Construction Contract Agreement Template for Indonesia

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Key Requirements PROMPT example:

Construction Contract Agreement

"I need a Construction Contract Agreement for building a 5-story commercial office building in Jakarta, Indonesia, with a project value of USD 8 million and construction period from March 2025 to December 2025, including specific provisions for green building certification."

Document background

The Construction Contract Agreement serves as the primary legal instrument for construction projects in Indonesia, establishing the contractual relationship between project owners and contractors. This document is essential for any construction project, whether commercial, residential, or infrastructure-related, and must comply with Indonesian law, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations. It provides comprehensive coverage of project requirements, including technical specifications, payment mechanisms, timeline commitments, quality standards, and risk allocation. The agreement is designed to protect both parties' interests while ensuring compliance with local construction regulations, building codes, environmental requirements, and labor laws. It includes necessary provisions for project execution, monitoring, and completion, while incorporating dispute resolution mechanisms suitable for the Indonesian legal context.

Suggested Sections

1. Parties: Identification and details of the contracting parties (Owner/Employer and Contractor)

2. Background: Context of the agreement, including project overview and parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Contract Price and Payment Terms: Agreement on pricing, payment schedule, and payment conditions

6. Project Timeline: Construction schedule, milestones, and completion dates

7. Contractor's Obligations: Detailed responsibilities of the contractor including quality, safety, and compliance requirements

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

9. Materials and Equipment: Specifications for materials, procurement responsibilities, and quality standards

10. Health, Safety and Environment: Requirements for workplace safety and environmental protection

11. Quality Assurance: Quality control procedures and standards

12. Variations and Changes: Procedures for handling changes to scope, price, or timeline

13. Insurance and Indemnity: Insurance requirements and indemnification obligations

14. Force Majeure: Provisions for handling unforeseen circumstances

15. Default and Termination: Conditions and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes

17. Governing Law: Specification of Indonesian law as governing law

18. General Provisions: Standard contractual provisions including notices, assignments, and amendments

Optional Sections

1. Site Conditions: Detailed provisions regarding site conditions and underground works, used when significant groundwork is involved

2. Subcontracting: Rules and procedures for subcontracting, included when subcontractors are expected to be used

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

4. Intellectual Property: IP rights provisions, included when design or innovative construction methods are involved

5. Local Content Requirements: Provisions for local material and labor usage, included when required by specific Indonesian regulations

6. Defects Liability: Extended warranty provisions, used for complex construction projects

7. Advance Payment: Terms for advance payments and their security, used when advance payments are agreed

8. Environmental Management: Detailed environmental protection measures, included for environmentally sensitive projects

Suggested Schedules

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

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

3. Schedule 3 - Bill of Quantities: Itemized list of quantities and prices

4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments

5. Schedule 5 - Site Plan and Details: Site layout, access points, and relevant site information

6. Schedule 6 - Technical Specifications: Detailed technical requirements and standards

7. Schedule 7 - Forms and Certificates: Template forms for various certificates and notices

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage requirements

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

10. Appendix B - Key Personnel: List of key personnel from both parties with roles and responsibilities

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

Clauses

Relevant Industries

Construction

Real Estate

Infrastructure

Industrial

Commercial

Residential

Healthcare

Education

Hospitality

Manufacturing

Mining

Energy

Retail

Transportation

Relevant Teams

Legal

Operations

Procurement

Project Management

Construction Management

Quality Assurance

Risk Management

Commercial

Finance

Engineering

Health Safety and Environment

Compliance

Technical Services

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

General Counsel

Chief Executive Officer

Operations Director

Procurement Manager

Site Manager

Quality Control Manager

Risk Manager

Commercial Director

Technical Director

Chief Financial Officer

Project Engineer

Quantity Surveyor

Construction Supervisor

Compliance Officer

Health and Safety Manager

Environmental Manager

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Let's create your Construction Contract Agreement

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Alex Denne

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