Contract For House (Construction) Template for Indonesia

The Contract For House (Construction) is a vital legal instrument used in Indonesia when engaging a contractor to construct a residential property. This document is essential for projects ranging from single-family homes to luxury residences, providing a legally binding framework that protects both the property owner and the contractor. It encompasses all aspects of the construction process, including detailed specifications, timelines, payment schedules, quality standards, and compliance with Indonesian building regulations. The contract must align with key legislation such as Law No. 2 of 2017 on Construction Services and related regulations, while addressing local permit requirements and building codes. It's particularly important in Indonesia's developing real estate market, where clear contractual terms help prevent disputes and ensure project success. The document includes provisions for common challenges in Indonesian construction projects, such as weather-related delays, material procurement issues, and local administrative requirements.

1. Parties: Details of the Owner/Employer and the Contractor, including their full legal names, addresses, and registration numbers

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

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

4. Scope of Work: Detailed description of the construction work to be performed, including general obligations of the contractor

5. Contract Price and Payment Terms: Total contract value, payment schedule, payment methods, and conditions for payment

6. Project Timeline: Construction schedule, completion date, milestones, and provisions for extensions of time

7. Materials and Workmanship: Quality requirements, material specifications, and workmanship standards

8. Contractor's Obligations: Specific responsibilities including permits, licenses, workforce, equipment, and safety measures

9. Owner's Obligations: Responsibilities of the owner including site access, approvals, and owner-supplied items

10. Supervision and Inspection: Rights and procedures for supervision, inspection, and approval of work

11. Variations: Procedures for handling changes to scope, specifications, or other contract terms

12. Defects Liability: Warranty period, remediation of defects, and maintenance obligations

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

14. Force Majeure: Provisions for unforeseen circumstances and their impact on contract obligations

15. Termination: Grounds and procedures for contract termination by either party

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

17. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters