The Pre-Construction Agreement is a crucial document used in the initial phases of construction projects in Indonesia, preceding the main construction contract. It is typically employed when a project owner requires professional services for project planning, feasibility assessment, and preliminary design work before committing to full construction. The agreement must comply with Indonesian Law No. 2 of 2017 on Construction Services and related regulations, including Government Regulation No. 22 of 2020. The document outlines the scope of pre-construction services, deliverables, payment terms, and respective parties' obligations. It's particularly important for ensuring proper project preparation and risk assessment while maintaining compliance with local construction laws, building regulations, and technical standards. The agreement serves as a foundation for the subsequent construction phase and helps establish clear expectations and responsibilities between the project owner and service provider.
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1. Parties: Identification of the principal/owner and the pre-construction service provider, including their legal details and authorized representatives
2. Background: Context of the project, brief description of the proposed construction, and the purpose of engaging pre-construction services
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Pre-Construction Services: Detailed description of pre-construction services to be provided, including feasibility studies, preliminary designs, cost estimates, and scheduling
5. Duration: Timeline for the pre-construction phase and any relevant milestones
6. Fees and Payment Terms: Pre-construction service fees, payment schedule, and payment conditions
7. Obligations of the Service Provider: Detailed responsibilities and duties of the pre-construction service provider
8. Obligations of the Principal: Responsibilities of the principal/owner, including provision of information and access
9. Deliverables: Specific outputs and documents to be produced during the pre-construction phase
10. Quality Standards: Required standards and quality levels for the pre-construction services
11. Intellectual Property Rights: Ownership and usage rights of designs, documents, and other materials produced
12. Confidentiality: Protection and handling of confidential information
13. Termination: Conditions and procedures for termination of the agreement
14. Dispute Resolution: Procedures for handling disputes, including jurisdiction and applicable law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Foreign Investment Provisions: Required when the project involves foreign investment, addressing specific requirements under Indonesian Investment Law
2. Government Approval Process: Included when the project requires specific government approvals or permits
3. Environmental Assessment: Required for projects needing environmental impact studies or environmental permits
4. Local Community Engagement: Included when the project requires community consultation or social impact assessment
5. Future Construction Contract: Optional section describing the relationship between pre-construction services and potential future construction contract
6. Force Majeure: Detailed force majeure provisions if required for high-risk or long-duration pre-construction phases
7. Insurance Requirements: Specific insurance provisions beyond standard coverage
8. Anti-Corruption Compliance: Required for projects involving public entities or international organizations
1. Schedule A - Scope of Services: Detailed breakdown of all pre-construction services to be provided
2. Schedule B - Fee Schedule: Detailed breakdown of fees, including hourly rates and reimbursable expenses
3. Schedule C - Project Timeline: Detailed timeline showing all pre-construction activities and milestones
4. Schedule D - Key Personnel: List of key personnel assigned to the project and their roles
5. Schedule E - Required Deliverables: Detailed list and specifications of all required deliverables
6. Schedule F - Technical Requirements: Technical specifications and standards to be followed
7. Appendix 1 - Site Information: Available information about the project site
8. Appendix 2 - Required Permits: List of permits and approvals required for the project
9. Appendix 3 - Form of Reports: Templates and formats for required reports and documentation
Relevant legal definitions
Clauses
Relevant Industries
Commercial Real Estate
Residential Development
Industrial Construction
Infrastructure Development
Healthcare Facilities
Education Facilities
Hospitality
Retail Development
Manufacturing
Energy and Resources
Transportation
Public Works
Mixed-Use Development
Relevant Teams
Legal
Project Management
Construction Management
Engineering
Architecture
Procurement
Risk & Compliance
Finance
Technical Services
Development
Planning & Design
Operations
Relevant Roles
Project Director
Construction Manager
Project Manager
Contract Manager
Legal Counsel
Quantity Surveyor
Chief Engineer
Architect
Cost Estimator
Technical Director
Development Manager
Procurement Manager
Risk Manager
Compliance Officer
Planning Coordinator
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