The General Contractor Agreement With Owner is a foundational document for construction projects in Indonesia, essential for establishing a legally binding relationship between project owners and construction contractors. This agreement is typically used when an owner requires comprehensive construction services for a specific project and needs to engage a qualified general contractor to execute the work. The document must comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations. It covers crucial aspects including scope definition, payment structures, project timelines, quality requirements, safety standards, and risk allocation. The agreement is designed to protect both parties' interests while ensuring smooth project execution within the Indonesian regulatory framework, incorporating local construction practices and legal requirements. It's particularly important for projects requiring formal documentation for permits, financing, or regulatory compliance.
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1. Parties: Identification and details of the Owner and the General Contractor, including their legal status and authority to enter into the agreement
2. Background: Context of the agreement, including brief description of the project and the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed by the Contractor
5. Contract Price and Payment Terms: Total contract value, payment schedule, and payment conditions
6. Project Timeline: Construction schedule, milestones, and completion dates
7. Contractor's Obligations: Detailed responsibilities of the Contractor including quality standards, supervision, and compliance requirements
8. Owner's Obligations: Responsibilities of the Owner including site access, permits, and approvals
9. Materials and Equipment: Requirements for construction materials, equipment, and quality standards
10. Changes and Variations: Procedures for handling changes to scope, pricing, or timeline
11. Quality Control and Inspection: Quality assurance procedures and inspection rights
12. Health and Safety: Safety requirements and compliance with Indonesian health and safety regulations
13. Insurance and Indemnity: Required insurance coverage and indemnification provisions
14. Default and Termination: Events of default, remedies, and termination procedures
15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions
16. Force Majeure: Provisions for handling unforeseen circumstances and their impact on the project
17. Governing Law: Specification of Indonesian law as governing law and jurisdiction
18. Notices: Procedures for formal communications between parties
19. General Provisions: Standard boilerplate clauses including assignment, waiver, and severability
1. Financing Arrangements: Details of project financing and related obligations, used when specific financing arrangements are in place
2. Environmental Compliance: Special environmental requirements and compliance measures, included for projects with significant environmental impact
3. Local Content Requirements: Provisions for meeting Indonesian local content requirements, included when required by regulations or project specifications
4. Performance Bonds: Requirements for performance bonds or other security, included for larger projects or when required by law
5. Intellectual Property Rights: Provisions regarding design rights and other IP, included when design services are part of the scope
6. Subcontracting: Detailed provisions for subcontractor engagement and management, included when subcontracting is anticipated
7. Training and Technology Transfer: Requirements for training local staff or technology transfer, included when required by regulations or owner
8. Warranty Period Extended Terms: Extended warranty provisions beyond statutory requirements, included when negotiated
1. Schedule A - Scope of Work: Detailed technical specifications and drawings for the construction work
2. Schedule B - Bill of Quantities: Itemized list of quantities and prices for all work items
3. Schedule C - Project Timeline: Detailed construction schedule with milestones and critical path
4. Schedule D - Payment Schedule: Detailed breakdown of payment terms, installments, and conditions
5. Schedule E - Site Information: Site details, access points, and existing conditions
6. Schedule F - Required Permits and Approvals: List of required governmental and regulatory approvals
7. Schedule G - Key Personnel: List of key personnel from both parties and their roles
8. Schedule H - Insurance Requirements: Detailed insurance requirements and coverage limits
9. Schedule I - Quality Assurance Plan: Detailed quality control procedures and standards
10. Schedule J - HSE Requirements: Detailed health, safety, and environmental requirements
11. Appendix 1 - Technical Drawings: Complete set of construction drawings and technical specifications
12. Appendix 2 - Forms and Templates: Standard forms for changes, progress reports, and other project documentation
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Industrial Construction
Infrastructure Development
Energy and Power Plants
Healthcare Facilities
Educational Institutions
Retail Development
Hospitality and Tourism
Manufacturing Facilities
Mixed-use Development
Transportation Infrastructure
Mining and Resources
Warehousing and Logistics
Relevant Teams
Legal
Operations
Construction
Project Management
Commercial
Procurement
Risk Management
Finance
Technical Services
Quality Assurance
Health and Safety
Compliance
Contract Administration
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Project Manager
Chief Operating Officer
Development Director
Procurement Manager
Risk Manager
Commercial Director
Technical Director
Chief Financial Officer
Site Manager
Quality Assurance Manager
HSE Manager
Cost Controller
Operations Manager
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