Construction Owner's Representative Contract Template for Indonesia

The Construction Owner's Representative Contract is essential for construction projects in Indonesia where the project owner requires professional representation to oversee their interests. This document becomes particularly important in complex construction projects where the owner may lack technical expertise or capacity for day-to-day project supervision. The agreement, governed by Indonesian law including Law No. 2 of 2017 on Construction Services and related regulations, establishes the scope of authority, responsibilities, and limitations of the representative's role. It includes crucial provisions for project oversight, quality control, compliance with local regulations, reporting mechanisms, and protection of the owner's interests. The document is designed to ensure effective project management while maintaining compliance with Indonesian construction laws and industry standards.

1. Parties: Identification of the Owner and the Owner's Representative, including their complete legal details and authority to enter into the agreement

2. Background: Context of the appointment, including details of the construction project and the need for owner's representation

3. Definitions: Key terms used throughout the agreement, including project-specific and technical terms

4. Appointment and Scope of Services: Formal appointment clause and detailed scope of the representative's services

5. Authority and Limitations: Extent and limitations of the representative's authority to act on behalf of the owner

6. Representatives Duties and Obligations: Specific responsibilities including project monitoring, reporting, and quality control

7. Owner's Obligations: Owner's responsibilities including provision of information, approvals, and access

8. Project Documentation: Requirements for maintaining and managing project documentation

9. Reporting Requirements: Frequency, format, and content of required reports

10. Fees and Payment Terms: Compensation structure, payment schedule, and reimbursable expenses

11. Duration and Timeline: Contract period, key milestones, and extension provisions

12. Professional Standards: Required standards of care and professional conduct

13. Compliance with Laws: Obligation to comply with Indonesian construction and related laws

14. Insurance and Liability: Insurance requirements and liability limitations

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes, including jurisdiction under Indonesian law

17. General Provisions: Standard clauses including notices, amendments, and governing law