Construction Company Contracts in Indonesia are fundamental legal instruments used to establish and govern relationships between construction companies and project owners/developers. These contracts must comply with Law No. 2 of 2017 on Construction Services and related regulations, including Government Regulation No. 22 of 2020. The document is essential for any construction project in Indonesia, whether commercial, residential, or infrastructure development. It outlines comprehensive terms covering project scope, technical specifications, payment structures, regulatory compliance, and risk allocation. The contract incorporates mandatory provisions required by Indonesian law, including worker safety requirements, environmental protection measures, and local content requirements where applicable. It serves as the primary reference document for project execution, dispute resolution, and ensuring compliance with Indonesian construction industry standards and practices.
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1. Parties: Identification of the contracting parties including full legal names, registration numbers, and authorized representatives
2. Background: Context of the construction project, including project overview and parties' intentions
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Work: Detailed description of construction works to be performed
5. Contract Price and Payment Terms: Payment amount, schedule, method, and conditions for payment
6. Project Timeline: Construction schedule, milestones, and completion dates
7. Contractor's Obligations: Detailed responsibilities including quality standards, safety requirements, and regulatory compliance
8. Client's Obligations: Client's responsibilities including site access, permits, and approvals
9. Materials and Equipment: Specifications for materials, procurement requirements, and quality standards
10. Health, Safety and Environment: Safety protocols, environmental protection measures, and compliance requirements
11. Quality Assurance: Quality control procedures, inspections, and acceptance criteria
12. Insurance and Indemnities: Required insurance coverage and indemnification provisions
13. Force Majeure: Events beyond parties' control and their consequences
14. Default and Termination: Events of default, remedies, and termination procedures
15. Dispute Resolution: Procedures for resolving disputes including mediation and arbitration
16. Governing Law: Application of Indonesian law and jurisdiction
1. Performance Security: Required for larger projects or when client requires bank guarantees or performance bonds
2. Subcontracting: Include when subcontractors will be engaged, specifying conditions and approval requirements
3. Intellectual Property Rights: Include when design services or proprietary methods are involved
4. Site Conditions: Include for projects where ground conditions or existing structures may impact construction
5. Variations: Include for complex projects where scope changes are likely
6. Defects Liability: Include when extended warranty periods are required
7. Environmental Management: Include for projects with significant environmental impact
8. Local Content Requirements: Include when local content or labor requirements apply
9. Anti-Corruption: Include for government projects or when required by stakeholders
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed construction schedule with milestones
3. Schedule 3 - Bill of Quantities: Itemized list of quantities and prices
4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments
5. Schedule 5 - Site Information: Site details, access points, and existing conditions
6. Schedule 6 - Quality Specifications: Detailed quality standards and testing requirements
7. Schedule 7 - Required Insurances: Details of required insurance coverage
8. Schedule 8 - Forms of Certificates: Ƶ for completion certificates and other formal documents
9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements
10. Appendix A - Permits and Licenses: Copies of relevant permits and licenses
11. Appendix B - Technical Drawings: Complete set of construction drawings
12. Appendix C - Material Specifications: Detailed specifications for construction materials
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Industrial Construction
Infrastructure Development
Mining Construction
Energy Facilities
Transportation Infrastructure
Healthcare Facilities
Educational Facilities
Retail Development
Hospitality Construction
Mixed-use Development
Relevant Teams
Legal
Operations
Project Management
Procurement
Finance
Risk Management
Quality Assurance
Health and Safety
Technical Services
Commercial
Compliance
Business Development
Relevant Roles
Project Manager
Construction Manager
Legal Counsel
Contract Administrator
Chief Executive Officer
Chief Operating Officer
Site Supervisor
Procurement Manager
Quality Control Manager
Health and Safety Manager
Risk Manager
Finance Director
Technical Director
Commercial Director
Operations Manager
Business Development Manager
Compliance Officer
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