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Contractor Agreement For House (Construction) for Indonesia

Contractor Agreement For House (Construction) Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions between a property owner and a contractor for residential house construction. This document incorporates requirements from Indonesian Construction Services Law (UU Jasa Konstruksi) and related regulations, detailing the scope of work, payment terms, quality standards, timeline, and responsibilities of all parties involved. It includes provisions for compliance with local building codes, environmental regulations, and safety standards specific to Indonesian construction practices, while also addressing dispute resolution mechanisms under Indonesian jurisdiction.

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What is a Contractor Agreement For House (Construction)?

The Contractor Agreement For House (Construction) is a vital legal document used in Indonesia when engaging a contractor for residential construction projects. It is designed to comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and related regulations. This agreement is essential when a property owner plans to build a new house or undertake major residential construction work, providing comprehensive coverage of construction specifications, quality standards, timeline, payment terms, and legal obligations. The document incorporates local building codes, environmental requirements, and safety standards specific to Indonesian construction practices, while also addressing risk allocation, insurance requirements, and dispute resolution procedures. It serves as a crucial tool for protecting both the property owner's and contractor's interests throughout the construction process, ensuring clear communication and legal compliance with Indonesian construction regulations.

What sections should be included in a Contractor Agreement For House (Construction)?

1. Parties: Identification of the Owner and the Contractor, including complete legal names, addresses, and registration details

2. Background: Context of the agreement, including the Owner's intention to build and the Contractor's qualifications

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of the construction work to be performed, including general specifications and standards

5. Contract Documents: List of all documents forming part of the contract, including drawings, specifications, and schedules

6. Contract Price and Payment Terms: Total contract value, payment schedule, method of payment, and conditions for payment

7. Timeline and Completion: Project schedule, completion date, and provisions for extensions of time

8. Contractor's Obligations: Detailed responsibilities of the contractor, including quality standards, safety measures, and compliance requirements

9. Owner's Obligations: Responsibilities of the owner, including site access, permits, and approvals

10. Materials and Workmanship: Standards for materials, quality requirements, and inspection procedures

11. Variations and Changes: Process for handling changes to scope, specifications, or contract price

12. Defects and Warranties: Warranty periods, defects liability, and rectification procedures

13. Insurance and Indemnity: Required insurance coverage and indemnification obligations

14. Termination: Grounds and procedures for contract termination by either party

15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

16. Governing Law: Specification of Indonesian law as governing law and jurisdiction

17. General Provisions: Standard contractual provisions including notices, assignment, and entire agreement

What sections are optional to include in a Contractor Agreement For House (Construction)?

1. Environmental Protection: Additional environmental requirements and compliance measures, used for projects with significant environmental impact

2. Site Security: Specific security requirements for the construction site, used in high-security areas or valuable properties

3. Temporary Works: Provisions for temporary structures and facilities, used when significant temporary works are required

4. Subcontracting: Rules and conditions for subcontracting, used when subcontractors are likely to be engaged

5. Force Majeure: Detailed provisions for handling unforeseen circumstances, particularly relevant in areas prone to natural disasters

6. Local Community Relations: Requirements for managing relationships with local communities, used in sensitive residential areas

7. Quality Assurance Program: Detailed quality control requirements, used for high-end or complex construction projects

What schedules should be included in a Contractor Agreement For House (Construction)?

1. Schedule 1: Detailed Scope of Work: Comprehensive description of all construction work, including specifications and methodologies

2. Schedule 2: Construction Drawings: Approved architectural and engineering drawings for the project

3. Schedule 3: Bill of Quantities: Detailed breakdown of quantities and prices for all work items

4. Schedule 4: Payment Schedule: Detailed payment terms, milestones, and payment amounts

5. Schedule 5: Construction Timeline: Detailed project schedule with milestones and completion dates

6. Schedule 6: Material Specifications: Detailed specifications for all materials to be used in construction

7. Schedule 7: Quality Standards and Testing Requirements: Specific quality standards and testing procedures

8. Schedule 8: Safety Requirements: Detailed safety procedures and requirements

9. Appendix A: Required Permits and Licenses: List of all required regulatory approvals and permits

10. Appendix B: Insurance Requirements: Detailed insurance requirements and coverage limits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions









































Clauses



































Relevant Industries

Construction

Real Estate

Architecture

Engineering

Building Materials

Property Development

Insurance

Financial Services

Relevant Teams

Legal

Construction

Project Management

Property Development

Risk Management

Compliance

Procurement

Quality Assurance

Health and Safety

Finance

Operations

Relevant Roles

Construction Manager

Project Manager

Legal Counsel

Contract Administrator

Property Developer

Architect

Civil Engineer

Quantity Surveyor

Risk Manager

Compliance Officer

Procurement Manager

Site Supervisor

Quality Control Manager

Safety Officer

Finance Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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