��������Ƶ

A Letter Of Intent For House (Construction) is a crucial preliminary document used in Indonesia when parties are preparing to enter into a formal construction agreement for residential property. It serves as a stepping stone between initial discussions and the final construction contract, typically used when there is serious intent to proceed but certain details, investigations, or approvals are still pending. The document outlines key terms such as project scope, estimated costs, and timeline while maintaining flexibility for final negotiations. Under Indonesian law, particularly considering the Construction Services Law (Law No. 2 of 2017) and Housing regulations, this document helps establish clear intentions while protecting both parties' interests during the pre-contract phase. While mostly non-binding, it often includes specific binding provisions regarding confidentiality, exclusivity, and negotiation terms.

1. Parties: Identification of the parties involved - the prospective owner/client and the intended construction company/contractor

2. Background: Context of the intended construction project, including brief description of the property and general construction intentions

3. Definitions: Key terms used throughout the letter of intent

4. Project Scope: Brief outline of the intended construction work, including type and size of house

5. Proposed Timeline: Tentative schedule for finalizing the formal construction agreement and anticipated construction period

6. Preliminary Budget: Estimated cost range for the construction project

7. Due Diligence: Overview of the preliminary investigations and assessments to be conducted

8. Exclusivity Period: Period during which the parties agree to negotiate exclusively with each other

9. Good Faith Negotiations: Commitment to negotiate the final agreement in good faith

10. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific clauses

11. Binding Provisions: Identification of which provisions are legally binding (typically confidentiality, exclusivity, and governing law)

12. Termination: Conditions under which the LOI may be terminated

13. Governing Law: Specification that Indonesian law governs the LOI