards, and social security obligations as mandated by Indonesian regulations, while establishing clear responsibilities and liabilities between the contracting parties.

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Subcontractor Work Agreement

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What is a Subcontractor Work Agreement?

The Subcontractor Work Agreement is a critical document used when a main contractor needs to delegate specific project work to another company (subcontractor) in Indonesia. This agreement is essential for projects requiring specialized skills, additional workforce, or specific technical expertise that the main contractor doesn't possess or chooses not to perform directly. The document must comply with Indonesian regulations, particularly Law No. 13 of 2003 on Manpower and Law No. 2 of 2017 on Construction Services, which set specific requirements for subcontracting arrangements. It typically includes detailed specifications of work scope, quality standards, safety requirements, payment terms, and performance obligations, while ensuring proper worker protection and social security coverage as mandated by Indonesian law.

What sections should be included in a Subcontractor Work Agreement?

1. Parties: Identification of the Main Contractor and Subcontractor, including their legal details and representatives

2. Background: Context of the agreement, including reference to the main contract and project details

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

4. Scope of Work: Detailed description of the work to be performed by the Subcontractor

5. Duration of Agreement: Term of the agreement, including commencement and completion dates

6. Payment Terms: Compensation, payment schedule, invoicing requirements, and payment methods

7. Performance Standards: Quality standards, specifications, and performance requirements

8. Obligations of the Subcontractor: Key responsibilities including labor, materials, equipment, and compliance requirements

9. Obligations of the Main Contractor: Main Contractor's responsibilities including access, information, and coordination

10. Health and Safety Requirements: Safety protocols and compliance with Indonesian workplace safety regulations

11. Insurance and Indemnity: Required insurance coverage and indemnification provisions

12. Warranties: Warranties for workmanship and materials

13. Termination: Grounds and procedures for termination of the agreement

14. Dispute Resolution: Process for resolving disputes under Indonesian law

15. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

What sections are optional to include in a Subcontractor Work Agreement?

1. Intellectual Property Rights: Required when the subcontracted work involves creation or use of intellectual property

2. Confidentiality: Needed when sensitive information will be shared during the project

3. Force Majeure: Specific provisions for handling unforeseen circumstances and natural disasters

4. Environmental Compliance: Required for projects with environmental impact considerations

5. Foreign Worker Requirements: Necessary when foreign workers will be employed by the subcontractor

6. Bank Guarantee: Required when performance bonds or other financial guarantees are needed

7. Equipment Lease: Needed when the main contractor provides equipment to the subcontractor

8. Materials Supply: Required when specific arrangements exist for material procurement and supply

What schedules should be included in a Subcontractor Work Agreement?

1. Schedule A - Scope of Work: Detailed technical specifications and drawings of the work to be performed

2. Schedule B - Bill of Quantities: Itemized list of work items and their quantities

3. Schedule C - Payment Schedule: Detailed breakdown of payment milestones and amounts

4. Schedule D - Project Timeline: Detailed project schedule including milestones and deadlines

5. Schedule E - Safety Procedures: Specific safety protocols and requirements for the project

6. Schedule F - Quality Control Requirements: Detailed quality standards and inspection procedures

7. Appendix 1 - Required Permits and Licenses: List of necessary permits and licenses required for the work

8. Appendix 2 - Key Personnel: List of key personnel from both parties involved in the project

9. Appendix 3 - Equipment Schedule: List of equipment to be used or provided for the project

10. Appendix 4 - Insurance Requirements: Detailed insurance requirements and coverage limits

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

Project Agreement

Cost

Free to use
Relevant legal definitions






































Clauses





































Relevant Industries

Construction

Infrastructure

Manufacturing

Mining

Oil and Gas

Technology and Communications

Energy

Real Estate Development

Industrial Projects

Transportation

Relevant Teams

Legal

Procurement

Operations

Project Management

Risk and Compliance

Finance

Commercial

Health and Safety

Quality Control

Technical Operations

Contract Administration

Relevant Roles

Project Manager

Contract Manager

Legal Counsel

Procurement Manager

Operations Director

Site Supervisor

Quality Control Manager

Health and Safety Officer

Commercial Manager

Risk Manager

Construction Manager

Technical Director

Compliance Officer

Finance Director

Project Engineer

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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