The Facility Use Agreement serves as a crucial legal instrument in Indonesian property management and operations, establishing a formal relationship between facility owners/operators and users. This document is essential when any party seeks to use a facility for a specified period, whether for commercial, educational, recreational, or other purposes. The agreement must comply with Indonesian Civil Code (KUHPerdata) requirements and relevant property regulations, including Law No. 28 of 2002 on Buildings and local regulatory requirements. It details specific terms for facility access, usage conditions, financial obligations, maintenance responsibilities, and risk allocation, while incorporating necessary provisions for insurance, security deposits, and dispute resolution. The document is particularly important in Indonesia's growing commercial and property sectors, where clear documentation of facility usage rights and obligations is essential for risk management and operational efficiency.
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1. Parties: Identification of the facility owner/operator and the user, including their legal status and authority to enter into the agreement
2. Background: Context of the agreement, brief description of the facility, and purpose of the arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of Use: Specific rights granted to use the facility, including any restrictions or limitations
5. Term: Duration of the agreement, including commencement date and any renewal options
6. Fees and Payment: Usage fees, payment terms, security deposit, and other financial obligations
7. User Obligations: Responsibilities of the user regarding facility use, maintenance, and conduct
8. Owner Obligations: Responsibilities of the owner in maintaining and operating the facility
9. Operating Hours and Access: Specified times for facility access and use
10. Maintenance and Repairs: Responsibilities for facility maintenance and repair procedures
11. Insurance and Liability: Required insurance coverage and allocation of risks between parties
12. Default and Remedies: Events of default and available remedies for both parties
13. Termination: Grounds for termination and the process for ending the agreement
14. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes
15. General Provisions: Standard contractual provisions including notices, amendments, and entire agreement
1. Special Equipment Use: Terms for use of specific equipment within the facility, used when equipment is included in the agreement
2. Additional Services: Details of any additional services provided by the owner, such as cleaning or security
3. Commercial Use Provisions: Special terms for commercial use of the facility, required when facility is used for business purposes
4. Shared Facilities: Rules regarding use of common areas or shared facilities, needed when facility is part of a larger complex
5. Environmental Compliance: Specific environmental obligations and compliance requirements, necessary for facilities with environmental impact
6. Licenses and Permits: Requirements for obtaining and maintaining necessary permits, included when specific licenses are needed
7. Staff and Personnel: Requirements regarding facility staff and user's personnel, relevant when staffing is part of the arrangement
8. Alterations and Improvements: Terms for making changes to the facility, included when modifications are anticipated
1. Facility Description: Detailed description of the facility, including floor plans and specifications
2. Fee Schedule: Detailed breakdown of all fees, charges, and payment terms
3. Operating Rules and Regulations: Specific rules governing the use of the facility
4. Maintenance Schedule: Schedule of regular maintenance activities and responsibilities
5. Insurance Requirements: Detailed insurance requirements and minimum coverage levels
6. Equipment Inventory: List of equipment included in the facility use agreement
7. Form of Security Deposit: Format and terms of the required security deposit
8. Condition Report: Initial condition assessment of the facility and equipment
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Education
Sports and Recreation
Corporate Services
Events and Entertainment
Healthcare
Retail
Manufacturing
Religious Services
Government Services
Community Services
Hospitality
Technology
Relevant Teams
Legal
Operations
Facilities Management
Administration
Risk Management
Compliance
Property Management
Asset Management
Contract Management
Business Development
Relevant Roles
Facility Manager
Property Manager
Operations Director
Legal Counsel
Administrative Manager
Business Development Manager
Events Manager
Real Estate Manager
Compliance Officer
Risk Manager
Contract Administrator
Chief Operating Officer
General Manager
Building Superintendent
Asset Manager
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