The Basic Building Contract serves as a fundamental legal instrument for construction projects in Indonesia, providing a comprehensive framework for construction relationships between employers and contractors. This document is particularly suitable for straightforward construction projects where a clear scope of work can be defined and standard construction practices apply. It incorporates key requirements from Indonesian construction law, including Law No. 2 of 2017 on Construction Services and related regulations, while addressing essential aspects such as payment terms, quality standards, and compliance with local building codes. The Basic Building Contract is designed to be adaptable to various construction projects while maintaining consistency with Indonesian legal requirements and industry standards. It includes provisions for project timeline, materials specifications, safety requirements, and dispute resolution mechanisms, making it a crucial tool for managing construction relationships and project execution.
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1. Parties: Identification and details of the employer and contractor
2. Background: Context of the agreement and brief project overview
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Work: Detailed description of the construction work to be performed
5. Contract Price and Payment Terms: Agreed price, payment schedule, and payment conditions
6. Project Timeline: Construction schedule, milestones, and completion dates
7. Contractor's Obligations: Primary responsibilities and duties of the contractor
8. Employer's Obligations: Primary responsibilities and duties of the employer
9. Materials and Workmanship: Quality standards and specifications for materials and work
10. Health and Safety: Safety requirements and procedures on site
11. Insurance and Indemnity: Required insurance coverage and indemnification provisions
12. Variations: Procedures for handling changes to the scope of work
13. Defects Liability: Contractor's obligations regarding defects and repairs
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Procedures for resolving disputes between parties
16. Governing Law: Specification of Indonesian law as governing law
1. Performance Bond: Required when project value exceeds certain thresholds or when specifically requested by employer
2. Advance Payment: Include when advance payment is agreed upon
3. Subcontracting: Include when subcontracting is permitted
4. Environmental Protection: Required for projects with significant environmental impact
5. Force Majeure: Detailed force majeure provisions for high-risk areas or longer projects
6. Site Conditions: Include for projects where ground conditions may be uncertain
7. Testing and Commissioning: Required for projects involving mechanical or electrical installations
8. Intellectual Property Rights: Include when design services are part of the contract
1. Schedule 1 - Project Specifications: Detailed technical specifications of the building works
2. Schedule 2 - Site Plan and Drawings: Architectural and engineering drawings
3. Schedule 3 - Bill of Quantities: Itemized list of materials and works with quantities
4. Schedule 4 - Payment Schedule: Detailed breakdown of payment milestones and amounts
5. Schedule 5 - Construction Program: Detailed timeline of construction activities
6. Schedule 6 - Required Permits and Approvals: List of necessary permits and responsibilities for obtaining them
7. Schedule 7 - Quality Assurance Plan: Quality control procedures and standards
8. Appendix A - Insurance Requirements: Detailed insurance specifications and coverage amounts
9. Appendix B - Form of Performance Bond: Standard form for performance bond if required
10. Appendix C - Health and Safety Requirements: Detailed safety procedures and requirements
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Property Development
Civil Engineering
Architecture
Building Materials
Urban Development
Industrial Construction
Commercial Property
Relevant Teams
Legal
Construction
Operations
Procurement
Finance
Risk Management
Compliance
Technical Services
Project Management
Commercial
Health and Safety
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Quantity Surveyor
Site Engineer
Architect
Procurement Manager
Risk Manager
Operations Director
Commercial Manager
Chief Financial Officer
Technical Director
Compliance Officer
Health and Safety Manager
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