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Construction Service Agreement

Construction Service Agreement Template for Indonesia

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Key Requirements PROMPT example:

Construction Service Agreement

"I need a Construction Service Agreement under Indonesian law for a commercial office building project in Jakarta, with project completion scheduled for March 2025, including specific provisions for green building certification and local content requirements."

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Document background
The Construction Service Agreement is a vital legal instrument used in Indonesia when engaging contractors for construction projects. This document, governed by Indonesian law including Law No. 2 of 2017 on Construction Services and related regulations, is essential for projects ranging from commercial buildings to infrastructure development. It establishes the legal framework for the construction relationship, incorporating local regulatory requirements, industry standards, and business practices specific to Indonesia. The agreement typically includes detailed provisions for scope of work, payment terms, compliance requirements, and risk allocation, while addressing specific Indonesian requirements such as local content rules and permit obligations. It serves as the primary contract document protecting both parties' interests while ensuring compliance with Indonesian construction and business regulations.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details

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 services to be performed

5. Contract Price and Payment Terms: Payment amount, schedule, and methods including milestone payments

6. Timeline and Project Schedule: Project commencement, completion dates, and key milestones

7. Contractor's Obligations: Key responsibilities including quality standards, permits, and compliance requirements

8. Client's Obligations: Client's responsibilities including site access, approvals, and information provision

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

10. Health, Safety and Environment: Safety protocols, environmental compliance, and risk management requirements

11. Quality Control and Inspection: Quality standards, testing procedures, and acceptance criteria

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

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

14. Force Majeure: Events constituting force majeure and consequent procedures

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Process for resolving disputes including mediation and arbitration

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

18. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects

2. Intellectual Property Rights: IP ownership and licenses, relevant for projects involving design elements

3. Defects Liability: Extended warranty provisions beyond standard terms

4. Subcontracting: Terms for engaging and managing subcontractors

5. Site Conditions: Specific provisions regarding site conditions and related risks

6. Environmental Management Plan: Detailed environmental compliance requirements for environmentally sensitive projects

7. Local Content Requirements: Provisions for meeting Indonesian local content requirements

8. Testing and Commissioning: Detailed procedures for complex installations requiring testing

9. Training and Knowledge Transfer: Requirements for training client's personnel, if applicable

10. Liquidated Damages: Specific compensation for delays or performance failures

Suggested Schedules

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

2. Schedule 2 - Project Timeline: Detailed project schedule with milestones and deadlines

3. Schedule 3 - Payment Schedule: Detailed breakdown of payment terms and milestone payments

4. Schedule 4 - Site Information: Site details, access points, and relevant site conditions

5. Schedule 5 - Material Specifications: Detailed specifications for materials and equipment

6. Schedule 6 - Quality Standards: Specific quality requirements and acceptance criteria

7. Schedule 7 - Key Personnel: List of key personnel and their qualifications

8. Schedule 8 - Required Permits: List of required permits and responsibilities for obtaining them

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

10. Appendix A - Technical Drawings: Construction drawings and technical specifications

11. Appendix B - Forms and Certificates: Standard forms for variations, completion certificates, etc.

12. Appendix C - HSE Requirements: Detailed health, safety, and environmental requirements

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Approved Drawings
As-Built Drawings
Bill of Quantities
Certificate of Completion
Change Order
Client
Commencement Date
Completion Date
Construction Documents
Construction Period
Construction Schedule
Contract Price
Contractor
Day
Defects Liability Period
Deliverables
Design Documents
Dispute
Environmental Requirements
Equipment
Force Majeure Event
Good Industry Practice
Governing Law
Health and Safety Requirements
Indonesian Rupiah
Intellectual Property Rights
Key Personnel
Liquidated Damages
Materials
Milestone
Notice
Party/Parties
Payment Schedule
Performance Security
Permits
Project
Project Manager
Project Site
Quality Standards
Regulatory Authorities
Schedule of Rates
Scope of Work
Services
Site Conditions
Specifications
Subcontractor
Substantial Completion
Technical Standards
Time for Completion
Variation
Warranty Period
Work
Working Day
Clauses
Interpretation
Appointment
Scope of Work
Contract Price
Payment Terms
Project Timeline
Contractor Obligations
Client Obligations
Materials and Equipment
Quality Control
Health and Safety
Environmental Compliance
Permits and Licenses
Insurance
Indemnification
Warranties
Performance Security
Variations
Force Majeure
Suspension
Termination
Defects Liability
Intellectual Property
Confidentiality
Assignment and Subcontracting
Dispute Resolution
Governing Law
Notices
Site Access and Conditions
Labor Requirements
Documentation
Testing and Commissioning
Completion and Handover
Liquidated Damages
Limitation of Liability
Risk Allocation
Local Content Requirements
Compliance with Laws
Records and Audits
Representatives
Boilerplate
Relevant Industries

Construction

Real Estate Development

Infrastructure

Manufacturing

Energy

Mining

Commercial Property

Residential Property

Industrial Development

Hospitality

Healthcare

Education

Retail

Transportation

Telecommunications

Relevant Teams

Legal

Operations

Construction

Project Management

Procurement

Health Safety and Environment

Finance

Risk and Compliance

Technical Services

Quality Assurance

Business Development

Facilities Management

Engineering

Environmental

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Legal Counsel

Contract Manager

Chief Executive Officer

Chief Operating Officer

Site Supervisor

Procurement Manager

Quality Control Manager

Health and Safety Officer

Environmental Compliance Officer

Risk Manager

Finance Director

Technical Director

Operations Manager

Business Development Manager

Facilities Manager

Project Engineer

Architect

Quantity Surveyor

Industries
Law No. 2 of 2017 on Construction Services: The primary legislation governing construction services in Indonesia, covering licensing requirements, rights and obligations of construction service providers, and general construction service standards
Indonesian Civil Code (KUHPerdata): Provides the fundamental legal framework for contracts, including formation, validity, and enforcement of contractual agreements
Government Regulation No. 22 of 2020: Implementation regulation for Construction Services Law, detailing certification requirements, construction safety standards, and technical requirements
Law No. 13 of 2003 on Manpower: Governs employment relationships, worker rights, and obligations relevant to construction projects
Law No. 32 of 2009 on Environmental Protection and Management: Establishes environmental protection requirements and impact assessment obligations for construction projects
Government Regulation No. 5 of 2021: Regulates business licensing implementation, including construction permits and related authorizations
Minister of Public Works Regulation No. 07/PRT/M/2019: Standards for construction work prices and general specifications for construction works
Law No. 2 of 2012 on Land Procurement: Regulates land acquisition and procurement processes for construction projects
Government Regulation No. 50 of 2012: Implementation of Occupational Safety and Health Management Systems relevant to construction activities
Law No. 28 of 2002 on Buildings: Establishes requirements for building construction, including technical standards and safety requirements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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