The Agreement With Builder For (Construction) is a comprehensive legal document designed for use in Indonesian construction projects, governed by Law No. 2 of 2017 on Construction Services and related regulations. This agreement is essential when engaging a builder or contractor for construction works, whether for commercial, residential, or infrastructure projects. It provides a structured framework for managing the construction process, ensuring compliance with local building codes and regulations, and protecting the interests of both parties. The document includes detailed provisions for project execution, payment mechanisms, quality control, safety standards, and dispute resolution, while incorporating specific Indonesian requirements for construction permits, professional certifications, and local content requirements. It's particularly important given Indonesia's complex regulatory environment and the need for clear contractual relationships in construction projects.
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1. Parties: Identification of the Owner/Employer and the Builder/Contractor, including their complete legal names, addresses, and registration details
2. Background: Context of the agreement, brief description of the construction project, and the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed, including specifications and standards
5. Contract Price: Total contract value, payment terms, payment schedule, and mechanisms for price adjustments
6. Timeline: Project schedule, completion date, milestones, and provisions for extensions of time
7. Builder's Obligations: Comprehensive list of contractor's responsibilities, including quality standards, safety requirements, and compliance with regulations
8. Owner's Obligations: Owner's responsibilities including site access, permits, approvals, and payment obligations
9. Materials and Equipment: Specifications for materials, procurement requirements, and quality standards
10. Supervision and Inspection: Rights and procedures for work supervision, quality control, and acceptance of completed works
11. Variations: Procedures for handling changes to scope, specifications, or other contract terms
12. Defects Liability: Warranty period, remediation of defects, and maintenance obligations
13. Insurance and Indemnity: Required insurance coverage and indemnification obligations
14. Force Majeure: Events constituting force majeure and their consequences
15. Default and Termination: Events of default, remedies, and termination procedures
16. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration
17. General Provisions: Standard contractual provisions including notices, governing law, and entire agreement
1. Environmental Protection: Specific environmental obligations and compliance requirements, used when project has significant environmental impact
2. Local Content Requirements: Provisions for minimum local content and labor requirements, used when required by specific regulations or project location
3. Performance Security: Requirements for performance bonds or bank guarantees, used for larger projects or when required by owner
4. Intellectual Property: IP rights and obligations, used when design or innovative construction methods are involved
5. Site Conditions: Provisions dealing with unforeseen ground conditions, used for projects with significant groundwork
6. Subcontracting: Rules and limitations on subcontracting, used when subcontractors are expected to be engaged
7. Acceleration: Provisions for accelerating work completion, used in time-critical projects
8. Liquidated Damages: Pre-determined damages for delay or non-performance, used when specific losses can be estimated
9. Advance Payment: Terms for advance payment and its security, used when advance funding is required
1. Schedule 1 - Technical Specifications: Detailed technical requirements, construction methods, and quality standards
2. Schedule 2 - Construction Drawings: Approved architectural, structural, and other technical drawings
3. Schedule 3 - Bill of Quantities: Itemized list of quantities, units, and rates for all work items
4. Schedule 4 - Project Timeline: Detailed project schedule with milestones and critical path
5. Schedule 5 - Payment Schedule: Detailed breakdown of payment installments and milestones
6. Schedule 6 - Site Plan: Site layout, access points, and temporary facilities
7. Schedule 7 - Required Insurance: Details of required insurance coverage and minimum amounts
8. Schedule 8 - Forms and Certificates: Templates for various certificates, notices, and forms
9. Schedule 9 - Key Personnel: List of key personnel from both parties and their roles
10. Schedule 10 - Permits and Approvals: List of required permits and party responsible for obtaining them
Relevant legal definitions
Clauses
Relevant Industries
Commercial Real Estate
Residential Construction
Infrastructure Development
Industrial Construction
Retail Development
Hospitality Construction
Healthcare Facilities
Educational Facilities
Mixed-use Development
Government Buildings
Relevant Teams
Legal
Construction
Project Management
Finance
Procurement
Operations
Risk & Compliance
Technical Services
Commercial
Quality Assurance
Relevant Roles
Project Manager
Construction Manager
Legal Counsel
Contract Administrator
Chief Financial Officer
Procurement Manager
Site Supervisor
Quality Control Manager
Risk Manager
Compliance Officer
Operations Director
Development Manager
Technical Director
Commercial Manager
Finance Director
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