The General Construction Agreement serves as the primary contractual framework for construction projects in Indonesia, establishing the legal relationship between project owners and contractors. This document is essential for any construction project in Indonesia, whether residential, commercial, industrial, or infrastructure development. It ensures compliance with Indonesian Construction Services Law No. 2 of 2017 and related regulations while addressing crucial aspects such as scope of works, payment terms, quality standards, and risk allocation. The agreement is designed to protect both parties' interests while facilitating smooth project execution in accordance with Indonesian legal requirements. It includes provisions for local content requirements, environmental compliance, worker safety standards, and dispute resolution mechanisms specific to the Indonesian construction sector.
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1. Parties: Identification of the contracting parties including full legal names, registration numbers, and addresses
2. Background: Context of the agreement including project overview and parties' intentions
3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Price and Payment Terms: Agreement on price, payment schedule, and payment mechanisms
6. Project Timeline: Construction schedule, milestones, and completion dates
7. Contractor Obligations: Detailed responsibilities and obligations of the contractor
8. Employer Obligations: Detailed responsibilities and obligations of the employer
9. Quality Standards and Inspection: Required quality standards, inspection procedures, and acceptance criteria
10. Materials and Equipment: Requirements for materials and equipment, including procurement and standards
11. Health, Safety and Environment: HSE requirements and compliance with Indonesian regulations
12. Insurance and Securities: Required insurance coverage and performance securities
13. Variations: Procedures for handling changes to scope, price, or timeline
14. Force Majeure: Definition and consequences of force majeure events
15. Default and Termination: Events of default, remedies, and termination procedures
16. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
17. General Provisions: Standard legal provisions including notices, assignments, and amendments
1. Site Conditions: Specific provisions regarding site conditions and site access - include when site has special characteristics or access restrictions
2. Subcontracting: Rules and procedures for subcontracting - include when subcontracting is anticipated
3. Local Content Requirements: Provisions for local content and workforce - include for projects subject to Indonesian local content regulations
4. Intellectual Property: IP rights and obligations - include when design or innovative construction methods are involved
5. Environmental Management: Detailed environmental requirements - include for projects with significant environmental impact
6. Community Relations: Requirements for managing community relations - include for projects in sensitive community areas
7. Testing and Commissioning: Detailed testing requirements - include for complex technical installations
8. Defects Liability Period: Extended warranty provisions - include for projects requiring longer-term guarantees
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed construction schedule and milestone dates
3. Schedule 3 - Bill of Quantities: Itemized list of quantities and prices
4. Schedule 4 - Payment Schedule: Detailed payment terms, milestones, and procedures
5. Schedule 5 - Site Plan and Access Requirements: Site details, access points, and temporary works areas
6. Schedule 6 - Quality Assurance Plan: Detailed quality standards and testing requirements
7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements
8. Schedule 8 - Forms of Securities: Templates for bank guarantees and other securities
9. Appendix A - Required Insurance Coverage: Details of required insurance policies and coverage levels
10. Appendix B - Key Personnel: List of key personnel and their qualifications
11. Appendix C - Permits and Licenses: List of required permits and responsible parties
Relevant legal definitions
Agreement
Applicable Laws
Approval
As-Built Drawings
Base Date
Bill of Quantities
Certificate of Completion
Change Order
Commencement Date
Completion Date
Construction Documents
Construction Equipment
Construction Period
Contract Price
Contractor
Day
Defects
Defects Liability Period
Deliverables
Design Documents
Dispute
Drawings
Employer
Environmental Requirements
Extension of Time
Final Completion
Force Majeure
Good Industry Practice
Governing Law
Health and Safety Plan
Insurance
Intellectual Property Rights
Key Personnel
Local Content Requirements
Materials
Method Statement
Milestone
Notice
Party/Parties
Payment Certificate
Performance Security
Permits
Project
Project Manager
Project Schedule
Quality Assurance Plan
Retention Money
Site
Specifications
Subcontractor
Substantial Completion
Technical Standards
Temporary Works
Variation
Works
Applicable Laws
Approval
As-Built Drawings
Base Date
Bill of Quantities
Certificate of Completion
Change Order
Commencement Date
Completion Date
Construction Documents
Construction Equipment
Construction Period
Contract Price
Contractor
Day
Defects
Defects Liability Period
Deliverables
Design Documents
Dispute
Drawings
Employer
Environmental Requirements
Extension of Time
Final Completion
Force Majeure
Good Industry Practice
Governing Law
Health and Safety Plan
Insurance
Intellectual Property Rights
Key Personnel
Local Content Requirements
Materials
Method Statement
Milestone
Notice
Party/Parties
Payment Certificate
Performance Security
Permits
Project
Project Manager
Project Schedule
Quality Assurance Plan
Retention Money
Site
Specifications
Subcontractor
Substantial Completion
Technical Standards
Temporary Works
Variation
Works
Clauses
Definitions
Interpretation
Scope of Works
Contract Price
Payment Terms
Project Timeline
Contractor Obligations
Employer Obligations
Site Access
Materials and Equipment
Quality Control
Health and Safety
Environmental Compliance
Local Content Requirements
Insurance
Performance Security
Warranties
Variations
Extensions of Time
Force Majeure
Default
Termination
Liability
Indemnification
Intellectual Property
Confidentiality
Assignment
Subcontracting
Dispute Resolution
Governing Law
Notices
Representatives
Documentation
Testing and Commissioning
Completion
Defects Liability
Site Conditions
Permits and Licenses
Labor Requirements
Risk Allocation
Suspension
Claims
Amendment
Severability
Entire Agreement
Waiver
Third Party Rights
Anti-Corruption
Language
Interpretation
Scope of Works
Contract Price
Payment Terms
Project Timeline
Contractor Obligations
Employer Obligations
Site Access
Materials and Equipment
Quality Control
Health and Safety
Environmental Compliance
Local Content Requirements
Insurance
Performance Security
Warranties
Variations
Extensions of Time
Force Majeure
Default
Termination
Liability
Indemnification
Intellectual Property
Confidentiality
Assignment
Subcontracting
Dispute Resolution
Governing Law
Notices
Representatives
Documentation
Testing and Commissioning
Completion
Defects Liability
Site Conditions
Permits and Licenses
Labor Requirements
Risk Allocation
Suspension
Claims
Amendment
Severability
Entire Agreement
Waiver
Third Party Rights
Anti-Corruption
Language
Relevant Industries
Real Estate
Infrastructure
Commercial Construction
Industrial Construction
Residential Development
Energy
Manufacturing
Healthcare
Education
Hospitality
Retail
Transportation
Mining
Oil and Gas
Relevant Teams
Legal
Operations
Commercial
Procurement
Project Management
Construction
Finance
Risk and Compliance
Health and Safety
Quality Assurance
Technical
Business Development
Relevant Roles
Project Manager
Construction Manager
Legal Counsel
Contract Manager
Commercial Director
Chief Executive Officer
Operations Director
Procurement Manager
Site Manager
Quality Assurance Manager
HSE Manager
Risk Manager
Finance Director
Technical Director
Development Manager
Compliance Officer
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