The Buyer Builder Agreement is a crucial document in Indonesian construction projects that establishes the legal and operational framework between property buyers and construction companies. This agreement is essential when a buyer engages a builder to construct a new building or undertake significant construction works. It must comply with Indonesian construction laws, including Law No. 2 of 2017 on Construction Services and related regulations. The document typically covers all aspects of the construction process, from initial planning to completion and defects liability period, incorporating local building standards, permit requirements, and consumer protection measures. It's particularly important in Indonesia's growing property market where clear contractual terms are essential for protecting both parties' interests and ensuring compliance with local construction regulations.
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1. Parties: Identification of the Builder and the Buyer, including full legal names, addresses, and registration details
2. Background: Context of the agreement, including property details and purpose of construction
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Works: Detailed description of construction works to be performed
5. Contract Price and Payment Terms: Total contract value, payment schedule, and milestone payments
6. Construction Period: Timeframe for completion, including start date and completion date
7. Builder's Obligations: Comprehensive list of builder's responsibilities, including quality standards and compliance requirements
8. Buyer's Obligations: List of buyer's responsibilities including site access and approvals
9. Variations: Process for requesting and approving changes to the scope of works
10. Quality and Standards: Construction standards, materials quality, and compliance with Indonesian building regulations
11. Inspections and Approvals: Process for work inspections, stage completions, and final approval
12. Warranties and Defects: Warranty periods, defects liability, and rectification processes
13. Insurance and Indemnity: Required insurance coverage and indemnification provisions
14. Termination: Circumstances and procedures for contract termination
15. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
16. General Provisions: Standard contract clauses including notices, governing law, and entire agreement
1. Environmental Management: Required when the construction has significant environmental impact or requires specific environmental permits
2. Intellectual Property: Include when custom designs or proprietary construction methods are involved
3. Force Majeure: Detailed force majeure provisions for areas prone to natural disasters or specific risks
4. Financing Arrangements: Include when specific financing terms or mortgage arrangements need to be addressed
5. Site Safety and Security: Additional safety requirements for high-risk construction or sensitive locations
6. Temporary Works: Include when significant temporary structures or facilities are required
7. Resident Engineering Services: Include when ongoing engineering supervision is required
8. Handover and Training: Required for complex buildings with specialized systems requiring user training
1. Schedule 1 - Plans and Specifications: Detailed architectural and engineering drawings, material specifications
2. Schedule 2 - Construction Schedule: Detailed timeline of construction phases and milestones
3. Schedule 3 - Payment Schedule: Breakdown of payments linked to construction milestones
4. Schedule 4 - Site Details: Site plan, boundaries, access points, and existing conditions
5. Schedule 5 - Permits and Approvals: List of required permits and responsibility for obtaining them
6. Schedule 6 - Materials and Finishes: Detailed specifications of materials and finishing standards
7. Schedule 7 - Warranties and Guarantees: Forms of warranties and guarantees to be provided
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage levels
9. Appendix A - Standard Form Variations: Template forms for variation requests and approvals
10. Appendix B - Quality Control Checklists: Inspection and quality control documentation
11. Appendix C - Safety Procedures: Site safety protocols and emergency procedures
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