The Project Service Agreement is essential for businesses operating in Indonesia that engage external service providers for specific project-based work. This document type is commonly used when a company (the client) requires specialized services from a contractor for a defined project scope, whether in construction, technology, consulting, or other sectors. The agreement must comply with Indonesian law, including the Civil Code (KUHPerdata) and sector-specific regulations, while also addressing practical aspects of project delivery such as local content requirements, language requirements under Law No. 24 of 2009, and relevant investment regulations. The document structure accommodates both domestic and international service providers, incorporating necessary provisions for cross-border transactions while maintaining compliance with Indonesian legal requirements.
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1. Parties: Identification of the service provider and client, including their legal status and registered addresses
2. Background: Context of the agreement, project overview, and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided, deliverables, and project objectives
5. Term and Timeline: Duration of the agreement and project milestones
6. Payment Terms: Fee structure, payment schedule, invoicing requirements, and payment method
7. Obligations of Service Provider: Key responsibilities, performance standards, and compliance requirements
8. Obligations of Client: Client's responsibilities, including provision of information and access
9. Representations and Warranties: Parties' assurances regarding capacity, authority, and service quality
10. Intellectual Property Rights: Ownership and usage rights of project deliverables and pre-existing IP
11. Confidentiality: Protection and handling of confidential information
12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
13. Force Majeure: Provisions for unforeseen circumstances affecting performance
14. Termination: Grounds for termination, notice requirements, and consequences
15. Governing Law and Dispute Resolution: Applicable law and mechanism for resolving disputes
16. General Provisions: Standard clauses including notices, amendments, and assignment
1. Personnel Requirements: Specific requirements for key personnel, used when project success depends on particular expertise or qualifications
2. Performance Security: Requirements for performance bonds or guarantees, included for high-value or high-risk projects
3. Insurance: Specific insurance requirements, included when project involves significant risks or regulatory requirements
4. Health and Safety: HSE requirements, included for projects involving on-site work or hazardous activities
5. Local Content Requirements: Provisions for local content and technology transfer, included when required by Indonesian regulations
6. Anti-Corruption: Detailed anti-corruption provisions, included for international projects or when working with government entities
7. Data Protection: Specific data handling requirements, included when project involves personal or sensitive data processing
8. Environmental Compliance: Environmental protection obligations, included for projects with environmental impact
1. Schedule 1 - Scope of Services: Detailed technical specifications and service requirements
2. Schedule 2 - Project Timeline: Detailed project schedule, milestones, and delivery dates
3. Schedule 3 - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones
4. Schedule 4 - Key Personnel: List of key personnel and their roles/responsibilities
5. Schedule 5 - Service Levels: Performance metrics and service level requirements
6. Schedule 6 - Required Documents: List of permits, licenses, and compliance documents
7. Schedule 7 - Equipment and Materials: List of equipment and materials to be provided by each party
8. Appendix A - Form of Invoice: Template for invoices and payment documentation
9. Appendix B - Change Order Form: Template for requesting and documenting changes to scope
10. Appendix C - Progress Report Template: Standard format for progress reporting
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