The Engineering Procurement And Construction Agreement is a crucial document for large-scale industrial and infrastructure projects in Indonesia. It is typically used when a project owner requires a single contractor to take full responsibility for the design, procurement, and construction of a facility or installation. This agreement is particularly important in the Indonesian context, where it must comply with specific local regulations including Law No. 2 of 2017 on Construction Services, environmental regulations, and local content requirements. The document provides comprehensive coverage of all project aspects, from initial engineering through to final commissioning, including detailed technical specifications, commercial terms, risk allocation, and performance guarantees. It is structured to protect both parties' interests while ensuring compliance with Indonesian regulatory requirements and international best practices in project execution.
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1. Parties: Identification of the parties entering into the agreement, including Owner/Employer and Contractor
2. Background: Context of the project, including brief description of the facility to be constructed and parties' intentions
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation
4. Scope of Work: Detailed description of engineering, procurement, and construction obligations of the Contractor
5. Contract Price and Payment: Price structure, payment terms, milestones, and invoicing procedures
6. Project Schedule: Timeline, milestones, completion dates, and schedule management requirements
7. Contractor Obligations: Detailed responsibilities including design, procurement, construction, testing, and commissioning
8. Owner Obligations: Owner's responsibilities including site access, permits, and owner-supplied items
9. Quality Assurance and Control: Quality requirements, inspection procedures, and testing protocols
10. Changes and Variations: Procedures for handling changes to scope, price, or schedule
11. Testing and Commissioning: Requirements and procedures for testing, commissioning, and performance guarantees
12. Completion and Handover: Conditions for substantial and final completion, acceptance criteria
13. Defects Liability: Warranty obligations and defect rectification requirements
14. Risk and Insurance: Risk allocation, required insurance coverage, and indemnification
15. Force Majeure: Definition of force majeure events and consequences
16. Suspension and Termination: Rights and procedures for suspension and termination
17. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions
18. Governing Law: Specification of Indonesian law as governing law and interpretation principles
1. Interface Management: Required when multiple contractors are involved, defining interface points and coordination requirements
2. Local Content Requirements: Needed when project must comply with Indonesian local content regulations
3. Export Credit Agency Requirements: Required when project involves international financing or export credit agency support
4. Environmental and Social Requirements: Detailed section needed for projects with significant environmental impact
5. Technology License: Required when project involves licensed technology or processes
6. Training and Knowledge Transfer: Important for projects requiring operational training for owner's personnel
7. Site Security: Detailed section needed for projects in sensitive or high-risk locations
8. Government Approvals: Extended section needed for projects requiring extensive governmental permits
1. Schedule 1 - Scope of Work: Detailed technical specifications and scope description
2. Schedule 2 - Project Schedule: Detailed timeline, milestones, and critical path activities
3. Schedule 3 - Price Schedule: Detailed breakdown of contract price, rates, and payment milestones
4. Schedule 4 - Site Information: Site details, conditions, and access requirements
5. Schedule 5 - Owner Supplied Items: List and specifications of items to be provided by Owner
6. Schedule 6 - Key Personnel: List of key personnel from both parties and their roles
7. Schedule 7 - Forms of Guarantees: Templates for performance bond, warranty bond, and other guarantees
8. Schedule 8 - Quality Requirements: Detailed quality standards and procedures
9. Schedule 9 - HSE Requirements: Health, safety, and environmental requirements
10. Schedule 10 - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning
11. Schedule 11 - Permits and Licenses: List of required permits and responsible parties
12. Schedule 12 - Performance Guarantees: Detailed performance parameters and testing procedures
13. Schedule 13 - Insurance Requirements: Detailed insurance requirements and coverage limits
14. Schedule 14 - Forms of Certificates: Templates for completion certificates and other formal documents
Relevant legal definitions
Clauses
Relevant Industries
Power Generation
Oil and Gas
Petrochemicals
Manufacturing
Infrastructure
Mining
Renewable Energy
Industrial Plants
Transportation
Water Treatment
Telecommunications
Healthcare Facilities
Relevant Teams
Legal
Engineering
Procurement
Construction
Project Management
Commercial
Finance
Risk Management
Quality Assurance
Health Safety Environment
Operations
Technical Services
Document Control
Contract Administration
Relevant Roles
Project Director
Contract Manager
Legal Counsel
Chief Engineer
Procurement Manager
Construction Manager
Project Manager
Risk Manager
Commercial Director
Technical Director
Finance Director
HSE Manager
Quality Assurance Manager
Cost Controller
Document Controller
Claims Manager
Operations Director
Business Development Director
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