Construction Agreement Form Template for Indonesia

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Key Requirements PROMPT example:

Construction Agreement Form

"I need a Construction Agreement Form under Indonesian law for a 20-story commercial office building in Jakarta, with specific provisions for green building certification and phased completion deadlines starting from March 2025."

Document background

The Construction Agreement Form is a vital legal instrument used in Indonesia to formalize construction project relationships between property owners/developers and contractors. This document is essential for any construction project in Indonesia, whether commercial, residential, or industrial, and must comply with Law No. 2 of 2017 on Construction Services and related regulations. The agreement comprehensively covers all aspects of the construction project, including technical specifications, financial terms, timeline, quality standards, and risk allocation. It incorporates specific Indonesian regulatory requirements such as building permits (IMB), environmental approvals, worker safety regulations, and local content requirements where applicable. The document serves as both a legal safeguard and a project management tool, ensuring clear understanding and alignment between all parties involved in the construction process.

Suggested Sections

1. Parties: Identification of the contracting parties (Owner/Employer and Contractor), including their legal details and representatives

2. Background: Context of the agreement, project overview, and basis for the construction contract

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Work: Detailed description of the construction works to be performed by the Contractor

5. Contract Price and Payment Terms: Contract sum, payment schedule, payment mechanisms, and related financial terms

6. Project Timeline: Construction schedule, completion dates, milestones, and provisions for extensions of time

7. Contractor's Obligations: Key responsibilities including workmanship, materials, compliance with laws, and safety requirements

8. Owner's Obligations: Responsibilities of the owner including site access, permits, and approvals

9. Quality Standards: Required quality levels, inspection procedures, and acceptance criteria

10. Health, Safety and Environment: HSE requirements, compliance with regulations, and safety management procedures

11. Variations: Procedures for handling changes to scope, price adjustments, and variation orders

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

13. Default and Termination: Events of default, remedies, and termination procedures

14. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

15. Force Majeure: Provisions for handling unforeseen events and their impact on the contract

16. General Provisions: Standard contractual provisions including notices, amendments, and governing law

Optional Sections

1. Performance Security: Requirements for performance bonds or bank guarantees - used for larger projects or when required by regulations

2. Advance Payment: Terms for advance payments and their security - included when advance payments are agreed

3. Subcontracting: Rules and procedures for subcontracting - needed when subcontractors will be involved

4. Intellectual Property Rights: Protection of designs and technical documents - important for design-build contracts

5. Environmental Management: Specific environmental requirements - needed for environmentally sensitive projects

6. Local Content Requirements: Provisions for local material and labor usage - required for government projects or when specified by regulations

7. Defects Liability Period: Extended warranty provisions - typically included in larger construction projects

8. Site Conditions: Provisions dealing with unforeseen ground conditions - important for greenfield projects

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings of the construction works

2. Schedule 2 - Project Timeline: Detailed construction schedule with milestones and critical path

3. Schedule 3 - Bill of Quantities: Itemized list of materials, quantities, and rates

4. Schedule 4 - Payment Schedule: Detailed breakdown of payment terms, milestones, and amounts

5. Schedule 5 - Site Plan and Access Details: Site layout, access points, and temporary works areas

6. Schedule 6 - Quality Assurance Plan: Detailed quality control procedures and standards

7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements

8. Schedule 8 - Forms and Certificates: Standard forms for variations, completion certificates, and other project documents

9. Schedule 9 - Insurance Requirements: Detailed insurance specifications and coverage requirements

10. Appendix A - Required Permits and Licenses: List of required regulatory approvals and permits

11. Appendix B - Key Personnel: List of key project personnel and their qualifications

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

alex.den.21@genieai.co

Relevant legal definitions

Agreement
Applicable Laws
As-Built Drawings
Bill of Quantities
Certificate of Completion
Change Order
Commencement Date
Completion Date
Construction Documents
Construction Period
Construction Schedule
Contract Price
Contract Sum
Contractor
Contractor's Equipment
Day
Defects
Defects Liability Period
Delay Damages
Drawings
Employer
Extension of Time
Final Completion Certificate
Force Majeure
Good Industry Practice
Governing Law
Government Authority
IMB (Izin Mendirikan Bangunan)
Insurance
Intellectual Property Rights
Letter of Award
Materials
Milestone
Notice
Owner
Party/Parties
Performance Security
Permits
Project
Project Manager
Project Site
Quality Standards
Retention Money
Schedule of Rates
Site
Specifications
Subcontractor
Substantial Completion
Technical Specifications
Temporary Works
Time for Completion
Variation
Variation Order
Works
Working Day

Clauses

Relevant Industries

Real Estate Development

Commercial Construction

Residential Construction

Industrial Construction

Infrastructure Development

Mining

Oil and Gas

Healthcare

Education

Hospitality

Retail

Manufacturing

Technology (Data Centers)

Government and Public Works

Transportation

Relevant Teams

Legal

Construction

Project Management

Operations

Procurement

Finance

Risk and Compliance

Health Safety and Environment

Quality Assurance

Commercial

Technical Services

Business Development

Facilities Management

Relevant Roles

Chief Executive Officer

Managing Director

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Procurement Manager

Site Manager

Chief Financial Officer

Commercial Director

Technical Director

Risk Manager

Compliance Officer

Operations Manager

Quality Assurance Manager

HSE Manager

Development Manager

Facilities Manager

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Employment And Independent Contractor Agreement

An Indonesian law-compliant agreement establishing employment or independent contractor relationships, defining terms of service and mutual obligations.

How Genie AI reduced drafting time by 75% for a legal firm

Let's create your Construction Agreement Form

Authors

Alex Denne

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