The Nominated Subcontractor Agreement is a crucial document used in Indonesian construction projects where the employer wishes to maintain control over the selection of certain specialized subcontractors while maintaining the main contractor's overall responsibility for the works. This arrangement is particularly common in complex construction projects where specific expertise or proprietary systems are required. The agreement must comply with Indonesian law, particularly Law No. 2 of 2017 on Construction Services and related regulations, while balancing the interests of all parties involved. It typically includes detailed provisions for coordination, payment procedures, quality control, and dispute resolution, reflecting the unique three-way relationship between employer, main contractor, and nominated subcontractor. The document is structured to ensure clear delineation of responsibilities while maintaining alignment with the main contract terms.
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1. Parties: Identification of the Main Contractor and the Nominated Subcontractor, including their registration details and authority to enter into the agreement
2. Background: Context of the nomination, reference to the main contract, and the employer's role in nominating the subcontractor
3. Definitions and Interpretation: Definitions of key terms, including those aligned with the main contract, and rules of interpretation
4. Scope of Nominated Subcontract Works: Detailed description of the works to be performed, including reference to specifications and drawings
5. Main Contractor's Obligations: Key responsibilities of the main contractor, including coordination, site access, and support services
6. Nominated Subcontractor's Obligations: Core obligations including workmanship, materials, compliance with specifications, and coordination requirements
7. Programme and Progress: Time-related obligations, including submission of programs, progress reporting, and coordination with main works
8. Quality and Standards: Quality requirements, applicable standards, and inspection/testing procedures
9. Payment Terms: Payment mechanisms, including certification process, payment timeline, and retention provisions
10. Variations: Procedures for handling changes to the subcontract works, including pricing and time implications
11. Health, Safety and Environment: HSE requirements and compliance with relevant regulations
12. Insurance and Indemnities: Required insurance coverage and indemnification obligations
13. Default and Termination: Events of default, termination rights, and consequences of termination
14. Dispute Resolution: Procedures for resolving disputes, including reference to Indonesian law requirements
15. General Provisions: Standard contractual provisions including notices, assignment, and entire agreement
1. Performance Security: Required when the value or nature of works necessitates additional security
2. Design Obligations: Included when the subcontractor has design responsibilities
3. Intellectual Property Rights: Required when the subcontract works involve significant IP elements
4. Local Content Requirements: Included when specific Indonesian local content requirements apply
5. Advance Payment: Optional section for when advance payments are to be made
6. Force Majeure: Detailed force majeure provisions when required beyond general provisions
7. Step-in Rights: Required when the employer needs direct step-in rights with the subcontractor
8. Warranties: Specific warranty provisions when extended warranties are required beyond standard defects liability
1. Schedule 1 - Scope of Works: Detailed description of the subcontract works including specifications and requirements
2. Schedule 2 - Contract Price and Payment Terms: Breakdown of contract price, payment milestones, and specific payment procedures
3. Schedule 3 - Programme: Detailed programme of works including key milestones and interfaces with main contract works
4. Schedule 4 - Technical Specifications: Detailed technical specifications and standards applicable to the subcontract works
5. Schedule 5 - Forms and Procedures: Standard forms for applications, certificates, and other procedural documents
6. Schedule 6 - Key Personnel: List of key personnel and their roles/responsibilities
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements including types and levels of coverage
8. Appendix A - Main Contract Extracts: Relevant extracts from the main contract affecting the subcontract works
9. Appendix B - Drawings: Complete set of drawings relevant to the subcontract works
10. Appendix C - HSE Requirements: Detailed health, safety, and environmental requirements and procedures
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