The Cost Plus Contractor Agreement is designed for projects in Indonesia where traditional fixed-price contracts may not be suitable due to uncertainty in scope or complexity of works. This agreement type is particularly useful for large-scale projects, emergency works, or situations where the final scope cannot be accurately determined at the outset. The document provides a framework for reimbursing the contractor's actual costs plus an agreed fee or percentage markup, while incorporating necessary safeguards for cost control and verification. It ensures compliance with Indonesian regulations, particularly Law No. 2 of 2017 on Construction Services and related implementing regulations, while addressing local content requirements, licensing, and other regulatory considerations specific to Indonesia. The agreement is structured to provide clarity on cost categories, reporting requirements, and approval processes, making it suitable for both domestic and international contracting arrangements within Indonesian jurisdiction.
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1. Parties: Identification of the contracting parties including full legal names, registration numbers, and addresses
2. Background: Context of the agreement, project overview, and parties' intentions
3. Definitions: Definitions of key terms including 'Costs', 'Fee', 'Services', 'Project', and other relevant terminology
4. Scope of Services: Detailed description of the contractor's services and deliverables
5. Cost Plus Fee Structure: Definition of allowable costs, fee calculation method, and markup percentage
6. Payment Terms: Payment procedures, timing, documentation requirements, and verification process
7. Contractor's Obligations: Key responsibilities, performance standards, and compliance requirements
8. Client's Obligations: Client's responsibilities including access, information provision, and approvals
9. Cost Control and Reporting: Cost tracking, reporting requirements, and budget control procedures
10. Quality and Performance Standards: Quality requirements, performance metrics, and acceptance criteria
11. Term and Termination: Contract duration, renewal terms, and termination provisions
12. Insurance and Liability: Insurance requirements, liability limitations, and indemnification provisions
13. Confidentiality: Protection of confidential information and trade secrets
14. Dispute Resolution: Dispute resolution procedures compliant with Indonesian law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Health, Safety and Environment: Detailed HSE requirements for high-risk projects or when working in sensitive environments
2. Local Content Requirements: Specific provisions for meeting Indonesian local content requirements, if applicable
3. Force Majeure: Extended force majeure provisions for projects in volatile regions or with specific risk factors
4. Intellectual Property Rights: IP provisions when the services involve design work or technology development
5. Performance Security: Requirements for performance bonds or bank guarantees for high-value projects
6. Equipment and Materials: Specific provisions for supply and management of equipment when included in scope
7. Subcontracting: Detailed subcontracting terms when significant portions of work may be subcontracted
1. Schedule 1 - Scope of Work: Detailed technical specification of services and deliverables
2. Schedule 2 - Fee Calculation: Detailed breakdown of fee structure, markup calculations, and cost categories
3. Schedule 3 - Rate Card: Approved rates for labor, equipment, and materials
4. Schedule 4 - Key Personnel: List of key personnel and their roles/qualifications
5. Schedule 5 - Project Schedule: Project timeline, milestones, and deliverable dates
6. Schedule 6 - Reporting Requirements: Templates and requirements for cost and progress reporting
7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements
8. Appendix A - Cost Categories: Detailed list of allowable and non-allowable costs
9. Appendix B - Required Insurance: Detailed insurance requirements and minimum coverage amounts
10. Appendix C - Forms and Templates: Standard forms for invoicing, change orders, and reports
Relevant legal definitions
Clauses
Relevant Industries
Construction
Oil and Gas
Mining
Infrastructure Development
Manufacturing
Industrial Projects
Energy
Telecommunications
Real Estate Development
Engineering Services
Relevant Teams
Legal
Commercial
Procurement
Finance
Operations
Project Management
Risk & Compliance
Engineering
Construction
Cost Control
Relevant Roles
Project Manager
Contract Manager
Commercial Director
Procurement Manager
Legal Counsel
Chief Financial Officer
Operations Director
Cost Controller
Construction Manager
Risk Manager
Compliance Officer
Technical Director
Project Engineer
Finance Manager
Commercial Manager
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