The General Contractor Agreement is a fundamental document used in Indonesian construction projects to establish a legally binding relationship between project owners and construction contractors. This agreement is essential when engaging a general contractor to undertake construction works, whether for commercial, residential, or infrastructure projects. The document must comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and related regulations, while incorporating international best practices. It covers crucial elements such as scope definition, pricing, timelines, quality standards, safety requirements, and risk allocation. The agreement is structured to protect both parties' interests while ensuring project delivery aligns with Indonesian regulatory requirements and industry standards.
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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' qualifications
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed, including specifications and standards
5. Contract Price and Payment Terms: Agreed price, payment schedule, and payment mechanisms
6. Timeline and Project Schedule: Project milestones, completion dates, and timeline requirements
7. Contractor's Obligations: Detailed responsibilities of the contractor, including compliance with local regulations and standards
8. Client's Obligations: Responsibilities of the client, including site access, permits, and approvals
9. Materials and Equipment: Requirements for materials and equipment, including quality standards and procurement procedures
10. Health, Safety and Environmental Requirements: Safety protocols and environmental compliance requirements
11. Quality Control and Inspection: Quality standards, inspection procedures, and acceptance criteria
12. Insurance and Indemnification: Required insurance coverage and indemnification obligations
13. Warranties and Defects Liability: Warranty terms and obligations for defect rectification
14. Variations and Changes: Procedures for handling changes to scope, price, or timeline
15. Force Majeure: Provisions for unforeseen circumstances and their handling
16. Termination: Grounds and procedures for contract termination
17. Dispute Resolution: Procedures for resolving disputes, including reference to Indonesian law
18. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction
19. General Provisions: Standard boilerplate clauses including notices, assignment, and severability
1. Subcontracting: Terms for engaging subcontractors, used when subcontracting is permitted
2. Performance Security: Requirements for performance bonds or guarantees, used for larger projects
3. Intellectual Property Rights: IP provisions, used when design or innovative construction methods are involved
4. Confidentiality: Confidentiality obligations, used when sensitive information is involved
5. Local Content Requirements: Requirements for local material/labor usage, used for projects subject to specific Indonesian regulations
6. Currency and Exchange Rate Provisions: Used for contracts involving international payments or foreign currency
7. Site Conditions: Specific provisions about site conditions, used for complex construction sites
8. Liquidated Damages: Predetermined damages for delays or breaches, used when specific completion dates are critical
1. Schedule 1 - Scope of Work Details: Detailed technical specifications and drawings
2. Schedule 2 - Bill of Quantities: Itemized list of quantities and prices
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones
4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments
5. Schedule 5 - Key Personnel: List of key personnel and their qualifications
6. Schedule 6 - Required Insurance: Detailed insurance requirements and coverage limits
7. Schedule 7 - Forms and Certificates: Standard forms for notices, certificates, and approvals
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Appendix A - Site Plan and Drawings: Technical drawings and site layout plans
10. Appendix B - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning
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