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Construction Lease Agreement
"I need a Construction Lease Agreement for a retail development project in Jakarta, Indonesia, where my company will lease a 3-story commercial building for 15 years and construct additional retail spaces and a rooftop restaurant, with construction to begin in March 2025."
1. Parties: Identification of the lessor and lessee, including their legal status and authority to enter into the agreement
2. Background: Context of the agreement, including property details and intended construction purpose
3. Definitions: Definitions of key terms used throughout the agreement
4. Lease Terms: Duration, rent amount, payment terms, and renewal options
5. Construction Rights and Obligations: Scope of permitted construction works, responsibilities of each party
6. Permits and Approvals: Requirements for obtaining necessary construction permits and approvals
7. Construction Timeline: Construction schedule, completion dates, and milestones
8. Property Access and Use: Rights of access during construction and subsequent use
9. Construction Standards: Required building standards and quality requirements
10. Insurance and Liability: Insurance requirements and allocation of risks
11. Maintenance and Repairs: Responsibilities for maintenance during and after construction
12. Compliance with Laws: Obligations to comply with relevant Indonesian laws and regulations
13. Default and Remedies: Events of default and available remedies
14. Termination: Grounds and procedures for termination
15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Environmental Requirements: Required when the construction has significant environmental impact or requires environmental permits
2. Foreign Investment Provisions: Required when either party is a foreign entity, addressing investment laws and restrictions
3. Special Use Requirements: Required when the construction is for specific purposes (e.g., industrial, commercial) with special regulatory requirements
4. Financing Arrangements: Required when construction involves external financing or specific payment structures
5. Force Majeure: Detailed force majeure provisions when required by specific circumstances or location
6. Security Arrangements: Required when additional security or guarantees are needed
7. Subletting and Assignment: Required when parties want to allow or restrict subletting rights
8. Green Building Requirements: Required when the construction must meet specific environmental or sustainability standards
1. Schedule 1 - Property Details: Detailed description of the property including land certificates and boundaries
2. Schedule 2 - Construction Plans: Architectural and engineering drawings approved for construction
3. Schedule 3 - Technical Specifications: Detailed technical requirements and building specifications
4. Schedule 4 - Construction Timeline: Detailed construction schedule with milestones and completion dates
5. Schedule 5 - Rent Schedule: Detailed breakdown of rent payments and escalation terms
6. Schedule 6 - Required Permits: List of required permits and approvals with responsible parties
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage levels
8. Appendix A - Form of Bank Guarantee: Template for any required bank guarantees or security deposits
9. Appendix B - Environmental Impact Assessment: Environmental impact analysis and mitigation measures
10. Appendix C - Building Permits: Copies of obtained building permits and approvals
Authors
Approvals
Architect
Building
Building Laws
Building Permit
Certificate of Completion
Commencement Date
Construction Period
Construction Plans
Construction Schedule
Construction Site
Construction Works
Contractor
Default Event
Development Approvals
Environmental Laws
Environmental Requirements
Expiry Date
Force Majeure Event
IMB (Izin Mendirikan Bangunan)
Initial Term
Insurance Requirements
Land
Lease Period
Lease Premises
Lessor's Works
Lessee's Works
Local Authority
Maintenance Requirements
Material Breach
Occupation Date
Permitted Use
Plans and Specifications
Practical Completion
Premises
Project Manager
Property
Rent
Rent Commencement Date
Security Deposit
Services
Substantial Completion
Technical Specifications
Term
Utilities
Variation
Works
Construction Rights
Property Access
Rent and Payment
Construction Timeline
Building Permits
Regulatory Compliance
Insurance
Environmental Compliance
Health and Safety
Liability and Indemnification
Force Majeure
Default and Remedies
Termination
Assignment and Subletting
Confidentiality
Dispute Resolution
Governing Law
Notices
Utilities and Services
Maintenance and Repairs
Alterations and Improvements
Security Deposit
Quality Standards
Completion and Handover
Warranties
Site Access
Labor Requirements
Materials and Equipment
Inspection Rights
Work Suspension
Performance Guarantees
Title and Risk
Intellectual Property
Representations and Warranties
Entire Agreement
Real Estate
Construction
Property Development
Infrastructure
Commercial Property
Industrial Development
Retail Development
Hospitality
Manufacturing
Logistics
Legal
Real Estate
Construction
Property Development
Operations
Facilities Management
Risk & Compliance
Finance
Project Management
Commercial
Procurement
Design & Architecture
Real Estate Director
Construction Manager
Property Development Manager
Legal Counsel
Facilities Manager
Project Manager
Commercial Director
Operations Director
Risk Manager
Compliance Officer
Chief Financial Officer
Development Director
Asset Manager
Property Manager
Construction Site Supervisor
Architect
Contract Administrator
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