The Civil Construction Agreement is a fundamental legal document used for construction projects in Indonesia, structured to comply with Indonesian law, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations. This agreement is essential for any construction project where an employer engages a contractor to perform construction works, whether for commercial, residential, industrial, or infrastructure projects. It provides comprehensive coverage of project execution requirements, including technical specifications, payment mechanisms, quality standards, and risk allocation. The document is designed to protect both parties' interests while ensuring compliance with local construction regulations, building codes, and industry standards. It incorporates specific Indonesian legal requirements regarding construction permits, worker safety, environmental protection, and dispute resolution procedures.
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1. Parties: Identification of the contracting parties including the employer and contractor, with their respective details and registration numbers
2. Background: Context of the agreement, project overview, and basis for the contractual relationship
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Price and Payment: Payment terms, schedule, and mechanisms including retention and payment milestones
6. Time for Completion: Project timeline, completion dates, and mechanisms for extensions of time
7. Contractor Obligations: Key responsibilities and obligations of the contractor including quality standards
8. Employer Obligations: Key responsibilities and obligations of the employer including site access and approvals
9. Variations: Procedures for handling changes to the scope of work and their cost implications
10. Quality and Standards: Required quality standards, inspections, and compliance with Indonesian building regulations
11. Health, Safety and Environment: HSE requirements and compliance with Indonesian regulations
12. Insurance and Indemnities: Required insurance coverage and indemnification obligations
13. Defects Liability: Defects liability period and remediation obligations
14. Force Majeure: Force majeure events and their consequences under Indonesian law
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Dispute resolution mechanisms including reference to Indonesian jurisdiction
17. Governing Law: Confirmation of Indonesian law as governing law and relevant jurisdictional matters
1. Performance Security: Requirements for performance bonds or guarantees, used for larger projects
2. Advance Payment: Terms for advance payment and associated security, if applicable
3. Nominated Subcontractors: Provisions for employer-nominated subcontractors, if any
4. Archaeological Findings: Procedures for dealing with archaeological discoveries, relevant for projects in cultural heritage areas
5. Intellectual Property Rights: IP provisions where design or innovative construction methods are involved
6. Environmental Management: Detailed environmental requirements for environmentally sensitive projects
7. Local Content Requirements: Provisions for local content and labor requirements, if applicable to the project
8. Anti-Corruption: Specific anti-corruption provisions for government or public sector projects
9. Step-in Rights: Employer's right to step in and complete works, typically for critical infrastructure projects
1. Schedule 1 - Technical Specifications: Detailed technical specifications and requirements for the works
2. Schedule 2 - Bill of Quantities: Itemized pricing and quantities for the works
3. Schedule 3 - Project Timeline: Detailed project schedule including milestones and completion dates
4. Schedule 4 - Site Plan and Drawings: Construction drawings, site plans, and technical drawings
5. Schedule 5 - Permits and Licenses: List of required permits and responsibilities for obtaining them
6. Schedule 6 - Key Personnel: List of key personnel from both parties and their roles
7. Schedule 7 - Form of Performance Security: Template for performance security if required
8. Schedule 8 - Payment Schedule: Detailed payment milestones and schedule
9. Schedule 9 - Quality Assurance Plan: Detailed quality assurance and control procedures
10. Schedule 10 - HSE Requirements: Detailed health, safety, and environmental requirements and procedures
Relevant legal definitions
Clauses
Relevant Industries
Infrastructure
Commercial Real Estate
Residential Development
Industrial Construction
Energy
Transportation
Healthcare
Education
Hospitality
Manufacturing
Mining
Oil and Gas
Retail
Telecommunications
Utilities
Relevant Teams
Legal
Operations
Project Management
Procurement
Commercial
Finance
Risk Management
Technical
Quality Assurance
Health and Safety
Environmental
Compliance
Relevant Roles
Project Manager
Construction Manager
Legal Counsel
Contract Administrator
Chief Executive Officer
Chief Operating Officer
Project Director
Site Manager
Procurement Manager
Risk Manager
Commercial Director
Technical Director
Finance Director
Quality Assurance Manager
Health and Safety Manager
Environmental Compliance Officer
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