The Home Improvement Contract Agreement is a crucial legal document used in Indonesia when a property owner engages a contractor to perform renovation, remodeling, or improvement works on their residential property. This agreement is essential for protecting both parties' interests and ensuring compliance with Indonesian construction regulations, including Law No. 2 of 2017 on Construction Services and Law No. 8 of 1999 on Consumer Protection. The document details the scope of work, payment terms, timeline, quality standards, and warranties, while incorporating specific requirements under Indonesian building codes and local permits (IMB). It's particularly important for projects exceeding certain value thresholds or involving structural modifications, as it provides a legal framework for project execution and dispute resolution.
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1. Parties: Identification of the homeowner and contractor, including complete legal names, addresses, and registration details for the contractor
2. Background: Context of the agreement and brief description of the home improvement project
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the home improvement works to be performed
5. Contract Price and Payment Terms: Total contract value, payment schedule, and payment methods
6. Timeline and Completion: Project start date, completion date, and milestones
7. Materials and Equipment: Specifications of materials to be used and responsibility for equipment
8. Contractor's Obligations: Detailed responsibilities of the contractor including permits, warranties, and quality standards
9. Homeowner's Obligations: Responsibilities of the homeowner including access, utilities, and approvals
10. Quality and Standards: Quality standards, building codes, and inspection requirements
11. Warranties: Warranty terms for workmanship and materials
12. Insurance and Liability: Insurance requirements and allocation of risks
13. Termination: Conditions and process for contract termination
14. Dispute Resolution: Process for handling disputes including mediation and jurisdiction
15. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Safety and Environmental Requirements: Specific safety protocols and environmental protection measures, required for projects with significant environmental impact or special safety considerations
2. Subcontractors: Terms regarding the use and management of subcontractors, needed when subcontractors will be involved
3. Variations and Changes: Process for handling changes to scope or specifications, recommended for complex projects
4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters
5. Intellectual Property: Protection of designs and custom features, needed for projects involving unique designs or custom elements
6. Confidentiality: Terms regarding confidential information, relevant for high-value or unique property improvements
7. Financing Provisions: Terms related to external financing or installment payments, needed when project involves bank financing
1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of all works to be performed, including technical specifications
2. Schedule B - Project Timeline: Detailed project schedule with milestones and completion dates
3. Schedule C - Payment Schedule: Detailed breakdown of payment amounts and timing
4. Schedule D - Material Specifications: Detailed list of materials to be used, including brands, grades, and quantities
5. Schedule E - Drawings and Plans: Technical drawings, floor plans, and design specifications
6. Schedule F - Permits and Approvals: List of required permits and copies of approvals
7. Appendix 1 - Contractor's Licenses: Copies of contractor's licenses and certifications
8. Appendix 2 - Insurance Certificates: Copies of required insurance policies
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Home Improvement
Residential Construction
Interior Design
Architecture
Building Materials
Construction Services
Property Development
Relevant Teams
Legal
Construction
Project Management
Contracts Administration
Quality Assurance
Risk Management
Procurement
Compliance
Property Management
Design
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Property Manager
Site Supervisor
Quality Control Inspector
Procurement Manager
Risk Manager
Compliance Officer
Construction Engineer
Interior Designer
Architect
Cost Estimator
Building Inspector
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