The Home Construction Agreement is a crucial legal document used in Indonesia when a property owner engages a contractor to build a residential property. It ensures compliance with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and related regulations. This agreement is essential for projects ranging from individual home construction to larger residential developments, providing a legally binding framework that outlines construction specifications, timelines, payment terms, and quality standards. It includes provisions for permits, inspections, and warranties as required by Indonesian law, while also addressing risk allocation, dispute resolution, and consumer protection measures. The document serves as a comprehensive guide for the entire construction process, protecting both the owner's and contractor's interests while ensuring compliance with local building codes and regulations.
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1. Parties: Identification of the Owner and the Contractor, including complete legal names, addresses, and registration details
2. Background: Context of the agreement, including brief description of the project and the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed, including general specifications and standards
5. Contract Price: Total cost of construction and payment terms, including payment schedule and method
6. Timeline and Completion: Project schedule, completion date, and provisions for extensions of time
7. Materials and Workmanship: Quality standards for materials and work execution, including testing and approval processes
8. Contractor's Obligations: Key responsibilities of the contractor, including permits, safety measures, and site management
9. Owner's Obligations: Key responsibilities of the owner, including site access and timely approvals
10. Variations: Process for handling changes to the scope of work and their impact on price and timeline
11. Inspections and Defects: Procedures for inspections, handling defects, and warranty provisions
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations
13. Termination: Grounds and procedures for contract termination by either party
14. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
15. Force Majeure: Provisions for handling unforeseen circumstances and their impact on the contract
16. Governing Law: Specification of Indonesian law as governing law and jurisdiction
1. Environmental Protection: Specific environmental requirements and compliance measures, used when project has significant environmental impact
2. Financing Arrangements: Details of project financing and related conditions, used when external financing is involved
3. Temporary Facilities: Provisions for temporary structures and facilities, used for larger construction projects
4. Subcontractors: Rules and conditions for engaging subcontractors, used when subcontracting is anticipated
5. Special Materials: Provisions for specially ordered or imported materials, used when project requires non-standard materials
6. Heritage Considerations: Special provisions for construction in heritage areas or affecting heritage structures
7. Neighbor Relations: Procedures for managing neighbor relations and access, used in dense urban settings
1. Schedule 1 - Construction Drawings: Detailed architectural and engineering drawings approved for construction
2. Schedule 2 - Technical Specifications: Detailed specifications for materials, finishes, and construction methods
3. Schedule 3 - Payment Schedule: Detailed breakdown of payment installments and milestones
4. Schedule 4 - Construction Timeline: Detailed project schedule with milestones and critical path
5. Schedule 5 - Bill of Quantities: Itemized list of materials and work items with quantities
6. Schedule 6 - Permits and Approvals: List of required permits and copies of obtained approvals
7. Appendix A - Site Plan: Detailed plan showing construction site boundaries and access points
8. Appendix B - Quality Control Plan: Procedures for ensuring quality control during construction
9. Appendix C - Safety Plan: Safety procedures and protocols for the construction site
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