The Tooling Agreement serves as a critical legal instrument in Indonesia's manufacturing and industrial sectors, establishing the framework for tool supply, manufacture, or usage arrangements between parties. This document is essential when companies require specialized tools or equipment for their manufacturing processes, whether through purchase, custom manufacture, or lease arrangements. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUH Perdata), Law No. 3 of 2014 on Industry, and relevant industrial regulations. It typically includes detailed technical specifications, quality standards, intellectual property provisions, and compliance requirements specific to the Indonesian market. The Tooling Agreement is particularly important in protecting both parties' interests while ensuring clarity on ownership, usage rights, maintenance responsibilities, and risk allocation in industrial tool arrangements.
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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, relationship between parties, and general purpose of the tooling arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including technical specifications and commercial terms
4. Scope of Agreement: Detailed description of the tools covered and the nature of the arrangement (supply, manufacture, maintenance, etc.)
5. Technical Specifications: Detailed requirements for the tools, including design, dimensions, materials, and performance criteria
6. Price and Payment Terms: Pricing structure, payment schedule, invoicing requirements, and any advance payments
7. Delivery and Acceptance: Terms for delivery, inspection, testing, and acceptance criteria for the tools
8. Title and Risk: Transfer of ownership, risk allocation, and responsibility for insurance
9. Intellectual Property Rights: Ownership and usage rights for designs, patents, and other IP related to the tools
10. Quality Requirements: Quality standards, testing procedures, and compliance requirements
11. Warranties: Warranties regarding tool quality, performance, and fitness for purpose
12. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification obligations
13. Term and Termination: Duration of agreement, renewal terms, and termination rights
14. Confidentiality: Protection of confidential information and trade secrets
15. Governing Law and Dispute Resolution: Choice of law, jurisdiction, and dispute resolution mechanisms
1. Manufacturing Requirements: Include when tools are being manufactured rather than just supplied, detailing manufacturing processes and standards
2. Import/Export Compliance: Include for international transactions requiring compliance with import/export regulations
3. Maintenance and Support: Include when ongoing maintenance or technical support is part of the agreement
4. Training: Include when supplier must provide training for tool operation or maintenance
5. Safety Requirements: Include when specific safety protocols or certifications are required
6. Insurance: Include detailed insurance requirements when tools are of high value or pose significant risks
7. Environmental Compliance: Include when tools have specific environmental impact considerations
8. Change Management: Include when modifications to tool specifications may be needed during the agreement term
1. Technical Specifications Schedule: Detailed technical drawings, specifications, and performance requirements for each tool
2. Pricing Schedule: Detailed breakdown of prices, including any variable components or volume-based pricing
3. Quality Standards Schedule: Specific quality requirements, testing procedures, and acceptance criteria
4. Delivery Schedule: Timing and logistics for tool delivery or manufacturing milestones
5. Maintenance Schedule: Details of maintenance requirements and procedures
6. Compliance Certificates: Required regulatory or safety certificates and compliance documentation
7. Form of Acceptance Certificate: Template for formal acceptance of delivered tools
8. Service Level Requirements: Performance metrics and service levels for tool operation or support
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Automotive
Aerospace
Electronics
Industrial Equipment
Heavy Machinery
Consumer Goods
Precision Engineering
Metal Processing
Plastics and Polymers
Construction Equipment
Mining Equipment
Relevant Teams
Legal
Procurement
Operations
Manufacturing
Engineering
Quality Control
Supply Chain
Technical Operations
Facilities Management
Contract Administration
Production
Industrial Design
Relevant Roles
Procurement Manager
Manufacturing Director
Operations Manager
Supply Chain Manager
Quality Control Manager
Production Engineer
Technical Director
Industrial Engineer
Facilities Manager
Contract Manager
Legal Counsel
Chief Operations Officer
Engineering Manager
Tooling Supervisor
Manufacturing Engineer
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