Document background
The Consortium Agreement Construction Project is a crucial document used when multiple companies collaborate to undertake significant construction projects in Indonesia. This agreement is particularly relevant for large-scale infrastructure, industrial, or commercial construction projects where combining expertise, resources, and capabilities is necessary. The document must comply with Indonesian legal requirements, particularly Law No. 2 of 2017 on Construction Services and related regulations, while incorporating international best practices in construction project management. It addresses essential aspects such as consortium formation, member contributions, project execution methodology, risk allocation, profit sharing, and governance structure. The agreement is designed to create a clear framework for collaboration while ensuring compliance with local content requirements, environmental regulations, and Indonesian business practices. It's particularly important for projects requiring specialized expertise, significant resources, or risk sharing among multiple parties.
