Civil Construction Agreement Template for Indonesia

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Key Requirements PROMPT example:

Civil Construction Agreement

"I need a Civil Construction Agreement for a 20-story commercial building project in Jakarta, Indonesia, with construction scheduled to begin in March 2025, including specific provisions for green building certification and local content requirements."

Document background
The Civil Construction Agreement is a fundamental legal document used for construction projects in Indonesia, structured to comply with Indonesian law, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations. This agreement is essential for any construction project where an employer engages a contractor to perform construction works, whether for commercial, residential, industrial, or infrastructure projects. It provides comprehensive coverage of project execution requirements, including technical specifications, payment mechanisms, quality standards, and risk allocation. The document is designed to protect both parties' interests while ensuring compliance with local construction regulations, building codes, and industry standards. It incorporates specific Indonesian legal requirements regarding construction permits, worker safety, environmental protection, and dispute resolution procedures.
Suggested Sections

1. Parties: Identification of the contracting parties including the employer and contractor, with their respective details and registration numbers

2. Background: Context of the agreement, project overview, and basis for the contractual relationship

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Scope of Works: Detailed description of the construction works to be performed

5. Contract Price and Payment: Payment terms, schedule, and mechanisms including retention and payment milestones

6. Time for Completion: Project timeline, completion dates, and mechanisms for extensions of time

7. Contractor Obligations: Key responsibilities and obligations of the contractor including quality standards

8. Employer Obligations: Key responsibilities and obligations of the employer including site access and approvals

9. Variations: Procedures for handling changes to the scope of work and their cost implications

10. Quality and Standards: Required quality standards, inspections, and compliance with Indonesian building regulations

11. Health, Safety and Environment: HSE requirements and compliance with Indonesian regulations

12. Insurance and Indemnities: Required insurance coverage and indemnification obligations

13. Defects Liability: Defects liability period and remediation obligations

14. Force Majeure: Force majeure events and their consequences under Indonesian law

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Dispute resolution mechanisms including reference to Indonesian jurisdiction

17. Governing Law: Confirmation of Indonesian law as governing law and relevant jurisdictional matters

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for larger projects

2. Advance Payment: Terms for advance payment and associated security, if applicable

3. Nominated Subcontractors: Provisions for employer-nominated subcontractors, if any

4. Archaeological Findings: Procedures for dealing with archaeological discoveries, relevant for projects in cultural heritage areas

5. Intellectual Property Rights: IP provisions where design or innovative construction methods are involved

6. Environmental Management: Detailed environmental requirements for environmentally sensitive projects

7. Local Content Requirements: Provisions for local content and labor requirements, if applicable to the project

8. Anti-Corruption: Specific anti-corruption provisions for government or public sector projects

9. Step-in Rights: Employer's right to step in and complete works, typically for critical infrastructure projects

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical specifications and requirements for the works

2. Schedule 2 - Bill of Quantities: Itemized pricing and quantities for the works

3. Schedule 3 - Project Timeline: Detailed project schedule including milestones and completion dates

4. Schedule 4 - Site Plan and Drawings: Construction drawings, site plans, and technical drawings

5. Schedule 5 - Permits and Licenses: List of required permits and responsibilities for obtaining them

6. Schedule 6 - Key Personnel: List of key personnel from both parties and their roles

7. Schedule 7 - Form of Performance Security: Template for performance security if required

8. Schedule 8 - Payment Schedule: Detailed payment milestones and schedule

9. Schedule 9 - Quality Assurance Plan: Detailed quality assurance and control procedures

10. Schedule 10 - HSE Requirements: Detailed health, safety, and environmental requirements and 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

Infrastructure

Commercial Real Estate

Residential Development

Industrial Construction

Energy

Transportation

Healthcare

Education

Hospitality

Manufacturing

Mining

Oil and Gas

Retail

Telecommunications

Utilities

Relevant Teams

Legal

Operations

Project Management

Procurement

Commercial

Finance

Risk Management

Technical

Quality Assurance

Health and Safety

Environmental

Compliance

Relevant Roles

Project Manager

Construction Manager

Legal Counsel

Contract Administrator

Chief Executive Officer

Chief Operating Officer

Project Director

Site Manager

Procurement Manager

Risk Manager

Commercial Director

Technical Director

Finance Director

Quality Assurance Manager

Health and Safety Manager

Environmental Compliance Officer

Industries
Indonesian Civil Code (KUHPerdata): The fundamental law governing contractual relationships, obligations, and rights of parties in civil agreements in Indonesia
Law No. 2 of 2017 on Construction Services: The primary legislation governing construction services in Indonesia, including requirements for construction companies, project implementation, and contractual obligations
Government Regulation No. 22 of 2020: Implementing regulation for Construction Services Law, detailing technical requirements, certification, and construction service delivery standards
Law No. 13 of 2003 on Manpower: Regulates employment relationships, worker rights, and obligations relevant to construction projects
Law No. 28 of 2002 on Buildings: Establishes requirements for building construction, safety standards, and technical specifications
Law No. 32 of 2009 on Environmental Protection and Management: Sets environmental protection requirements and obligations for construction projects
Minister of Public Works Regulation No. 12/PRT/M/2021: Details technical standards and requirements for construction works and building safety
Law No. 25 of 2007 on Investment: Governs foreign and domestic investment in construction projects and related business activities
Government Regulation No. 5 of 2021: Implementation of risk-based business licensing in the construction sector
Law No. 18 of 1999 on Construction Services: Earlier construction law providing additional context and principles still relevant to construction agreements
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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