Remodeling Contractor Agreement Template for Indonesia

The Remodeling Contractor Agreement is essential for any property renovation or modification project in Indonesia where professional contracting services are required. This document is designed to comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and related regulations. It is typically used when property owners need to engage professional contractors for significant renovation works, whether residential or commercial. The agreement covers crucial aspects such as scope of work, payment terms, quality standards, safety requirements, and regulatory compliance. It includes specific provisions required under Indonesian law regarding permits, worker safety, and environmental considerations. The Remodeling Contractor Agreement serves as a legally binding document that protects both the property owner and the contractor by clearly defining responsibilities, timelines, and dispute resolution procedures.

1. Parties: Identifies the contracting parties: the property owner (client) and the remodeling contractor, including their complete legal names, addresses, and registration details

2. Background: Contextual information about the remodeling project and the parties' intention to enter into the agreement

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Scope of Work: Detailed description of the remodeling services to be performed, including specific areas to be remodeled and general specifications

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

6. Project Timeline: Establishes start date, completion date, project phases, and milestones

7. Contractor's Obligations: Lists all responsibilities of the contractor, including compliance with local regulations, permits, and construction standards

8. Client's Obligations: Outlines the property owner's responsibilities, including access to the property, timely decisions, and payment obligations

9. Materials and Equipment: Specifies responsibility for sourcing, quality standards, and approval processes for materials and equipment

10. Quality Standards and Inspections: Details the quality requirements and inspection procedures throughout the project

11. Warranties and Defects Liability: Specifies warranty terms, defect rectification period, and procedures for handling defects

12. Insurance and Indemnity: Details required insurance coverage and indemnification obligations of both parties

13. Health and Safety: Outlines safety requirements and compliance with Indonesian workplace safety regulations

14. Variations and Changes: Procedures for requesting, approving, and implementing changes to the scope of work

15. Termination: Conditions and procedures for contract termination by either party

16. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration processes under Indonesian law

17. Governing Law: Specifies Indonesian law as the governing law and relevant jurisdiction

18. General Provisions: Standard contractual provisions including notices, assignment, and entire agreement clause