Document background
The Cost Plus Construction Agreement is particularly suitable for complex construction projects in Indonesia where the final scope or costs cannot be accurately determined at the outset. This type of agreement is commonly used for urgent projects, renovation works, or situations where flexibility in scope is required. It provides a framework for transparent cost accounting, defines reimbursable costs, establishes markup calculations, and includes provisions for cost monitoring and control. The agreement complies with Indonesian construction laws and regulations, including Law No. 2 of 2017 on Construction Services and related implementing regulations. It includes necessary provisions for licensing, insurance, workers' safety, environmental compliance, and local content requirements. The document is structured to protect both parties' interests while maintaining flexibility in project execution.
