Buyer Builder Agreement Template for Indonesia

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Key Requirements PROMPT example:

Buyer Builder Agreement

"I need a Buyer Builder Agreement under Indonesian law for the construction of a luxury villa complex in Bali, with completion scheduled for March 2025, including specific provisions for sustainable materials and local architectural elements."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Residential Property

Commercial Property

Industrial Development

Infrastructure

Hospitality

Retail

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Construction Management

Project Management

Property Development

Architecture

Engineering

Procurement

Quality Assurance

Risk Management

Compliance

Operations

Finance

Contract Administration

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Administrator

Property Developer

Architect

Structural Engineer

Quantity Surveyor

Site Manager

Risk Manager

Compliance Officer

Procurement Manager

Property Manager

Building Inspector

Quality Control Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental legal framework for contracts, including formation, validity, obligations, and remedies for breach of contract
Law No. 2 of 2017 on Construction Services: Regulates construction services, including rights and obligations of construction service providers, safety requirements, and professional standards
Law No. 1 of 2011 on Housing and Settlement Areas: Governs housing development, including requirements for developers, building standards, and residential area planning
Law No. 8 of 1999 on Consumer Protection: Protects buyer interests, including quality guarantees, fair treatment, and dispute resolution mechanisms
Government Regulation No. 29 of 2000 on Construction Services: Implements construction service regulations, including contract requirements, performance standards, and dispute settlement
Law No. 28 of 2002 on Buildings: Sets requirements for building construction, including technical standards, permits, and safety requirements
Minister of Public Works Regulation No. 29/PRT/M/2006: Provides technical guidelines for building permit requirements and building technical standards
Law No. 32 of 2009 on Environmental Protection and Management: Sets environmental requirements and standards for construction projects
Law No. 13 of 2003 on Manpower: Governs labor relationships and requirements in construction projects, including worker safety and rights
Government Regulation No. 14 of 2016 on Housing and Settlement Areas: Details implementation of housing development regulations, including technical requirements and development standards
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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