The Works Contract serves as the primary legal instrument for construction and infrastructure projects in Indonesia, establishing the contractual relationship between the project owner and contractor. This document type is essential for projects requiring formal documentation of construction works, whether for private developments, public infrastructure, or industrial facilities. The Works Contract must comply with Indonesian law, particularly the Civil Code and Construction Services Law No. 2 of 2017, while incorporating specific requirements for permits, environmental compliance, and local content as mandated by regional regulations. It typically includes detailed specifications, payment mechanisms, timeline commitments, and risk allocation between parties, making it suitable for both domestic and international construction projects within Indonesian jurisdiction.
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1. Parties: Identification of contracting parties, including legal status and registration details as per Indonesian law
2. Background: Context of the works contract, project overview, and basis of the agreement
3. Definitions and Interpretation: Key terms used in the contract and rules of interpretation
4. Scope of Works: Detailed description of works to be performed, including specifications and standards
5. Contract Price and Payment: Payment terms, methods, currencies, and payment schedule
6. Commencement and Completion: Project timeline, milestone dates, and completion requirements
7. Contractor Obligations: Key responsibilities including workmanship, materials, and compliance with laws
8. Employer Obligations: Client responsibilities including site access, permits, and approvals
9. Quality and Inspection: Quality standards, testing requirements, and inspection procedures
10. Variations: Process for handling changes to scope, price, or timeline
11. Health, Safety and Environment: HSE requirements and compliance with Indonesian environmental regulations
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations
13. Force Majeure: Definition and consequences of force majeure events
14. Suspension and Termination: Rights and procedures for suspension and termination
15. Dispute Resolution: Dispute resolution mechanisms including governing law and jurisdiction
16. General Provisions: Standard clauses including notices, assignment, and entire agreement
1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects
2. Intellectual Property: IP rights and licenses, relevant for projects involving design or technology
3. Local Content Requirements: Local content obligations, required for government or regulated projects
4. Defects Liability: Extended warranty period and remediation obligations, for complex construction works
5. Step-in Rights: Employer's right to take over works, relevant for critical infrastructure projects
6. Anti-Corruption: Specific anti-corruption provisions, important for government or regulated projects
7. Environmental Management: Detailed environmental obligations, required for environmentally sensitive projects
8. Community Relations: Community engagement requirements, important for projects in sensitive areas
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed program of works and milestone dates
3. Schedule 3 - Price Schedule: Detailed breakdown of contract price and payment milestones
4. Schedule 4 - Site Information: Site details, access points, and existing conditions
5. Schedule 5 - Key Personnel: List of key personnel and their qualifications
6. Schedule 6 - Forms and Procedures: Standard forms for variations, completion certificates, etc.
7. Schedule 7 - Insurance Requirements: Detailed insurance specifications and minimum coverage
8. Schedule 8 - Permits and Approvals: List of required permits and responsible parties
9. Appendix A - HSE Requirements: Detailed health, safety, and environmental requirements
10. Appendix B - Quality Assurance Plan: Detailed quality management procedures and requirements
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Mining
Oil and Gas
Manufacturing
Real Estate Development
Energy
Transportation
Industrial Development
Public Works
Telecommunications
Utilities
Relevant Teams
Legal
Operations
Procurement
Construction
Commercial
Finance
Risk Management
Health Safety Environment
Quality Assurance
Project Management
Engineering
Contracts Administration
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Procurement Manager
Chief Operations Officer
Site Manager
Commercial Director
Risk Manager
Technical Director
Quality Assurance Manager
HSE Manager
Finance Director
Engineering Manager
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