Contracts For Subcontractors In (Construction) are essential documents in the Indonesian construction industry, used when a main contractor needs to delegate specific portions of a construction project to specialized subcontractors. This agreement type is governed by Indonesian law, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations, which set specific requirements for subcontracting arrangements. The document is crucial for projects requiring specialized expertise, local content fulfillment, or resource optimization, and typically includes detailed provisions for work scope, payment terms, quality standards, and safety requirements. It's particularly important in ensuring compliance with Indonesian construction regulations while protecting both main contractor and subcontractor interests through clear allocation of responsibilities and risks.
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1. Parties: Identification of the main contractor and subcontractor, including their registration details and construction service licenses
2. Background: Context of the main construction project and the need for subcontracting specific works
3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terms
4. Scope of Work: Detailed description of the subcontracted works, including specifications and standards to be met
5. Duration and Timeline: Project timeline, milestones, and completion dates
6. Contract Price and Payment Terms: Pricing structure, payment schedule, retention amounts, and payment procedures
7. Obligations of the Subcontractor: Key responsibilities including work quality, safety compliance, and workforce management
8. Obligations of the Main Contractor: Main contractor's responsibilities including site access, information provision, and coordination
9. Materials and Equipment: Requirements for materials, equipment provision, and quality standards
10. Health and Safety: Safety requirements, compliance with regulations, and safety management procedures
11. Quality Assurance: Quality standards, inspection procedures, and acceptance criteria
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations
13. Variations: Procedures for handling changes to scope or specifications
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions
16. General Provisions: Standard legal provisions including notices, governing law, and entire agreement
1. Performance Security: Required when project value exceeds certain thresholds or when specified by main contract
2. Environmental Management: Required for projects with significant environmental impact or specific environmental requirements
3. Local Content Requirements: Required when project must meet specific local content or workforce requirements
4. Intellectual Property Rights: Required when design or innovative construction methods are involved
5. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects
6. Defects Liability: Extended warranty provisions for specialized works
7. Confidentiality: Required for projects involving proprietary information or sensitive details
8. Step-in Rights: Required for critical project components or when demanded by project owners
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings for the subcontracted works
2. Schedule 2 - Bill of Quantities: Itemized pricing and quantities for the subcontracted works
3. Schedule 3 - Project Timeline: Detailed project schedule including milestones and critical paths
4. Schedule 4 - Payment Schedule: Detailed payment terms, milestone payments, and retention amounts
5. Schedule 5 - Quality Specifications: Detailed quality requirements and testing procedures
6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements
7. Schedule 7 - Required Insurances: List of required insurance policies and coverage amounts
8. Schedule 8 - Forms and Certificates: Template forms for variations, completion certificates, and other standard documents
9. Appendix A - Site Rules: Main contractor's site rules and procedures
10. Appendix B - Equipment Schedule: List of equipment to be provided by each party
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Real Estate Development
Mining
Oil and Gas
Industrial Development
Commercial Development
Residential Development
Energy
Transportation
Relevant Teams
Legal
Procurement
Operations
Construction
Project Management
Health Safety Environment
Quality Assurance
Commercial
Risk Management
Technical Services
Contract Administration
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Procurement Manager
Site Supervisor
Quality Assurance Manager
HSE Manager
Project Engineer
Commercial Manager
Risk Manager
Technical Director
Operations Manager
Chief Operating Officer
Construction Director
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