The Standard Builders Contract is designed for use in Indonesian construction projects where a clear and comprehensive agreement is needed between property owners and builders. This document is specifically tailored to comply with Indonesian construction laws, including Law No. 2 of 2017 on Construction Services and related regulations. It provides essential provisions for project execution, payment structures, quality requirements, and dispute resolution mechanisms. The contract is suitable for both commercial and residential construction projects and includes necessary provisions for insurance, warranties, and defects liability as required under Indonesian law. It serves as a foundational document that protects both parties' interests while ensuring compliance with local building codes, environmental regulations, and safety standards.
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1. Parties: Identification and details of the Owner/Employer and the Builder/Contractor
2. Background: Context of the construction project and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Works: Detailed description of construction works to be performed
5. Contract Sum and Payment Terms: Agreement on price, payment schedule, and payment mechanisms
6. Time for Completion: Project timeline, completion date, and milestone deadlines
7. Builder's Obligations: Core responsibilities of the builder including quality standards, materials, and workmanship
8. Owner's Obligations: Responsibilities of the owner including site access and approvals
9. Variations: Procedures for handling changes to scope or specifications
10. Extensions of Time: Circumstances and procedures for time extensions
11. Defects Liability: Defects period and remediation obligations
12. Insurance and Indemnity: Required insurance coverage and indemnification provisions
13. Termination: Grounds and procedures for contract termination
14. Dispute Resolution: Process for resolving disputes between parties
15. Governing Law: Specification of Indonesian law as governing law
1. Performance Security: Requirements for bank guarantees or performance bonds, used for high-value projects
2. Environmental Protection: Specific environmental obligations, required for projects with significant environmental impact
3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters
4. Intellectual Property: IP rights provisions, needed when custom designs or innovative methods are involved
5. Local Content Requirements: Provisions for local material/labor usage, required for government projects
6. Site Conditions: Special provisions for challenging or unusual site conditions
7. Provisional Sums: Allowances for undefined works, used when some aspects cannot be precisely specified
8. Liquidated Damages: Pre-agreed damages for delay, recommended for time-critical projects
1. Schedule 1 - Construction Drawings: Approved architectural and engineering drawings
2. Schedule 2 - Technical Specifications: Detailed technical requirements and standards
3. Schedule 3 - Bill of Quantities: Itemized list of materials and works with quantities
4. Schedule 4 - Construction Program: Detailed project timeline and milestone dates
5. Schedule 5 - Payment Schedule: Breakdown of payment installments and timing
6. Schedule 6 - Site Details: Site information, access points, and restrictions
7. Schedule 7 - Required Permits: List of necessary permits and responsibilities
8. Schedule 8 - Key Personnel: Details of key project staff and their roles
9. Appendix A - Insurance Requirements: Detailed insurance specifications and coverage levels
10. Appendix B - Quality Assurance Plan: Quality control procedures and standards
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Construction
Infrastructure Development
Property Development
Real Estate
Industrial Construction
Public Works
Hospitality Construction
Relevant Teams
Legal
Construction
Project Management
Operations
Procurement
Risk Management
Quality Control
Commercial
Property Development
Contract Administration
Relevant Roles
Construction Manager
Project Director
Contract Administrator
Legal Counsel
Property Developer
Construction Site Supervisor
Procurement Manager
Risk Manager
Quality Control Manager
Development Director
Commercial Manager
Operations Manager
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