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General Contractor Work Agreement for Indonesia

General Contractor Work Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions between a project owner and a general contractor for construction services. This document outlines the scope of work, payment terms, timelines, quality standards, and responsibilities of both parties while ensuring compliance with Indonesian construction regulations, including Law No. 2 of 2017 on Construction Services and related implementing regulations. It incorporates essential provisions for worker safety, environmental compliance, and project execution standards specific to the Indonesian construction industry.

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What is a General Contractor Work Agreement?

The General Contractor Work Agreement is a fundamental document used in Indonesian construction projects to establish a legally binding relationship between project owners and general contractors. This agreement is essential when engaging a contractor to undertake substantial construction work, whether for commercial, residential, or infrastructure projects. It must comply with Indonesian law, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations, while addressing practical aspects such as scope definition, payment structures, and project execution requirements. The document includes comprehensive provisions for quality control, safety standards, and risk allocation, making it suitable for both private and public sector projects. It serves as the primary reference point for project execution and dispute resolution throughout the construction phase.

What sections should be included in a General Contractor Work Agreement?

1. Parties: Identification and details of the contracting parties (Owner and Contractor)

2. Background: Context of the agreement and brief description of the project

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

4. Scope of Work: Detailed description of the construction work to be performed

5. Contract Price and Payment Terms: Agreement on pricing, payment schedule, and payment mechanisms

6. Timeline and Project Schedule: Project milestones, completion dates, and schedule requirements

7. Contractor Obligations: Detailed responsibilities and duties of the contractor

8. Owner Obligations: Responsibilities and duties of the project owner

9. Materials and Equipment: Specifications for materials, procurement responsibilities, and equipment requirements

10. Quality Standards and Inspections: Quality requirements, inspection procedures, and acceptance criteria

11. Health, Safety and Environment: HSE requirements and compliance obligations

12. Workers and Subcontractors: Requirements for workforce management and subcontractor engagement

13. Insurance and Indemnification: Insurance requirements and indemnification provisions

14. Warranties: Warranty terms for workmanship and materials

15. Changes and Variations: Procedures for handling changes to scope, price, or timeline

16. Force Majeure: Provisions for unforeseen circumstances and their handling

17. Termination: Conditions and procedures for contract termination

18. Dispute Resolution: Procedures for resolving disputes between parties

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

20. General Provisions: Miscellaneous legal provisions including notices, amendments, and severability

What sections are optional to include in a General Contractor Work Agreement?

1. Performance Bond: Required when project value exceeds certain thresholds or when specifically requested by owner

2. Advance Payment: Included when advance payment is part of the payment structure

3. Intellectual Property Rights: Required when design elements or proprietary methods are involved

4. Confidentiality: Included for projects involving sensitive information or proprietary technology

5. Environmental Impact Management: Required for projects with significant environmental considerations

6. Local Content Requirements: Included when project must meet specific local content obligations

7. Site Security: Required for projects in sensitive or high-risk locations

8. Defect Liability Period: Included when extended warranty period is required beyond standard terms

What schedules should be included in a General Contractor Work Agreement?

1. Schedule A - Scope of Work: Detailed technical specifications and work breakdown structure

2. Schedule B - Bill of Quantities: Itemized list of quantities and prices for all work elements

3. Schedule C - Project Timeline: Detailed project schedule with milestones and critical path

4. Schedule D - Payment Schedule: Detailed payment terms, milestones, and conditions

5. Schedule E - Site Information: Site details, access information, and existing conditions

6. Schedule F - Technical Specifications: Detailed technical requirements and standards

7. Schedule G - HSE Requirements: Detailed health, safety, and environmental requirements

8. Schedule H - Forms and Certificates: Standard forms for variations, completion certificates, etc.

9. Appendix 1 - Insurance Requirements: Detailed insurance coverage requirements and limits

10. Appendix 2 - Key Personnel: List of key personnel and their qualifications

11. Appendix 3 - Equipment Schedule: List of required equipment and specifications

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

Document Type

Project Agreement

Cost

Free to use
Relevant legal definitions




















































Clauses



































Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Industrial Development

Residential Development

Mining

Oil and Gas

Manufacturing

Hospitality

Healthcare

Education

Retail

Government Infrastructure

Transportation

Relevant Teams

Legal

Operations

Project Management

Construction

Commercial

Procurement

Risk & Compliance

Health Safety & Environment

Quality Assurance

Technical

Property Development

Facilities Management

Contract Administration

Engineering

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Commercial Director

Operations Director

Site Manager

Procurement Manager

Chief Operating Officer

Development Director

Technical Director

Construction Director

Quality Assurance Manager

HSE Manager

Risk Manager

Facilities Manager

Property Manager

Project Engineer

Quantity Surveyor

Chief Executive Officer

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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