Residential Building Contract Agreement Template for Indonesia

The Residential Building Contract Agreement is a crucial legal document used in Indonesia when a property owner engages a contractor to construct a residential building. This agreement is essential for projects ranging from single-family homes to multi-unit residential buildings, providing a legally binding framework that protects both parties' interests while ensuring compliance with Indonesian construction laws and regulations. The document incorporates requirements from multiple sources including the Law No. 2 of 2017 on Construction Services, the Indonesian Civil Code, and local building regulations. It details all aspects of the construction project including scope, timeline, payment terms, quality standards, and dispute resolution procedures. This agreement is particularly important in the Indonesian context where specific local building codes, environmental regulations, and regional variations in construction requirements must be carefully considered and documented.

1. Parties: Identification of the Owner (Client) and the Builder/Contractor, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including brief description of the project and the parties' intentions

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules for interpreting the contract

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

5. Contract Sum and Payment Terms: Total contract price, payment schedule, terms of payment, and handling of variations

6. Time for Completion: Project timeline, completion date, stages of work, and provisions for extensions of time

7. Builder's Obligations: Comprehensive list of the builder's responsibilities, including compliance with laws, permits, and quality standards

8. Owner's Obligations: Owner's responsibilities including site access, approvals, and payment obligations

9. Variations: Process for requesting, approving, and implementing changes to the original scope of work

10. Quality and Defects: Quality standards, inspection rights, defects liability period, and rectification processes

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

12. Work Health and Safety: Safety requirements, responsibilities, and compliance with health and safety regulations

13. Practical Completion: Definition of practical completion, inspection process, and handover requirements

14. Defects Liability Period: Duration and terms of the defects liability period and process for addressing defects

15. Termination: Grounds and process for contract termination by either party

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

17. General Provisions: Standard contract clauses including notices, governing law, and entire agreement