Construction Contractor Contract Template for Indonesia

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Key Requirements PROMPT example:

Construction Contractor Contract

"I need a Construction Contractor Contract for a large-scale hospital development project in Jakarta, Indonesia, with a contract value of USD 50 million and construction period from March 2025 to December 2025, including specific provisions for medical facility requirements and staged completion."

Document background

The Construction Contractor Contract is a fundamental document used in the Indonesian construction industry to establish legally binding relationships between project owners and contractors. This agreement is essential for any construction project in Indonesia, whether it involves building construction, infrastructure development, or industrial facilities. The contract must comply with Law No. 2 of 2017 on Construction Services and related regulations, addressing crucial aspects such as construction permits, worker safety, environmental protection, and local content requirements. It includes detailed provisions on scope of work, payment mechanisms, project timeline, quality standards, and risk allocation, while incorporating specific Indonesian regulatory requirements. The document is particularly important for ensuring clear delineation of responsibilities, managing project risks, and providing mechanisms for dispute resolution within the Indonesian legal framework.

Suggested Sections

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

2. Background: Context of the construction project, including brief project description and basis for the contract

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

4. Scope of Work: Detailed description of construction works to be performed, including specifications and standards

5. Contract Price and Payment Terms: Amount payable, payment schedule, progress payments, retention money, and payment procedures

6. Project Timeline: Commencement date, completion date, 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 including site access, permits, approvals, and owner-supplied materials

9. Quality Control and Inspection: Quality standards, testing requirements, and inspection procedures

10. Variations: Process for handling changes to scope, pricing of variations, and approval procedures

11. Health, Safety and Environment: Safety requirements, environmental protection measures, and compliance obligations

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

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

14. Force Majeure: Definition of force majeure events and consequences

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

16. Governing Law: Specification of Indonesian law as governing law and jurisdiction

Optional Sections

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

2. Intellectual Property Rights: IP provisions when design elements or proprietary methods are involved

3. Confidentiality: Confidentiality obligations when sensitive information is involved

4. Anti-Corruption: Anti-corruption provisions, particularly important for government projects or international contractors

5. Local Content Requirements: Provisions regarding use of local resources, important for projects subject to Indonesian local content regulations

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

7. Step-In Rights: Owner's right to take over work in specific circumstances, typically for critical infrastructure projects

8. Environmental Management Plan: Detailed environmental requirements for projects with significant environmental impact

Suggested Schedules

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

2. Schedule 2 - Bill of Quantities: Itemized list of work items and their quantities

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

4. Schedule 4 - Payment Schedule: Detailed payment terms, milestones, and procedures

5. Schedule 5 - Site Information: Site details, access points, and existing conditions

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

7. Schedule 7 - Forms of Certificates: Templates for various certificates including completion certificates

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

9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements

10. Schedule 10 - Quality Assurance Plan: Detailed quality control procedures and standards

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

Infrastructure

Real Estate Development

Mining

Oil and Gas

Manufacturing

Hospitality

Healthcare

Education

Retail

Industrial

Transportation

Energy

Telecommunications

Relevant Teams

Legal

Operations

Procurement

Project Management

Commercial

Finance

Risk Management

Health Safety Environment

Quality Control

Technical Services

Compliance

Construction Management

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Procurement Manager

Chief Operating Officer

Operations Director

Technical Director

Risk Manager

Commercial Manager

Site Manager

Quality Control Manager

HSE Manager

Finance Director

Project Engineer

Quantity Surveyor

Compliance Officer

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