House Building Contractor Agreement Template for Indonesia

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Key Requirements PROMPT example:

House Building Contractor Agreement

"I need a House Building Contractor Agreement for a luxury villa construction project in Bali, Indonesia, with specific provisions for sustainable materials and traditional Balinese architectural elements, planned to commence in March 2025 with a 12-month construction period."

Document background
The House Building Contractor Agreement serves as the primary contractual document between property owners and construction contractors in Indonesia for residential building projects. This agreement is essential when engaging a contractor for new house construction, major renovations, or rebuilding projects. It incorporates crucial elements required under Indonesian law, including compliance with Law No. 2 of 2017 on Construction Services and Law No. 28 of 2002 on Buildings. The document outlines detailed specifications, construction timelines, payment schedules, quality standards, and dispute resolution procedures. It's designed to protect both parties' interests while ensuring adherence to local building codes, permit requirements, and safety regulations. The agreement is particularly important in the Indonesian context where construction practices must align with specific regional building regulations (Perda) and environmental requirements.
Suggested Sections

1. Parties: Identification of the property owner (employer) and the building contractor, including their complete legal names, addresses, and registration details

2. Background: Brief context of the agreement, including the owner's intention to build and the contractor's qualifications and licenses

3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terms and contract-specific definitions

4. Scope of Work: Detailed description of the construction work to be performed, including general specifications and references to detailed plans

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

6. Timeline and Completion: Project schedule, completion date, mechanisms for extensions, and definitions of practical completion

7. Contractor's Obligations: Key responsibilities including quality standards, compliance with laws, safety measures, and site management

8. Owner's Obligations: Responsibilities of the property owner including site access, permits, and timely provision of information

9. Materials and Workmanship: Standards for materials, procurement requirements, and quality control processes

10. Variations: Procedures for handling changes to scope, pricing of variations, and approval process

11. Insurance and Indemnity: Required insurance coverage and indemnification obligations of both parties

12. Defects Liability: Defects liability period, remediation process, and warranties

13. Termination: Grounds for termination, termination process, and consequences

14. Force Majeure: Definition of force majeure events and their impact on contractual obligations

15. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures

16. Governing Law: Specification of Indonesian law as governing law and jurisdiction

Optional Sections

1. Site Conditions: Specific provisions relating to known site conditions, soil reports, and risk allocation - include when building on challenging terrain or when specific site issues are known

2. Environmental Protection: Specific environmental management requirements - include when project has significant environmental impacts or is in environmentally sensitive areas

3. Subordinate Contractors: Provisions for managing other contractors on site - include when multiple contractors will be working simultaneously

4. Acceleration: Provisions for accelerating work and associated costs - include for time-critical projects

5. Performance Bond: Requirements for performance security - include for high-value projects or when required by financing

6. Intellectual Property: Protection of design rights and licenses - include when custom designs or innovative construction methods are involved

7. Local Community Relations: Requirements for managing community impact - include in densely populated areas or sensitive locations

Suggested Schedules

1. Schedule 1 - Construction Drawings and Specifications: Detailed architectural and engineering drawings, technical specifications

2. Schedule 2 - Bill of Quantities: Itemized list of materials, quantities, and prices

3. Schedule 3 - Construction Timeline: Detailed project schedule including milestones and critical path

4. Schedule 4 - Payment Schedule: Detailed breakdown of payment installments and milestone payments

5. Schedule 5 - Required Permits and Approvals: List of all required regulatory approvals and responsible parties

6. Schedule 6 - Quality Control Plan: Detailed quality assurance and control procedures

7. Schedule 7 - Site Safety Plan: Safety procedures and protocols for the construction site

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage requirements

9. Appendix A - Forms and Certificates: Standard forms for variations, completion certificates, and other project documents

10. Appendix B - Key Personnel: List of key project personnel and their responsibilities

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

Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate

Architecture

Engineering

Property Development

Building Materials

Construction Management

Residential Development

Relevant Teams

Legal

Construction

Project Management

Procurement

Risk and Compliance

Property Development

Technical Services

Contract Administration

Quality Assurance

Operations

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Property Developer

Architect

Quantity Surveyor

Site Engineer

Building Inspector

Compliance Officer

Construction Director

Procurement Manager

Risk Manager

Property Manager

Technical Director

Industries
Law No. 2 of 2017 on Construction Services (UU Jasa Konstruksi): The primary law governing construction services in Indonesia, covering licensing requirements, contractor obligations, construction standards, and professional requirements for construction service providers
Law No. 28 of 2002 on Buildings (UU Bangunan Gedung): Regulates building requirements, technical standards, safety provisions, and building permits (IMB) necessary for construction projects
Indonesian Civil Code (KUH Perdata): Provides the legal framework for contracts, including formation, validity, obligations, and remedies in case of breach
Law No. 13 of 2003 on Labor (UU Ketenagakerjaan): Governs employment relationships, worker safety, and labor rights that must be considered when employing construction workers
Government Regulation No. 50 of 2012: Regulates Occupational Safety and Health Management Systems (SMK3) implementation in construction projects
Minister of Public Works Regulation No. 05/PRT/M/2014: Contains guidelines for construction safety management systems and worker safety requirements in construction projects
Law No. 32 of 2009 on Environmental Protection and Management: Establishes requirements for environmental impact consideration and management during construction activities
Government Regulation No. 29 of 2000: Regulates construction service implementation, including contractor responsibilities, quality standards, and project execution requirements
Regional Building Regulations (Perda): Local government regulations specific to building construction that vary by region and must be consulted based on the project location
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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