A Project Termination Letter is a crucial document used when formally ending a project before or upon its planned completion date in Indonesia. It must comply with Indonesian legal requirements, particularly the Civil Code (KUHPerdata) and relevant industry-specific regulations. This document is essential when projects need to be terminated due to completion, breach of contract, force majeure, mutual agreement, or other specified reasons. The letter includes critical information such as termination basis, effective date, final settlement terms, and post-termination obligations. It serves as a formal record of the project's conclusion and helps prevent future disputes by clearly documenting the termination terms and conditions.
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1. Letter Header and Date: Formal business letter header including sender's details, recipient's details, and date
2. Project Reference Details: Clear identification of the project being terminated, including contract reference numbers, project name, and relevant dates
3. Termination Notice Statement: Clear and unambiguous statement of termination, citing the relevant contract clause or legal basis for termination
4. Effective Date of Termination: Specific date when the termination becomes effective, considering any notice periods required by the original contract
5. Reason for Termination: Clear explanation of the grounds for termination, referring to relevant contract provisions or circumstances
6. Immediate Actions Required: List of immediate steps that need to be taken by both parties, including handover requirements and cease work instructions
7. Final Settlement Terms: Overview of payment terms, including final invoices, retention amounts, and timeline for settlement
8. Closing Statement: Formal closing including any requirements for acknowledgment and contact details for further communication
1. Confidentiality Reminder: Include when there are specific confidentiality obligations that survive termination
2. Intellectual Property Rights: Include when there are IP matters that need to be addressed post-termination
3. Equipment and Materials Disposition: Include when there are physical assets or materials that need to be returned or disposed of
4. Ongoing Warranty Obligations: Include when certain warranty obligations survive the termination
5. Personnel Transition: Include when there are staff or labor-related matters to be addressed
6. Dispute Resolution Process: Include when there are contested issues or specific dispute resolution procedures to be followed
1. Schedule A - Project Close-out Checklist: Detailed list of items to be completed as part of the termination process
2. Schedule B - Final Payment Calculation: Detailed breakdown of final payment amounts, including any adjustments or deductions
3. Schedule C - Asset Register: List of project assets and their proposed disposition
4. Schedule D - Outstanding Deliverables: List of any deliverables or documentation that must still be provided
5. Appendix 1 - Original Contract Reference: Copy or reference to relevant sections of the original contract regarding termination
6. Appendix 2 - Supporting Documentation: Any relevant supporting documents justifying the termination
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Information Technology
Infrastructure Development
Manufacturing
Energy and Resources
Telecommunications
Real Estate Development
Engineering Services
Consulting Services
Public Sector Projects
Mining
Oil and Gas
Relevant Teams
Legal
Project Management Office
Operations
Procurement
Finance
Risk Management
Commercial
Compliance
Contract Administration
Business Development
Relevant Roles
Project Manager
Contract Manager
Legal Counsel
Chief Executive Officer
Chief Operating Officer
Program Director
Project Director
Procurement Manager
Commercial Manager
Operations Manager
Site Manager
Legal Director
Risk Manager
Chief Financial Officer
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