The Construction Contractor Contract is a fundamental document used in the Indonesian construction industry to establish legally binding relationships between project owners and contractors. This agreement is essential for any construction project in Indonesia, whether it involves building construction, infrastructure development, or industrial facilities. The contract must comply with Law No. 2 of 2017 on Construction Services and related regulations, addressing crucial aspects such as construction permits, worker safety, environmental protection, and local content requirements. It includes detailed provisions on scope of work, payment mechanisms, project timeline, quality standards, and risk allocation, while incorporating specific Indonesian regulatory requirements. The document is particularly important for ensuring clear delineation of responsibilities, managing project risks, and providing mechanisms for dispute resolution within the Indonesian legal framework.
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1. Parties: Identification of the contracting parties (Owner/Employer and Contractor), including their legal details and representatives
2. Background: Context of the construction project, including brief project description and basis for the contract
3. Definitions and Interpretation: Definitions of key terms and rules for contract interpretation
4. Scope of Work: Detailed description of construction works to be performed, including specifications and standards
5. Contract Price and Payment Terms: Amount payable, payment schedule, progress payments, retention money, and payment procedures
6. Project Timeline: Commencement date, completion date, milestones, and provisions for extensions of time
7. Contractor's Obligations: Key responsibilities including workmanship, materials, compliance with laws, and safety requirements
8. Owner's Obligations: Responsibilities including site access, permits, approvals, and owner-supplied materials
9. Quality Control and Inspection: Quality standards, testing requirements, and inspection procedures
10. Variations: Process for handling changes to scope, pricing of variations, and approval procedures
11. Health, Safety and Environment: Safety requirements, environmental protection measures, and compliance obligations
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations
13. Default and Termination: Events of default, remedies, and termination procedures
14. Force Majeure: Definition of force majeure events and consequences
15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions
16. Governing Law: Specification of Indonesian law as governing law and jurisdiction
1. Performance Security: Requirements for bank guarantees or performance bonds, used for larger projects or when required by owner
2. Intellectual Property Rights: IP provisions when design elements or proprietary methods are involved
3. Confidentiality: Confidentiality obligations when sensitive information is involved
4. Anti-Corruption: Anti-corruption provisions, particularly important for government projects or international contractors
5. Local Content Requirements: Provisions regarding use of local resources, important for projects subject to Indonesian local content regulations
6. Defects Liability: Extended warranty provisions, typically used for larger construction projects
7. Step-In Rights: Owner's right to take over work in specific circumstances, typically for critical infrastructure projects
8. Environmental Management Plan: Detailed environmental requirements for projects with significant environmental impact
1. Schedule 1 - Scope of Work: Detailed technical specifications and drawings
2. Schedule 2 - Bill of Quantities: Itemized list of work items and their quantities
3. Schedule 3 - Project Timeline: Detailed project schedule including milestones
4. Schedule 4 - Payment Schedule: Detailed payment terms, milestones, and procedures
5. Schedule 5 - Site Information: Site details, access points, and existing conditions
6. Schedule 6 - Key Personnel: List of key personnel from both parties and their roles
7. Schedule 7 - Forms of Certificates: Templates for various certificates including completion certificates
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage requirements
9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements
10. Schedule 10 - Quality Assurance Plan: Detailed quality control procedures and standards
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Real Estate Development
Mining
Oil and Gas
Manufacturing
Hospitality
Healthcare
Education
Retail
Industrial
Transportation
Energy
Telecommunications
Relevant Teams
Legal
Operations
Procurement
Project Management
Commercial
Finance
Risk Management
Health Safety Environment
Quality Control
Technical Services
Compliance
Construction Management
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Procurement Manager
Chief Operating Officer
Operations Director
Technical Director
Risk Manager
Commercial Manager
Site Manager
Quality Control Manager
HSE Manager
Finance Director
Project Engineer
Quantity Surveyor
Compliance Officer
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