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Framework Agreement (Construction)

Framework Agreement (Construction) Template for Indonesia

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Key Requirements PROMPT example:

Framework Agreement (Construction)

"I need a Framework Agreement (Construction) for multiple commercial building projects in Jakarta, with a planned start date of March 2025, that includes provisions for both design and build services and allows for multiple simultaneous work orders with different contractors."

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Document background
This Framework Agreement (Construction) is designed for use in the Indonesian construction sector where parties anticipate an ongoing relationship involving multiple construction projects or works packages. It provides a master agreement structure under which individual work orders can be issued, saving time and reducing negotiation costs for subsequent projects. The agreement is fully compliant with Indonesian construction laws, particularly Law No. 2 of 2017 and its implementing regulations, and includes all necessary provisions for construction services, licensing requirements, and local content rules. This type of agreement is particularly valuable for organizations undertaking regular construction works, as it establishes standardized terms, pricing mechanisms, and operational procedures while maintaining flexibility for project-specific requirements. The Framework Agreement (Construction) includes comprehensive provisions for risk allocation, quality standards, and dispute resolution mechanisms tailored to the Indonesian legal context.
Suggested Sections

1. Parties: Identification of the principal parties entering into the framework agreement

2. Background: Context of the agreement and general intention of the parties

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Framework Structure: Overview of how the framework operates, including work order processes

5. Scope of Services: General description of construction services covered under the framework

6. Work Order Process: Procedures for issuing, accepting and executing specific work orders

7. Duration: Term of the framework agreement and any extension provisions

8. Pricing and Payment: Framework rates, pricing mechanisms, and payment terms

9. Performance Standards: Required quality standards and performance metrics

10. Contractor Obligations: General obligations of the contractor under the framework

11. Principal Obligations: General obligations of the principal under the framework

12. Insurance and Liability: Required insurance coverage and liability provisions

13. Compliance and Permits: Regulatory compliance requirements and responsibility for permits

14. Termination: Grounds and procedures for termination of the framework or work orders

15. Dispute Resolution: Procedures for resolving disputes under Indonesian law

16. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

Optional Sections

1. Security Package: Optional section for performance bonds or other security requirements, used for high-value frameworks

2. Local Content Requirements: Section addressing Indonesian local content requirements, needed when applicable to specific projects

3. Design Obligations: Required when contractor has design responsibilities in addition to construction

4. Environmental Compliance: Detailed environmental requirements, needed for environmentally sensitive projects

5. Technology and IP: Required when framework involves significant technological components or IP rights

6. Force Majeure: Detailed force majeure provisions, recommended for long-term frameworks

7. Step-in Rights: Principal's right to step in and take over works, needed for critical infrastructure projects

Suggested Schedules

1. Schedule 1 - Framework Rates: Detailed pricing structure and rates for different types of works

2. Schedule 2 - Form of Work Order: Template for individual work orders under the framework

3. Schedule 3 - Technical Standards: Specific technical and quality standards applicable to all works

4. Schedule 4 - Key Personnel: List of key personnel and their roles/qualifications

5. Schedule 5 - Required Insurance: Detailed insurance requirements and minimum coverage levels

6. Schedule 6 - HSE Requirements: Health, safety, and environmental requirements

7. Schedule 7 - Performance Metrics: Detailed KPIs and performance measurement criteria

8. Schedule 8 - Required Permits: List of permits and approvals required for typical works

9. Appendix A - Site Access Procedures: Standard procedures for accessing work sites

10. Appendix B - Quality Assurance Plan: Standard quality assurance requirements and procedures

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
Affiliate
Applicable Law
Approved
Background IP
Base Rates
Business Day
Change Order
Commencement Date
Completion
Confidential Information
Construction Equipment
Construction Period
Contract Price
Contractor's Documents
Defects
Defects Liability Period
Deliverables
Design Documents
Dispute
Effective Date
Emergency
Expiry Date
Force Majeure Event
Framework Period
Good Industry Practice
Governing Law
HSE Requirements
Indonesian Technical Standards
Intellectual Property Rights
Key Personnel
Local Content Requirements
Materials
Milestone
Notices
Permits
Personnel
Project IP
Project Site
Quality Standards
Rate Card
Regulatory Authority
Representatives
Schedule of Rates
Security Package
Services
Specifications
Subcontractor
Technical Standards
Term
Time for Completion
Variation
Work Order
Work Order Proposal
Work Order Value
Works
Working Hours
Clauses
Interpretation
Appointment
Framework Structure
Work Order Process
Duration
Contractor Obligations
Principal Obligations
Representatives
Technical Standards
Quality Assurance
Health and Safety
Environmental Protection
Local Content Requirements
Permitting and Approvals
Pricing
Payment
Invoicing
Performance Security
Insurance
Liability and Indemnity
Intellectual Property
Confidentiality
Data Protection
Force Majeure
Suspension
Termination
Step-in Rights
Dispute Resolution
Governing Law
Assignment and Subcontracting
Variations
Records and Audits
Notices
Anti-Corruption
Compliance with Laws
Boilerplate Provisions
Relevant Industries

Infrastructure

Commercial Real Estate

Industrial Construction

Residential Development

Energy & Resources

Transportation

Healthcare

Education

Hospitality

Manufacturing

Telecommunications

Retail

Relevant Teams

Legal

Procurement

Commercial

Operations

Project Management

Risk & Compliance

Finance

Technical

Health Safety & Environment

Quality Assurance

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Commercial Manager

Procurement Manager

Technical Director

Risk Manager

Operations Director

Chief Financial Officer

Project Manager

Site Manager

Quality Assurance Manager

HSE Manager

Cost Controller

Industries
Law No. 2 of 2017: The Construction Services Law (Jasa Konstruksi) - Primary legislation governing construction services in Indonesia, including licensing, obligations of parties, and general construction requirements
Indonesian Civil Code (KUHPerdata): Provides the basic legal framework for contracts and agreements, including provisions on formation, validity, and enforcement of contracts
Presidential Regulation No. 16 of 2018: Regulates government procurement of goods and services, including framework agreements and construction services procurement procedures
Government Regulation No. 22 of 2020: Implementation regulation for Construction Services Law, detailing technical requirements, safety standards, and certification requirements
Law No. 13 of 2003: The Labor Law - Governs employment relationships, including specific provisions affecting construction workers and contractors
Minister of Public Works Regulation No. 07/PRT/M/2019: Standards for Construction Service Prices - Provides guidelines for pricing and cost calculations in construction contracts
Government Regulation No. 29 of 2000: Implementation of Construction Services - Details responsibilities and obligations of construction service providers
Law No. 25 of 2007: Investment Law - Regulates foreign investment in construction projects and related business activities
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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