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Renovation Agreement

Renovation Agreement Template for Indonesia

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Key Requirements PROMPT example:

Renovation Agreement

"I need a Renovation Agreement for my three-story commercial building in Jakarta, involving structural modifications and facade upgrades, with work to commence in March 2025 and including provisions for multiple subcontractors and phased completion."

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Document background
The Renovation Agreement is essential for any property modification or improvement project in Indonesia, serving as a crucial legal document that protects the interests of both property owners and contractors. This agreement is commonly used when undertaking residential, commercial, or industrial renovation projects that require professional contracting services. The document must comply with Indonesian Civil Code (KUHPerdata) requirements and construction-specific regulations, including Law No. 2 of 2017 on Construction Services. It typically includes detailed specifications of work, pricing structures, timelines, quality standards, and warranty provisions. The agreement becomes particularly important for projects requiring building permits (IMB) and those involving substantial structural modifications, ensuring all parties understand their rights, obligations, and the scope of work to be performed.
Suggested Sections

1. Parties: Identifies and provides full details of the property owner and the renovation contractor

2. Background: Outlines the context of the renovation project and the parties' intention to enter into the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Work: Detailed description of the renovation work to be performed

5. Contract Price and Payment Terms: Specifies the total cost, payment schedule, and payment methods

6. Timeline and Completion: Sets out the project schedule, milestones, and completion criteria

7. Contractor's Obligations: Lists all responsibilities and duties of the contractor

8. Owner's Obligations: Specifies the property owner's responsibilities and duties

9. Materials and Equipment: Details the procurement, quality, and handling of construction materials

10. Permits and Compliance: Addresses building permits, approvals, and regulatory compliance requirements

11. Warranties and Defects: Specifies warranty terms and defect rectification procedures

12. Insurance and Indemnity: Outlines insurance requirements and indemnification obligations

13. Termination: States conditions and procedures for contract termination

14. Dispute Resolution: Establishes procedures for handling disputes

15. General Provisions: Contains standard legal provisions including notices, governing law, and amendments

Optional Sections

1. Health and Safety: Detailed health and safety requirements, recommended for large-scale renovations

2. Environmental Protection: Environmental safeguards and waste management, needed for projects with significant environmental impact

3. Subcontractors: Rules regarding subcontractor engagement and management, included when subcontracting is permitted

4. Intellectual Property: Protection of designs and creative elements, needed for projects involving unique or custom designs

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters

6. Site Access and Security: Specific arrangements for access to and security of the renovation site, important for occupied buildings

7. Utilities and Facilities: Arrangements for utilities during renovation, relevant for major renovations

8. Quality Control: Specific quality control procedures and standards, recommended for high-end renovations

Suggested Schedules

1. Schedule A - Scope of Work Details: Detailed specifications, drawings, and technical requirements of the renovation work

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

3. Schedule C - Project Timeline: Detailed project schedule with milestones and deadlines

4. Schedule D - Payment Schedule: Detailed breakdown of payment installments and timing

5. Schedule E - Material Specifications: Detailed specifications for all materials to be used

6. Schedule F - Warranties: Specific warranty terms and conditions for different aspects of the work

7. Appendix 1 - Site Plans and Drawings: Technical drawings and plans for the renovation

8. Appendix 2 - Permits and Licenses: Copies of relevant permits, licenses, and approvals

9. Appendix 3 - Insurance Certificates: Copies of required insurance policies and certificates

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Clauses
Interpretation
Scope of Work
Contract Price
Payment Terms
Timeline and Completion
Materials and Equipment
Quality Standards
Warranties
Contractor Obligations
Owner Obligations
Permits and Approvals
Site Access
Health and Safety
Insurance
Indemnification
Variation Orders
Subcontracting
Force Majeure
Termination
Default and Remedies
Dispute Resolution
Governing Law
Notices
Assignment
Confidentiality
Entire Agreement
Severability
Amendment
Waiver
Compliance with Laws
Environmental Protection
Labor Requirements
Risk Allocation
Representations and Warranties
Liability Limitations
Relevant Industries

Real Estate

Construction

Architecture & Design

Property Development

Facilities Management

Home Improvement

Commercial Property

Retail

Hospitality

Healthcare

Relevant Teams

Legal

Operations

Facilities Management

Project Management

Procurement

Construction

Property Management

Contract Administration

Quality Assurance

Real Estate

Risk Management

Technical Services

Relevant Roles

Property Manager

Facility Manager

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Architect

Interior Designer

Procurement Manager

Cost Controller

Site Supervisor

Quality Control Inspector

Building Engineer

Operations Manager

Real Estate Developer

Maintenance Manager

Industries
Indonesian Civil Code (KUHPerdata): Provides the fundamental legal framework for contracts, including formation, obligations, and remedies for breach of contract
Law No. 2 of 2017 on Construction Services: Regulates construction services, including renovation works, covering aspects such as construction requirements, standards, and professional qualifications
Law No. 13 of 2003 on Manpower: Governs labor relationships and worker rights, relevant for managing construction workers involved in renovation projects
Government Regulation No. 36 of 2005 on Building Regulations: Specifies building standards, safety requirements, and permit procedures for construction and renovation works
Law No. 8 of 1999 on Consumer Protection: Ensures protection of consumer rights and interests in service agreements, including renovation contracts
Law No. 32 of 2009 on Environmental Protection and Management: Establishes environmental standards and requirements that may affect renovation activities
Regional Building Permits (IMB) Regulations: Local government regulations regarding building permits and renovation approvals specific to the project location
Minister of Public Works Regulation No. 24/PRT/M/2007: Guidelines for technical planning and construction supervision, ensuring quality and safety standards in building works
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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