The House Construction Agreement Between Owner Contractor is a crucial legal document used in Indonesia when a property owner engages a contractor to construct a residential property. This agreement is essential for projects ranging from single-family homes to luxury residences, and must comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and related regulations. The document outlines the entire construction process, from initial site preparation to final handover, including detailed specifications, quality standards, payment terms, and completion timelines. It incorporates necessary provisions for permits, insurance, warranties, and dispute resolution mechanisms while adhering to local building codes and environmental requirements. This agreement is designed to protect both parties' interests while ensuring smooth project execution within the Indonesian legal framework.
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1. Parties: Identification and details of the Owner and Contractor, including their legal names, addresses, and registration numbers
2. Background: Context of the agreement, including brief description of the construction 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 and Payment Terms: Total contract value, payment schedule, method of payment, and conditions for payment
6. Timeline and Completion: Project schedule, completion date, milestones, and provisions for extensions
7. Contractor's Obligations: Detailed responsibilities of the contractor, including quality standards, safety measures, and compliance requirements
8. Owner's Obligations: Responsibilities of the owner, including site access, permits, and approvals
9. Materials and Equipment: Specifications for materials, procurement responsibilities, and quality standards
10. Quality Control and Inspection: Quality assurance procedures, inspection rights, and acceptance criteria
11. Warranties and Defects Liability: Warranty terms, defects liability period, and remediation procedures
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations
13. Force Majeure: Provisions for unforeseen circumstances and their impact on the contract
14. Termination: Grounds and procedures for contract termination by either party
15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions
16. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters
1. Variations and Changes: Procedures for handling changes to scope of work or specifications, used when the project complexity suggests likelihood of changes
2. Subcontracting: Terms and conditions for subcontracting work, included when subcontractors are likely to be used
3. Environmental Protection: Specific environmental requirements and compliance measures, included for projects with significant environmental impact
4. Site Security: Special provisions for site security and access control, used in sensitive locations or high-value projects
5. Temporary Facilities: Requirements for temporary structures and facilities, included for larger projects requiring significant site setup
6. Intellectual Property: Protection of designs and technical documents, included when custom architectural designs are involved
7. Local Community Relations: Provisions for managing community impact and relations, used in densely populated areas
8. Performance Bonds: Requirements for performance bonds or bank guarantees, included for high-value projects
1. Schedule A - Detailed Construction Specifications: Comprehensive technical specifications for all aspects of construction
2. Schedule B - Construction Drawings: Approved architectural and engineering drawings
3. Schedule C - Bill of Quantities: Detailed breakdown of quantities and costs for materials and labor
4. Schedule D - Construction Timeline: Detailed project schedule with milestones and critical path
5. Schedule E - Payment Schedule: Detailed payment terms, installments, and milestone-linked payments
6. Schedule F - Material Specifications: Detailed specifications for all construction materials
7. Schedule G - Quality Control Procedures: Specific quality control and testing requirements
8. Schedule H - Safety Management Plan: Detailed safety procedures and protocols
9. Appendix 1 - Required Permits and Licenses: Copies of all necessary permits and licenses
10. Appendix 2 - Insurance Certificates: Copies of required insurance policies and certificates
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Property Development
Architecture
Engineering
Building Materials
Construction Equipment
Insurance
Legal Services
Relevant Teams
Legal
Construction
Project Management
Architecture
Engineering
Procurement
Risk & Compliance
Property Development
Quality Assurance
Health & Safety
Environmental
Finance
Operations
Relevant Roles
Construction Manager
Project Director
Site Supervisor
Contracts Manager
Legal Counsel
Property Developer
Architect
Structural Engineer
Quantity Surveyor
Risk Manager
Insurance Specialist
Compliance Officer
Building Inspector
Environmental Officer
Safety Manager
Procurement Manager
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