Main Contractor And Subcontractor Agreement Template for Indonesia

The Main Contractor And Subcontractor Agreement is a fundamental document in Indonesian construction projects where specialized work packages are delegated to subcontractors. This agreement is essential when a main contractor needs to engage specialized subcontractors for specific aspects of a larger construction project. It complies with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and related regulations. The document addresses critical aspects including scope definition, payment terms, quality standards, safety requirements, and risk allocation. It's particularly important for ensuring clear communication channels, establishing performance standards, and maintaining compliance with local regulatory requirements. The agreement protects both parties' interests while facilitating efficient project execution and is commonly used across various construction sectors from commercial buildings to infrastructure projects.

1. Parties: Identification of the Main Contractor and Subcontractor with complete legal details

2. Background: Context of the agreement, including reference to the main contract and project details

3. Definitions: Defined terms used throughout the agreement

4. Scope of Work: Detailed description of the subcontracted works and deliverables

5. Contract Price and Payment Terms: Payment amount, schedule, and mechanisms including retention provisions

6. Duration and Timeline: Project schedule, completion dates, and milestones

7. Responsibilities of the Main Contractor: Main contractor's obligations including site access, information provision, and coordination

8. Responsibilities of the Subcontractor: Subcontractor's obligations including work execution, reporting, and compliance

9. Materials and Equipment: Provisions regarding procurement, quality, and responsibility for materials

10. Quality Control and Inspection: Quality standards, inspection procedures, and acceptance criteria

11. Health and Safety Requirements: Safety protocols and compliance with Indonesian safety regulations

12. Insurance and Indemnity: Required insurance coverage and indemnification provisions

13. Warranties and Defects Liability: Warranty terms and defect rectification obligations

14. Variations and Changes: Procedures for handling changes to scope or specifications

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Dispute resolution mechanisms including mediation and arbitration

17. Governing Law: Specification of Indonesian law as governing law

18. General Provisions: Standard contract clauses including notices, assignment, and severability