Subcontract Agreement of Concrete/Earth Works (Purchase this doc, Text: 08118887270 (Whatsapp))

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SUBCONTRACT AGREEMENT
Concrete/Earth Works for …....................................
This Subcontract Agreement (hereinafter referred to as the “Agreement”) is made and entered
into this ............................... at Cikarang, Indonesia by and between:
1. ______________________, an entity duly organized and existing under the Laws of the
Republic of Indonesia represented by its Authorized Representative, ....................,
having its registered office at ....................................................................., Indonesia
(hereinafter referred to as the “Contractor”), and
2. PT. ___________, a company duly organized and existing under the Laws of the
Republic of Indonesia represented by its President Director,.......................... , having its
registered office at ........................................................... (hereinafter referred to as the
“Subcontractor”)
For the performance of Concrete / Earth works for ............................ Plant located
in ........................... (hereinafter referred to as the “Project””) issued by PT
............................ (hereinafter referred to as “the Client”).
hereinafter the Contractor and the Subcontractor sometimes referred to herein singularly as “the
Party” or collectively as “the Parties” respectively.
WITNESSETH
WHEREAS, the Contractor is desirous to sublet the Works to the Subcontractor, and both
parties agreed to execute a Subcontract to carry out the works which are described
in the Subcontract Documents.
WHEREAS, the Subcontractor is willing to perform the Works required by the Contractor with
respect to any work stipulated in the Subcontract Documents and agreed to execute complying
with the terms hereinafter stipulated as well as specified in the Subcontract Documents.
WHEREAS, the Contractor desires that certain works for the Project should be executed by the
Subcontractor, and has accepted a Proposal for the execution and completion of the
works and the remedying of any defects thereof.
Now, therefore, in consideration of the premises and mutual covenants contained herein
the Parties agree as follows:
CLAUSE 1 - SUBCONTRACT DOCUMENTS

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The following documents shall be deemed to form and be read and construed as part of
Subcontract Documents, in the following order of priority:
- Subcontract Agreement
- Drawings
- Bill of Quantities
- Work Schedule, Instructions that the Contractor may issue from time to time for the
purpose of clarifying and detailing the required Works.
CLAUSE 2 - SCOPE OF WORKS
The Subcontractor shall perform, all work items specified in the Bill of Quantities of the
Subcontract Documents of the Subcontract between the Contractor and the Subcontractor and
any works issued by the Contractor and provide all labor, erection equipment & plant, materials
and other necessary for the completion of the Fabrication and Site Erection of steel structure for
Zone B with approximately ............. tons (hereinafter referred to as the “Works”).
The Contractor shall supply the raw materials ………;…….. and Shop drawings for fabrication
and erection of the Works within the time specified in the Bill of Quantities and Work Schedule.
The official language for this Subcontract shall be English and all documents related to this
Subcontract shall be made in English. The key personnel of the Subcontractor, including, but not
limited to, the Project Manager, Planning Manager, Material Engineer, Construction Engineer,
Safety Manager/Controller and Administration Staff, shall be able to communicate with the
Contractor’s counterpart in English. If impossible, the Subcontractor shall provide English
interpreters for the efficient operation of the Works.
CLAUSE 3 – COMMENCEMENT AND COMPLETION OF THEWORKS
Sub-Clause 3.1 – Commencement
The Subcontractor shall, immediately after the execution of the Subcontract Agreement, mobilize
his manpower, equipment & plant necessary materials to the project site in order to make sure
that the Subcontractor can start work within “...........…….., YYYY at the latest as specified in the
Subcontract Documents.
This commencement time shall be fixed on seven days after the Contractor free-issues the raw
materials and the Subcontractor receives them at his shop.
Sub-Clause 3.2 – Time for Completion
The Subcontractor shall complete the Works within the time frame stated hereunder;
...................................
Sub-Clause 3.3 – Work Shift(s) (mandatory)
2 work shift operation and 24 hours a day and 7 days a week work shall be mandatory including
Ramadhan (Holidays are flexible)

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- 1st
shift : ............ - ............ (it can be extended up to ............)
- 2nd
shift : ............ - ............ (the next day)
The Subcontractor shall provide the Contractor with a Work Schedule including the details of
fabrication and erection method and planned resources for the Contractor’s review and approval.
In case the Contractor deems that the Works is slipping below the targeted progress, the
Subcontractor shall review his Work Schedule and submit a recovery plan to ensure compliance
with the time for completion.
The Subcontractor shall update the Work Schedule on a daily basis together with the
Contractor’s representative. If delay is incurred, the Subcontractor shall immediately undertake
measures to catch up on the delay.
Sub-Clause 3.4 – Extension of Time for Completion
No extension of time for completion of the Works shall be made without the Contractor’s prior
written consent, However, in case that the extension of time due to force majeure or any other
reasons beyond the Contractor’s control has been granted to the Contractor by the Client or his
authorized representative(s), equal time extension to the extent applicable to the Subcontract
shall be granted to the Subcontractor.
If any delay of the Work is occurred by the Contractor’s negligence, non-preparation in site or
default, the Completion time of Subcontractor’s work shall be extended accordingly.
Sub-Clause 3.5 - Liquidated Damages for Delay
In the event that the Subcontractor fails, for any reason, to comply with the time for completion
for any part work and/or the whole Works stipulated in the Subcontract Documents within the
prescribed time or extended time approved by the Contractor, the Subcontractor shall pay to the
Contractor 0.1% of the Subcontract Amount stipulated in Cause 4 hereinafter per day as
Liquidated Damages(L/D) for each delayed calendar day. Total sum of L/D shall not exceed
“10%” of the Subcontract Amount. The Contractor may, without prejudice to any other method of
recovery, deduct the amount of such damages from any monies due or to become due to the
Subcontractor. The payment or deduction of such damages shall not relieve the Subcontractor
from his obligation to complete the Subcontract Works, or from any other of his obligations and
liabilities under the Subcontract Documents.
CLAUSE 4 - SUBCONTRACT AMOUNT
The Subcontract Amount made based on the Fixed Unit Prices and Lump Sum, which shall be
US$ ........ ..... (In words : US doll ars .... ...... ...... ..... ...... ...... ...... .... ) as
proposed by the Subcontractor in the Bill of Quantities.
The fixed unit rates and prices as well as lump sum item(if any) in the Bill of Quantities proposed
by the Subcontractor shall be deemed to include all the local taxes except VAT, duties and other
charges that may be levied in Indonesia where the works to be performed, in accordance with
the relevant laws and regulations on the productions, manufacture, sale, importation of the
Subcontractor’s equipment & plant, materials and supplies but not materials free-issued by the
C o n t r a c t o r t o b e u s e d f o r t h e

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performance of the Works.
The fixed unit rates and prices as well as lump sum item(if any) in the Bill of Quantities proposed
by the Subcontractor shall be deemed to include all overhead, profit, direct and indirect costs
required for the performance of the Subcontract works including, but not limited to, the insurance
premium to meet the requirements of the Subcontract between the Contractor and the
Subcontractor to cover the Works.
And further, the fixed unit rates and prices as well as lump sum item(if any) shall be deemed to
be the full inclusive value of the Works and shall be deemed to cover all costs and expenses in
connection therewith including, but not limited to:
- The cost of labor, material, goods, consumables, equipment & plant, tools and all costs in
connection therewith.
- Transporting, fixing, erecting and installing or placing the Works in position.
- Temporary Works
- General obligations, liabilities and risks involved in the execution of the Works including, but
not limited to, all necessary expenses, and compensations regarding accidents involving
physical injury and/or death.
- All preliminary items such as safety requirements, quality control, taxes/custom duties, fees,
permits, licenses, establishment charges, supervisions, overhead and profit, etc.
- Any expenses for remedy of defects, repair, test and trial as well as provision of all materials
related to the Works. The expenses for NDE shall be adjusted on the actual basis. The
additional costs and expenses for NDE exceeding US$ ............(in words: US dollars
...........................) shall be borne by the Contractor.
- All the applicable taxes for the fabrication and erection including Business Receipts Tax,
Corporate Income Tax, Personal Income Tax/Withholding tax, Contractor’s Tax and etc.
This amount shall not either be increased or be decreased unless any variation order shall be
issued and approved by the Contractor.
It shall not demand any increase on fixed unit prices as it was considered that the Subcontractor
has proposed the fixed unit rates and prices on the basis of his review of all the site conditions
and situation including, but not limited to, land, location, required materials, and investigation of
work place and awareness of the Subcontract Documents.
In case that the additional costs are occurred by affecting the Subcontractor’s works in the sote
conditions and situation which the Subcontractor has not been informed, the both Parties may
discuss to fix the additional costs.
If there is the increase of quantities and additional works, both parties shall discuss together and
agree the variation order of works under mutual consent.

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After the Subcontractor prepares the some portion of the Works such as mobilization of
workmanship and materials, any decrease of the works shall not be made.
No price adjustment shall be considered to the Subcontractor in respect of rise or fall in the cost
of labor and/or materials, construction equipments, services, transport or any other matters
affecting the cost of execution in the Subcontract Documents.
CLAUSE 5 - TERMS AND CONDITIONS OF PAYMENT
All payment due to the Subcontractor shall be made in United States Dollars (US$) by money
transfer or by check to the Subcontractor’s Account with the bank designated by the
Subcontractor.
The documents necessary for Invoicing are:
- Subcontractor’s invoice; and
- Interim certificate approved by the Contractor.
Sub-Clause 5.1 – Advance Payment : Ten percent (10%) of the Subcontract Price
Sub-Clause 5.2 - Monthly Progress Payment(80%)
The Subcontractor’s application for the Interim Payment shall be reviewed and approved by the
Contractor.
Sub-Clause 5.3 – Final Payment (10%)
Ten percent (10%) of the Subcontract Price, shall be paid after completion of the Works.
Every Interim Payment shall be made from the Contractor to the Subcontractor within thirty(30)
days after the date of receipt of the Subcontractor’s application/invoice fully compliant with the
required supporting documents. The Subcontractor’s application for the interim payment shall be
made on the last day of each month.
Sub-clause 5.4 – Deduction of Taxes, Charges and Other Impositions
Taxes (including subcontractor’s Final Income Tax), charges and any other impositions to be
levied by the Subcontractor shall be deducted from the Monthly Progress Payments, if any. All
the relevant evidences of the payment shall be provided to the Subcontractor. The 10% VAT of
each Invoicing amount shall be added on the invoice and paid by the Contractors.
CLAUSE 6 – PERFORMANCE SECURITY
The Subcontractor shall, within 15(fifteen) days after the execution of the Subcontract
Agreement, submit an unconditional and irrevocable Performance Security in the form of a Bank
Guarantee attached herewith, issued either by a reputable international bank or a scheduled
bank located in Indonesia, acceptable to the Contractor in the sum of ten percent(10%) of the

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Subcontract Amount to the Contractor. The Bank Guarantee for the Performance Security shall
be valid until thirty(30) days after issuance of Completion Certificate with respect to the whole
Subcontractor’s Works by the Contractor as specified in Clause 13 hereinbelow.
No claim shall be made against such security after the issue of the Completion Certificate, in
accordance with the Subcontract Documents and the security shall be returned to the
Subcontractor within twenty(20) days of the issue of the said Completion Certificate subject to
the Subcontractor’s provision of the Guarantee for Defects Liability to the Contractor stipulated in
Clause 15 hereinbelow.
CLAUSE 7 – ASSIGNMENT OF SUBCONTRACT AND SUB-SUBCONTRACTING
The Subcontractor may assign some part of the Works including erection in the site to third party
with consent of the Contractor.
Any such consent shall not relieve the Subcontractor from any liability or obligation under the
Subcontract and he shall be responsible for the acts, defaults and neglects of any his agents,
servants or workmen as fully as if they were the acts, defaults or neglects of the Subcontractor,
his agents, servants or workmen.
CLAUSE 8 – SUBMISSION OF AWORK SCHEDULES AND REPORTS
Upon signing this Subcontract Agreement, the Subcontractor shall submit for the Contractor’s
approval, a Work Schedule by which he proposes to carry out the Works including his
Manpower, Materials and Equipment Schedules. The Contractor shall have the right to require
the Subcontractor to submit revised schedules as may be necessary to ensure completion of the
Works by the Date for Completion. No schedule shall be revised without the Contractor’s
approval.
The Subcontractor shall submit to the Contractor daily, weekly and monthly progress reports
with photographs, if necessary, showing the Works he carried out.
The Subcontractor shall recognize that the Contractor shall manage the progress schedule
control with CPM method and shall submit to the Contractor updated data when requested.
The Subcontractor shall, whenever required by the Contractor, also provide in writing for his
information a general description of the arrangements and methods which the Subcontractor
proposes to adopt for the execution of the works.
CLAUSE 9 – SUBCONTRACTOR’S PERSONNEL, MATERIALS AND EQUIPMENT
The Subcontractor shall have full responsibility for his employees and shall pay all their salaries
and other benefits such as workmen’s compensation insurance, income taxes, etc., in
accordance with the applicable laws of Indonesia. The Subcontractor shall be responsible for all
accommodations, foods, water, transportation, medical expenses, communication, safety

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gadgets/apparels, licenses and anything that his employees may need in the proper and safe
execution of their respective works.
The Contractor shall have the right to object to and require the Subcontractor to remove from the
Site any person provided by the Subcontractor who, in the opinion of the Contractor,
misconducts himself, or is incompetent or negligent in the proper performance of his duties, or
whose presence at Site is otherwise considered by the Contractor.
Any person who the Contractor was and has not desired shall not again be allowed upon the
Site without the approval of the Contractor. Any person removed from the Site shall be
immediately replaced with a new capable person.
In case that it becomes clearly apparent to the Contractor that the Works will not be completed
within the Date for Completion, the Subcontractor shall increase the number of his personnel,
equipment and other resources as may be necessary to ensure completion of the Works within
the Date for Completion without any additional cost to the Contractor.
The Subcontractor’s personnel, materials, equipment and other resources mobilized to Site shall
be used exclusively for the Works. If for any reason, the Subcontractor wants to remove some of
his material, manpower or equipment from the Site, the Subcontractor shall ask for a written
permission from the Contractor. Removal of any materials, manpower or equipment shall not be
made without prior written approval of the Contractor.
CLAUSE 10 – SECURITY, SAFETY, TRAFFIC CONTROL AND ENVIRONMENT
The Subcontractor shall be responsible in ensuring the safety and security of all his personnel,
materials and equipment and shall provide all things necessary to ensure the safety and security
of his personnel, materials, equipment and the Works including their protection from any attack
by outside forces e.g. bandits or terrorists.
The Subcontractor shall take all reasonable safety precautions with respect to his work and shall
comply with all safety measures initiated by the Contractor and with all applicable laws,
ordinances, rules, regulations and orders of any public authority for the safety of the persons/
workers/staffs or property in accordance with the requirements of the Subcontract Documents.
The Subcontractor shall report within twenty four(24) hours to the Contractor any injury to any of
the Subcontractor’s employees at site.
The Subcontractor shall be responsible in providing all materials and personnel necessary to
implement effective traffic control to facilitate the proper execution of the Works and the safety of
vehicular traffic as well as the public.
The Subcontractor shall employ or deploy Safety Manager(s)/Controller(s) in charge of safety of
the Subcontractor’s Works and his employees.
The Subcontractor shall be responsible in ensuring proper care and consideration on the
environment such that no adverse effects shall result on the environment either directly or
indirectly from the Subcontractor’s operations.

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CLAUSE 11 – SUBCONTRACTOR’S RESPONSIBILITY
The Subcontractor shall indemnify and hold harmless the Contractor and all of his agents and
employees from and against all claims, damage, losses and expenses arising out of or resulting
from default or acts or omissions caused by the Subcontractor.
Upon the instruction of the Contractor, the Subcontractor shall remove and rectify, at his own
cost, any work which is not performed in accordance with the Subcontract Documents.
The Subcontractor shall take fully responsible in respect of any damages or compensation
payable by law, in respect or in consequence of any death, accident, illness or injury to any work
man or any employee(s) of the Subcontractor arising out of or in the course of his or her work for
the Subcontractor including all civil and/or criminal cases relate to it.
The Subcontractor shall take responsible for any mistake and/or error in respect of Quantity, Unit
Price and etc. caused by his negligence. It shall not be reason to increase or change the
Subcontract Amount stipulated in Clause 4 hereinabove.
If the Subcontractor intends to claim any additional payment and others pursuant to any Clause
of the Subcontract Documents, the Subcontractor shall give notice of his intention to the
Contractor within seven(7) days after the event giving rise to the claims has first arisen.
Otherwise, such claims shall be deemed to be waived. In case the Subcontractor does not make
any claim against the Contractor, the Contractor shall be exempted from the all obligations and
responsibilities relevant to the Subcontract Documents.
The Subcontractor shall not claim the Contractor in relation to the Subcontract Documents
unless the cause of any claim is due to the Contractor’s direct default or negligence. Similarly,
the Contractor shall not claim the Subcontractor in relation to the Subcontract Documents unless
the cause of such claim is due to the Subcontractor’s direct default or negligence.
The Contractor shall not take any responsibility to compensate the Subcontractor for any claim
to the Client or other Government Authorities or the third party beyond the compensation or
decision made by the Client, Government Authority or the third party, if such claim is not due to
the Contractor’s direct default or negligence.
The Subcontractor warrants that all materials furnished and incorporated by him to the work
shall be new unless otherwise specified or approved in advance by the Contractor, and that all
work under this Subcontract shall be of good quality free from defaults, defects and in
accordance with the Subcontract Documents.
The Subcontractor shall promptly submit all kind of drawings and samples as required in order to
perform his work efficiently, expeditiously and in a manner that will not cause delay in progress
of the Contractor’s or any other Subcontractor’s work, if any.

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The Subcontractor shall submit periodic(i.e. daily, weekly and monthly) progress reports on the
Works as instructed by the Contractor, including information on the status of materials,
equipment and manpower to be taken into the project site, which may be in the course of
preparation or manufacturing.
The Subcontractor shall cooperate with the Contractor in scheduling and performing his work to
avoid any conflict or interference with the works of the Contractor or other Subcontractors, if any.
Plant, equipment, temporary works, permanent works and materials brought into the project site
by the Subcontractor shall be entirely at his own risk and the Subcontractor shall be fully and
solely responsible for any damage or loss to them.
The Subcontractor shall execute and complete the Works in accordance with the completion
schedule stipulated in Clause 3 hereinabove.
The Subcontractor shall be responsible of any fault, deficit or conflict related to the Subcontract
Works, practicing, manufacture, system, details, cross-section, account etc. it taken delivery
and/or it produced.
CLAUSE 12 – CLEARANCE OF SITE ON COMPLETION
Within one(1) week after the issue of any Completion Certificate, the Subcontractor shall clear
away and remove from that part of the Site to which such Taking-Over Certificate relates all
Subcontractor’s Equipment, surplus material, rubbish and Temporary Works of every kind, and
leave such part of the Site and Works clean and in a workmanlike condition to the satisfaction of
the Contractor. Otherwise, the Contractor may thereafter clear the Site and all clearing costs and
expenses incurred by the Contractor in connection therewith shall be deducted from whatever
amount that may be due to the Subcontractor.
Notwithstanding the above, the Subcontractor may be entitled to retain on Site, until the end of
the Defects Liability Period, such materials, Subcontractor’s Equipment and Temporary Works
as are required by him for the purpose of fulfilling his obligations during the Defects Liability
Period.
CLAUSE 13 – COMPLETION CERTIFICATE
When the whole of the Works have been substantially completed and have satisfactory passed
any Test in Completion prescribed by the Subcontract Documents, the Subcontractor may give a
notice to that effect to the Contractor. Such notice shall be deemed to be a request by the
Subcontractor for the Contractor to issue a Completion Certificate in respect of the Subcontract
works. The Contractor shall, within thirty(30) days of the date of delivery of such notice, either
issue to the Subcontractor a Completion Certificate, stating the date on which, in his opinion, the
Works has been substantially completed in accordance with the Subcontract Documents, or give
instructions in writing to the Subcontractor specifying all the work which, in the Contractor’s
opinion, is required to be done by the Subcontractor before the issue of such Certificate. The
Contractor shall also notify the Subcontractor of any defects in the Subcontract works affecting

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substantial completion that may appear after such instructions and before completion of the
Works specified therein. The Subcontractor shall be entitled to receive such Completion
Certificate within thirty(30) days of completion, to the satisfaction of the Contractor, of the Works
so specified and remedying any defects so notified.
CLAUSE 14 – DEFECTS LIABILITY PERIOD
The Subcontractor shall not be considered as completed until a Final Acceptance Certificate
shall have been issued by the Contractor, stating the date on which the Subcontractor shall have
completed his obligations to execute and complete the Works and remedy any defects therein to
the Contractor’s satisfaction. The Final Acceptance Certificate shall be given by the Contractor
within thirty(30) days after the expiration of the Defects Liability Period, or, if different defects
liability periods shall become applicable to different sections or parts of the Works, the expiration
of the latest such period, or as soon thereafter as any work instructed have been completed to
the satisfaction of the Contractor.
The Defects Liability Period of the Works shall be two(2) years after the Completion Certificate
has been issued by the Contractor.(The Defects Liability Period in excess of two(2) years shall
be applied the same period of Frame Act on the Construction Industry of Korea)
CLAUSE 15 – GUARANTEE FOR DEFECTS LIABILITY
The Subcontractor shall submit a guarantee for Defects Liability(hereinafter referred to as the
“Guarantee for Defects Liability”) to the Contractor by Bank Guarantee at the rate of ten percent
(10%) of the Subcontract Amount stipulated in Clause 4 hereinabove after the Completion
Certificate has been issued by the Contractor.
The Bank Guarantee period shall be valid until 30(thirty) days after expiration of the Defects
Liability Period stipulated in Clause 14 hereinabove.
The guarantee shall be returned to the Subcontractor within twenty(20) days of the issue of the
Final Acceptance Certificate by the Contractor.
In case the Subcontractor fails to respond to request of the Contractor to rectify the defects
during the Defects Liability Period in accordance with Clause 14, the Contractor may forfeit the
Guarantee for Defects Liability.
CLAUSE 16 – TERMINATION OF SUBCONTRACT
The Contractor shall have the right to terminate the Subcontract on a five (5) day prior notice to
the Subcontractor at any time any of the following occurs:
- When the Subcontractor fails to perform any of his responsibilities under this Subcontract, in
which case the Subcontractor shall be paid for the completed Works based on the
Subcontract Unit Rates.

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- When in the Contractor’s opinion the continued operation of this Subcontract may unduly
prejudice his interests, in which case the Subcontractor shall be paid for the completed Works
on ‘quantum merit’ basis.
CLAUSE 17 – OTHER CONDITIONS
The followings, but not limited to, shall be deemed to be unacceptable causes of delay to the
Contractor. The Contractor may, after giving seven(7) day prior notice to the Subcontractor,
terminate the employment of the Subcontractor as well as the Subcontract without releasing the
Subcontractor from any of his obligations or responsibilities under the Subcontract Documents.
- Unavailability of materials, equipment where those are to be supplied and used by the
Subcontractor.
- Shortage of staff and labor.
- Unavailability of the Subcontractor to discuss and solve problems.
- Repudiation of Subcontract.
- Failure to commence the works in accordance with Clause 3 hereinabove.
- Persistent or intentional neglect to comply with any obligations or responsibilities under the
Subcontract Documents, despite previous written warning notice from the Contractor.
- Going into bankruptcy.
- Persistent or repeated refuse or failure to supply enough skilled workers or proper materials.
- Failure to make prompt payment to his suppliers for materials or labors, if any.
- Persistent disregard for laws, ordinances, rules, regulations for orders of any public authority
having jurisdiction.
- Facing with the maximum liquidated damages for the delay of the Works.
In the event of termination decided by the Contractor due to the aforesaid reason, the Contractor
shall take possession of the site with all the materials, equipment, tools, construction equipment
and machineries thereon owned by the Subcontractor and may finish the Works whatever
method it may deem expedient. In such a case, the Subcontractor shall not be entitled to receive
any further payment until the Works is finished. The Contractor may hire other subcontractor(s)
to remedy the same, and the cost therefor shall be born by the Subcontractor or deduct the
equal amount from any payment due to the Subcontractor, so that the Contractor can make due
payment to the hired subcontractor(s) to perform/remedy the Works.

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In case that the Subcontractor’s accumulated work progress is less than eighty five percent
(85%) of the targeted work progress in the work schedule which was submitted by the
Subcontractor and consented by the Contractor for and every one(1) month as compared with
the completion schedule specified in Clause 3 hereinabove, and further that despite the
Contractor’s written notice to rectify such situation, the Subcontractor has failed to achieve his
work progress at least by ninety percent(90%) of the targeted work progress till the next 1(one)
month, the Contractor may terminate this Subcontract.
The Subcontractor shall also be responsible for the customs clearance of all imported materials
and equipment and for getting working & living permission from the Government Authorities
concerned, if required.
The Subcontractor shall agree in the event of termination of the Contractor’s Works, this
Subcontract shall also be automatically terminated and if such termination is not due to the
Contractor’s default, indemnification of the Subcontractor shall be in line with the provisions of
the Agreement made between the Client and the Contractor. If such termination is caused by
reasons related solely to the Contractor, the Contractor shall be liable only for labor and
materials furnished up to the date of the receipt of the notice of such termination. The
Subcontractor further agrees that the termination by the Client, unless caused due to the
Contractor, is recoverable only in-so-far as to the extent therein applicable to this Subcontract as
allowed for by the Client.
CLAUSE 18 – INSURANCE
The Subcontractor shall effect the insurances for his workers compensation prior to commencing
the Subcontract Works.
CLAUSE 19 – SETTLEMENT OF DISPUTES
If any conflicts or disputes of any kind whatsoever arise between the Contractor and the
Subcontractor in connection with, or arising out of, the Subcontract for the execution of the
Works, whether during the execution of the Works or after completion of the Works, shall be, in
the first place, amicably settled by the parties within a period of forty(40) days from the date
any of the Parties has noticed the other of the existence of a dispute.
However, in case both parties fail to reach an amicable settlement, the conflict or dispute shall
be finally settled by arbitration in Singapore under the Rules of Conciliation and Arbitration of
International Chamber of Commerce. The award rendered by the three(3) arbitrators shall be
final and binding upon both parties concerned.
The language to be used in arbitral proceeding shall be English.
CLAUSE 20 – GOVERNING LAW AND LANGUAGE

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This Subcontract shall be governed by and take effect in accordance with the Laws of Republic
of Indonesia. The wording of the Subcontract Documents shall be construed in accordance with
the normal usage of the English language as related to the Works of this nature.
and all communications in accordance with this Subcontract shall be in English language.
CLAUSE 21 – COMMUNICATION
All notices required or permitted to be given under or pursuant to Subcontract Documents
between the Parties shall be sent, in English, to the following addresses.
Any notice by telephone shall be confirmed by the supporting documents.
To the Contractor :
_________________________
- Attention : ...................., Authorized Representative
- Address : .........................................................................................................
- Telephone : ......................
To the Subcontractor
PT. ___________________
- Attention : Managing Director
- Address :…...................................................................................................
- Telephone : ........................
CLAUSE 22 – VALIDITY OF THE SUBCONTRACT
This Subcontract shall be valid and come force from the date when the following conditions are
fulfilled by the Subcontractor and the Contractor.
- Signing of the Subcontract Agreement by both Parties’ authorized representatives.
- Providing the Performance Security by the Subcontractor to the Contractor.
The Subcontractor shall be paid for actual quantity of his Works performed by himself and
certified and approved by the Contractor for the work items specified in the Bill of Quantities of
the Subcontract Documents, if the Subcontract Agreement will be terminated due to the breach
of the Subcontract Documents by any default of the Subcontractor specified in the Subcontract
Documents.
IN WITNESS WHEREOF, the Parties hereto have hereunto set their hands on the date and at
the place first above written.

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For and On behalf of For and On behalf of
______________________ PT. _______________
______________________ __________________
Authorized Representative President Director