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TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx

Jan. 28, 2023
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
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TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
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TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx
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TECHNICAL ASSISTANCE & CONSULTANCY SERVICE AGREEMENT- CLEAN DRAFT.docx

  1. Page 1 of 10 TECHNICALASSISTANCE & CONSULTANCY SERVICE AGREEMENT FOR OPERATION AND MAINTENANCE OF POWER PLANT IN _______________________ BY AND BETWEEN: PT. _________________________ AND PT. _________________________ 1ST OF DECEMBER 20_,_, This Technical Assistance and Consultancy Service Agreement for Operation and Maintenance of Power Plant in ...................................................... (hereinafter referred to as the “Agreement”) is made and entered into on this day, ............, December 1st , 20_,_, by and between:
  2. Page 2 of 10 1. PT. _________________________, a company duly established and existing under the laws of the Republic of Indonesia, having its address at .................................................................. (hereinafter referred to as the “Owner”); and 2. PT. _________________________, a company duly established and existing under the laws of the Republic of Indonesia, having its address at ................................................................. (hereinafter referred to as the “Contractor”). (The Owner and the Contractor are hereinafter collectively referred to as the “Parties” and severally as the “Party”) WITNESSETH A. Whereas, the Owner is the owner of plywood factory which located at .................................. (the “Plywood Factory”) including the power plant which established at the Plywood Factory (the “Power Plant”); B. Whereas, to conduct the proper operation and maintenance the Power Plant, the Owner is needs to get the technical assistance and training in regards with the operation of the Power Plant and/or technical routine assistance and/or inspection of the Power Plant in regards with maintenance of the Power Plant (hereinafter referred to as the “Services”) from the party who have the expertise and experience in the operation and maintenance of the power plant; C. Whereas, the Contractor is a party who has the expertise and experience in the operation and maintenance of the power plant, therefore, the Owner is desires to engage and appoint the Contractor conduct and provide the Services for the Power Plant which located in the Plywood Factory to the Owner, and the Contractor is desires to accept such appointment from the Owner. Now therefore, in consideration of the mutual premises and covenants herein contained, the Parties hereby agree as follows: ARTICLE 1 SCOPE OF SERVICES 1.1. Subject to the terms and conditions of this Agreement and/or any documents referred herein, the Owner agrees to appoint and engage the Contractor to conduct and provide the Services and the Contractor agrees to accept the appointment from the Owner to conduct and provide the Services which will be separated into the following types of the Services: 1.1.1. The regular technical routine assistance, training, maintenance and inspection in regards with the operation and maintenance of the Power Plant (hereinafter referred to as the “Regular Service”); and 1.1.2. The special technical assistance, maintenance and/or inspection for emergency case or request from the Owner (if any) of the Power Plant (hereinafter referred to as the “Special Service”).
  3. Page 3 of 10 1.2. For the purpose and implementation of the Services, whether in the form of Regular Service and/or Special Service (if any), the Contractor shall provide, assign and send to the Power Plant 1 (one) special technician who has the skills, qualification, experience, knowledge and expertise, in accordance with the highest industry standards and practices, in the operation and maintenance of the power plant and has worked at the plywood factory (hereinafter referred to as the “Technician”). Provided however, in the event that, based on the Owner judgment, the Technician which provided by the Contractor is not capable to conduct the Services and/or the Technician is not in accordance and/or in line with the Owner’s requirements and/or needs, the Owner shall has the rights to request to the Contractor to replace and/or to change the Technician with another Technician, which in accordance and/or in line with the Owner’s requirements and/or needs, not later than 2 (two) calendar days since the official written request has been sent by the Owner to the Contractor. 1.3. During the Term of the Agreement (as defined herein), the Regular Service shall be conducted by the Contractor in 7 (seven) days per month (including travelling time of the Technician). The actual schedule for the Regular Service for each month will be further agreed by the Parties in every respective month. 1.4. During the Term of the Agreement (as defined herein), the Regular Service shall be conducted by the Contractor in the following manner: 1.4.1. The Contractor shall provide the technical advice for the operation and maintenance of the Power Plant including proposal for modification and/or necessary action for proper and safe operation of the Power Plant. 1.4.2. All the necessary provision of tools and material required for the appropriate activity shall be provided by the Owner. 1.4.3. The required traveling cost from the Contractor’s office to the Owner’s Plywood Factory shall be borne by the Owner. 1.4.4. The Contractor shall provide technical training for the operators in regular basis including material for the proper education. 1.4.5. During the overhaul of the Power Plant, the Contractor shall provide necessary advice for the execution of the work while the Owner shall be responsible for the provision of necessary workers and equipment/tolls required for the overhaul. 1.5. During the Term of the Agreement, the following items shall be provided by the Owner at the Power Plant: 1.5.1. Accommodation and meals of the Technician at the Power Plant; 1.5.2. The tools and equipment which required to conduct the Services, whether in the form of Regular Service and/or Special Service (if any), which available in the Plywood Factory including its uses by the Technician; 1.5.3. Any fuel, water, electricity, lubricants which required in conducting the Services (whether in the form Regular Service and/or Special Service (if any)) in the Power Plant. ARTICLE 2
  4. Page 4 of 10 SERVICE FEE, TAXES AND TERMS OF PAYMENT 2.1. The Parties agree that for the service fee for the Services that performs by the Contractor in accordance with this Agreement, the Owner shall pay the service fee to the Contractor in the amount as follow: 2.1.1. The service fee for the Regular Service shall be in the amount of USD ............ (in words: .................................... United State of America Dollars only) per month (hereinafter referred to as the “Regular Service Fee”) including income tax (Pajak Penghasilan/PPh). 2.1.2. The service fee for the Special Service to be per diem rate basis shall be in the amount of USD .............. (in words:....................................... United State of America Dollars only) (hereinafter referred to as the “Special Service Fee”). 2.2. The Regular Service Fee and/or the Special Service Fee (if any) are excludes: 2.2.1. Value Added Tax (VAT); 2.2.2. Travelling cost of the Technician; 2.2.3. Any government taxes and/or all other charges to be levied in the Indonesia which shall be borne by the Owner (if any); 2.3. During the Term of the Agreement (as defined herein), the Regular Service Fee and the travelling cost of the Technician shall be paid by the Owner to the Contractor at the end of every month, provided that the Owner has received the invoice for the respective payment from the Contractor not later than 7 (seven) business days before the due date of the respective payment. 2.4. During the Term of the Agreement (as defined herein), the Special Service Fee (if any) shall be paid by the Owner to the Contractor not later than 7 (seven) business days since the Owner has received the invoice for the respective payment from the Contractor. 2.5. The Service Fee shall be paid by the Owner to the Contractor into the Contractor’s bank account which may designated in written from time to time by the Contractor. 2.6. All the bank charges incurred from the transfer process of the Service Fee shall be borne by the Owner and all the bank charges of incurred from the receiving the Service Fee shall be borne by the Contractor. 2.7. Except as otherwise stipulated herein, all taxes arising out or in connection with this Agreement shall be borne by the Party in accordance with applicable tax laws. ARTICLE 3 TERM OF AGREEMENT 3.1. The Agreement shall be valid and bind the Parties for a period of 1 (one) year from the signing date of the Agreement (hereinafter referred to as the “Term of Agreement”).
  5. Page 5 of 10 3.2. The Term of Agreement can be extended according to mutual written consent from the Parties. ARTICLE 4 PERMITS Subject to the prior approval from the Owner and if required to conduct the Services (whether in the form of Regular Service and/or Special Service): 4.1. The Contractor and/or its Technician shall be allowed to get free access to the Power Plant and reserve right to open any operational document to check the actual status of the plant operation; and 4.2. The Contractor and/or its Technician shall have the right to order necessary work directly to the operators or works under the control of the Owner for the necessary action required for the proper operation of the Power Plant. ARTICLE 5 REPORT The Contractor shall provides/issues and submits to the Owner, the realization report of scope of work in every visit at the Power Plant, accumulation report that could be judgment by the Owner for payment basis or continual contract. ARTICLE 6 WARRANTY 6.1. The Contractor warrants and guarantees that the Services which will be and/or have been conducted, provided, performed and completed by the Contractor in accordance with and as stipulated in this Agreement and/or any documents referred herein is and will be: a. free from any defects and/or faults in workmanship; b. performs in a workmanlike manner by a skilled and qualified Technician in accordance with the highest industry standards and practices; c. not violates and/or breaches any and all applicable law and/or any other regulations and/or any other agreement which the Contractor is a party or bound by it. 6.2. The Contractor undertakes, warrants and guarantees that the Contractor and/or its Technician, officers, administrators, representatives, successors and/or permitted assigns whose performing the Services on behalf of the Contractor will at all times comply with any and all applicable law and/or any security regulations and/or company’s and/or factory regulation in effect from time to time which applies in Indonesia and/or in each Plywood Factory when the Services is being conducted and/or performed. 6.3. In the event that the Owner found that the Services which conducted, provided, performed, completed and/or installed by the Contractor is defect and/or faults and/or not in accordance with the Agreement and/or any documents referred herein, then the Contractor shall change and/or repair and/or replace any part and/or whole part of the Services, which determined as defects and/or fault and/or not in accordance with the Agreement and/or any
  6. Page 6 of 10 documents referred herein by the Owner, without imposition of additional cost including without limitation to the repair cost, replacement cost, fabrication cost, transportation cost, accomodation cost, labour cost and/or delivery cost. ARTICLE 7 CONFIDENTIAL INFORMATION 7.1. Unless required otherwise by law and/or court and/or arbitration order and/or decision and/or any government authority, the Contractor and/or its Technician, officers, administrators, representatives, successors and/or permitted assigns shall treat as confidential all information concerning the Owner and/or its business and the performance of the Services and/or the Power Plant and/or the Plywood Factory (hereinafter referred to as the “Confidential Information”). 7.2. The Contractor will only use the Confidential Information as required in and for the performance of the Services and the Contractor will not and shall not divulge such Confidential Information to any party other than the persons designated and/or approved in written by the Owner or the Owner’s representative. In the event the Contractor and/or its Technician, officers, administrators, representatives, successors and/or permitted assigns is required to furnish such Confidential Information to court and/or arbitration and/or any government authority and/or as required by law, the Owner shall be notified in written by the Contractor prior to the disclosure of such Confidential Information. 7.3. The Contractor and/or its Technician, officers, administrators, representatives, successors and/or permitted assigns is obliged to hold Confidential Information and shall do so until the termination or expiration of this Agreement. The Contractor and/or its officers, administrators, representatives, successors and/or permitted assigns shall return to the Owner all information made available for the Contractor to carry out the Services. All information, data and/or products shall remain the property of the Owner. 7.4. The Contractor and/or its Technician, officers, administrators, representatives, successors and/or permitted assigns obligation of confidentiality under this Agreement is a continuing obligation and shall remain in force during the term of the Agreement and shall remains survive after the termination and/or the expiration of the Agreement and afterwards for a period of 2 (two) years. 7.5. Without prejudice to any other rights and remedies which the Owner may has under the applicable law, any breach to this provision that conducted by the Contractor and/or its Technician, officers, administrators, representatives, successors and/or permitted assigns shall gives the Owner the rights to claim, demand, suit, action, proceed and/or prosecute the Contractor and/or its Technician, officers, administrators, representatives, successors and/or permitted assigns for any damages, losses, costs and/or expenses which incurred by the Owner as the result of or in connection with such breach. ARTICLE 8 TERMINATION OF THE AGREEMENT
  7. Page 7 of 10 8.1. This Agreement shall be expired or terminated only because of the following event: 8.1.1. Automatically expired after any and all obligation of the Parties as stipulated under this Agreement has been fulfilled in full by the Parties; or 8.1.2. Terminated by the Owner by giving not later than 14 (fourteen) days written prior notice to the Contractor, in the event, based on sole Owner’s discretion, the Contractor is breaching any of the provision of the Agreement and/or unable to perform and provide the Services pursuant to the Agreement; or 8.1.3. Terminated by mutual written agreement of the Parties; or 8.1.4. Terminated by the Contractor by giving not later than 30 (thirty) calendar days written prior notice to the Owner, in the event after the Contractor has given 2 (two) times warning letters (each letter shall has 14 (fourteen) days of grace period) to the Owner in order to fulfill its obligations as stipulated in Article 2, the Owner is still unable to perform its obligations as stipulated in Article 2 due to any reason attributable by the Owner; or 8.1.5. Terminated by either Party by giving not later than 14 (fourteen) calendar days written prior notice, in the event that the other Party is dissolved, liquidated, declared bankrupt, or insolvent or becomes a party to proceedings or arrangements involving liquidation, receivership, or the settlement of debt(s). 8.2. In the event the Agreement is terminated by the Parties pursuant to Article 8 paragraph 8.1 sub-paragraph 8.1.3 or in the event the Contractor terminates the Agreement pursuant to Article 8 paragraph 8.1 sub-paragraph 8.1.4 or 8.1.5, then the Owner shall pay to the Contractor the amount outstanding for the Services which the Contractor has accomplished or completed until the date of termination. 8.3. In the event the Owner terminates the Agreement pursuant to Article 8 paragraph 8.1 sub- paragraph 8.1.2, 8.1.4 or 8.1.5, then the Contractor shall return any and all payment of the Service Fee which has been paid by the Owner until the date of termination. 8.4. In case of termination of this Agreement, the Parties hereby agree to waive the provisions as set forth in Article 1266 of the Indonesian Civil Code with regard to the requirement of court pronouncement, decision or decree for the termination of an agreement. ARTICLE 9 GOVERNING LAW AND ARBITRATION 9.1. This Agreement is governed by and constructed in accordance with the laws of the Republic of Indonesia. 9.2. Any disputes, controversies, conflicts, differences and/or other matters which may arise between the Parties, out of or in relation to or in connection with this Agreement, or for the breach thereof, shall be first settle through friendly negotiation between the Parties to achieve an amicable settlement, within 30 (thirty) calendar days since the date of the first formal friendly negotiation meeting is conducted.
  8. Page 8 of 10 9.3. Failure to make amicable settlement of any disputes, controversies, conflicts, differences and/or other matters between the Parties, out of or in relation to or in connection with this Agreement, or for the breach thereof will result such disputes, controversies, conflicts, differences and/or other matters shall be finally settled by arbitration in Badan Arbitrase Nasional Indonesia (“BANI”) in accordance with the Law No. 30 Years 1999 concerning the Arbitration and Alternatives Dispute Resolution and rules of BANI. The place of arbitration shall be in Jakarta, Indonesia. The arbitration proceedings shall be conducted in the English language and shall be conducted before 3 (three) arbitrators which consisting of 1 (one) arbitrator which appointed by the Owner, 1 (one) arbitrator which appointed by the Contractor and 1 (one) of whom shall be appointed by the said 2 (two) appointed arbitrators or in accordance with the appointment from the chairman of BANI. The expense of arbitration shall be borne in accordance with the determination of the board of arbitration. The award rendered by the arbitrators shall be final and binding upon the Parties to the Agreement. For the avoidance of doubt, neither Party shall be entitled to commence or maintain any action in a court of law upon any matter in dispute arising from and/or in relation to this Agreement and/or the transactions contemplated herein. 9.4. The Parties must continue to perform their obligations herein until the arbitrators give their award. ARTICLE 10 ATTACHMENT 1. Power Plant Check List for Daily, Weekly, Monthly and Yearly etc. 2. Reference technical data for the power plant. ARTICLE 11 MISCELLANEOUS 11.1. The Contractor shall not assign, transfer, or otherwise convey its’ obligations hereunder in whole or in part to any individual, firm, corporation, other entity or any other party without the prior written consent of the Owner. In the event the Owner accepted such assignment, transfer and/or conveyance, the relevant assignee and/or transferee (if any) shall be bound by and fulfill the obligations or duties as stipulated in the Agreement. 11.2. Any and all attachments, appendixes, addendum, and/or amendment to the Agreement and/or any documents referred herein shall be regarded as an integral and inseparable part of this Agreement. 11.3. Matters that have not been regulated or insufficiently provided in this Agreement and/or any documents referred herein, will be discussed in good faith by the Parties and will be set out in a written document as an addendum and/or amendment that will be signed by the Parties. 11.4. This Agreement and any documents referred herein and/or any specification as agreed by the Parties from time to time (if any) constitutes the entire agreement between the Parties
  9. Page 9 of 10 with respect to the subject matter hereof and cancels and supersedes any prior understandings and agreement between the Parties with respect thereto. 11.5. In the event that any provision or part of a provision in this Agreement and/or any documents referred herein shall for any reason be determined by any court or arbitral tribunal to be illegal, invalid or unenforceable, then the Agreement and/or any documents referred herein shall not be affected and/or the remaining provisions and other parts of the provision shall not be affected, impaired or invalidated and shall remain in full force and effect and shall continue to be binding upon the Parties. The Parties shall, in any such event, agree on new provision(s) that would replace such provision(s). 11.6. The Contractor is an independent contractor to the Owner and this Agreement does not create any agency, joint venture or partnership between the Parties. The Contractor is and shall be the sole employer and principal of each person which performing the Services on behalf of the Contractor and the Contractor shall be obligated to perform all requirements of an employer under all applicable laws. The Contractor shall not impose or create any obligation or liability of any kind, express or implied, or make any contracts, promises, representations or warranties on behalf of or in the name of the Owner, or to enter into any obligation binding upon the Owner. 11.7. Without prejudice to any other rights and remedies which the Owner may has under the applicable law, any breach to the provisions of this Agreement that conducted by the Contractor shall gives the Owner the right to claims, demands, suits, actions, proceeds and/or prosecutes the Contractor for any damages, losses, costs and/or expenses which incurred by the Owner, and/or to claim indemnity instead of performance to the Contractor, as the result of or in connection with such breach. 11.8. For the avoidance of doubt, the Parties agree that Article 6 paragraphs 6.1 and 6.2, Articles 7, 9, and 11 paragraphs 11.7, 11.8 and 11.9 shall remain survive despite of any termination and/or expiration of the Agreement. 11.9. The Parties have executed this Agreement in the English language, which shall serve as the governing language of the Agreement. If requested by a Party, the Parties will sign a Bahasa Indonesia version of this Agreement. In the absence of a Bahasa Indonesia version, the Parties hereby disclaim any benefit from, or any right to cancel or declare this Agreement null and void because of, the absence of a Bahasa Indonesia version pursuant to the Indonesian Law No. 24 of 2009. PT. _________________________ dan PT. _________________________ telah mengambil semua langkah yang diperlukan baginya untuk memahami dan menyetujui sepenuhnya isi Perjanjian ini dan konsekuensi- konsekuensinya. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on the day and year first above written in 2 (two) identical copies which have equal legal power.
  10. Page 10 of 10 The Owner, PT. _________________________ _________________________ Name: __________________ Title: Director The Contractor, PT. _________________________ _______________________ Name: ________________ Title: Managing Director
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