The Supply and Installation Agreement is a crucial document for projects involving the procurement and professional installation of equipment or systems in Indonesia. It is commonly used when customers require not just the delivery of equipment but also its proper installation by qualified professionals. The agreement needs to comply with Indonesian legal requirements, including Law No. 2 of 2017 on Construction Services and relevant consumer protection regulations. This document type is particularly important as it addresses both the commercial aspects of supply and the technical requirements of installation, including specifications, delivery terms, installation procedures, testing and commissioning, warranties, and after-service support. It provides comprehensive protection for both parties by clearly defining responsibilities, risk allocation, and performance standards while ensuring compliance with local safety and technical regulations.
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1. Parties: Identification of the supplier/contractor and the customer/employer, including their legal status and registration details
2. Background: Context of the agreement, including project overview and parties' capabilities
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Scope of Supply: Detailed description of goods/equipment to be supplied, including specifications and quantities
5. Installation Services: Scope of installation works, methodology, and standards to be followed
6. Timeline and Delivery: Delivery schedule, installation milestones, and completion deadlines
7. Price and Payment: Contract price, payment schedule, and payment conditions
8. Quality and Standards: Quality requirements, applicable standards, and testing procedures
9. Warranties: Warranties for equipment and installation workmanship
10. Title and Risk: Transfer of ownership and risk allocation
11. Health, Safety and Environment: HSE requirements and compliance obligations
12. Insurance: Required insurance coverage for both supply and installation phases
13. Liability and Indemnification: Liability limitations and indemnification obligations
14. Force Majeure: Force majeure events and consequences
15. Termination: Termination rights and procedures
16. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
17. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Customs and Import Duties: Include when equipment is being imported, detailing customs responsibilities and import duty obligations
2. Site Access and Conditions: Include when installation is at customer's site, detailing access rights and site condition requirements
3. Training and Documentation: Include when operation training and technical documentation are required
4. Spare Parts: Include when long-term spare parts supply is part of the agreement
5. Performance Guarantees: Include when specific performance metrics are guaranteed
6. Maintenance Services: Include when post-installation maintenance is part of the scope
7. Local Content Requirements: Include when Indonesian local content requirements apply
8. Intellectual Property Rights: Include when proprietary technology or software is involved
9. Bank Guarantees: Include when advance payment or performance bonds are required
1. Schedule 1 - Technical Specifications: Detailed technical specifications of equipment and materials to be supplied
2. Schedule 2 - Scope of Installation Works: Detailed scope of installation services and methodology
3. Schedule 3 - Project Timeline: Detailed project schedule including delivery and installation milestones
4. Schedule 4 - Price Breakdown: Detailed breakdown of contract price including supply and installation components
5. Schedule 5 - Site Requirements: Site preparation requirements and conditions
6. Schedule 6 - Testing and Commissioning Procedures: Procedures for testing and commissioning of installed equipment
7. Schedule 7 - Forms of Certificates: Templates for completion certificates and acceptance documents
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Appendix A - Performance Standards: Specific performance standards and metrics
10. Appendix B - Required Insurance Coverage: Details of required insurance policies and coverage levels
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