Agreement For Construction Work

Agreement For Construction Work Template for Indonesia

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Key Requirements PROMPT example:

"I need an Agreement For Construction Work for a 20-story commercial building project in Jakarta, including contractor's design responsibilities, with construction scheduled to commence in March 2025 and estimated completion within 24 months."

Document background

The Agreement For Construction Work is a fundamental document used in the Indonesian construction industry to establish legally binding obligations between project owners and contractors. It is essential for any construction project in Indonesia and must comply with Law No. 2 of 2017 on Construction Services and related regulations. This agreement type is used when engaging contractors for building works, infrastructure development, or facility construction, providing comprehensive coverage of project requirements, technical specifications, payment terms, and risk allocation. The document incorporates local regulatory requirements, including permits, environmental compliance, worker safety, and local content requirements where applicable. It is structured to protect both parties' interests while ensuring project delivery meets Indonesian construction standards and legal requirements.

Suggested Sections

1. Parties: Identification of the contracting parties, including their legal status and authority to enter into the agreement

2. Background: Context of the agreement and brief description of the construction project

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of the construction work to be performed

5. Contract Price and Payment Terms: Agreement on price, payment schedule, and payment mechanisms

6. Timeline and Completion: Project schedule, milestones, and completion requirements

7. Contractor Obligations: Key responsibilities and obligations of the contractor

8. Employer Obligations: Key responsibilities and obligations of the employer

9. Materials and Workmanship: Standards for materials and quality of work

10. Health, Safety and Environment: Safety requirements and environmental compliance obligations

11. Insurance and Indemnity: Insurance requirements and indemnification provisions

12. Variations: Procedures for handling changes to scope or specifications

13. Testing and Commissioning: Requirements for testing and commissioning of completed works

14. Defects Liability: Defects liability period and remediation obligations

15. Force Majeure: Provisions for handling unforeseen circumstances

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes

18. Governing Law: Specification of Indonesian law as governing law

19. Notices: Communication procedures and contact details

20. General Provisions: Miscellaneous legal provisions including assignment, waiver, and severability

Optional Sections

1. Design Responsibilities: Include when contractor has design obligations in addition to construction

2. Permits and Licenses: Detailed section when complex permitting is required or responsibilities need clarification

3. Site Conditions: Include when there are specific site challenges or unknown conditions to address

4. Subcontracting: Include when subcontracting is permitted and needs detailed regulation

5. Performance Security: Include when bank guarantees or performance bonds are required

6. Phase Completion: Include for projects with multiple completion phases

7. Intellectual Property: Include when design or innovative construction methods are involved

8. Local Content Requirements: Include when specific Indonesian local content requirements apply

9. Currency and Exchange Rate: Include for projects involving international payments

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and standards for the construction work

2. Bill of Quantities: Itemized list of quantities and prices for the work

3. Construction Drawings: Approved drawings and design documents

4. Project Timeline: Detailed project schedule with milestones

5. Payment Schedule: Detailed breakdown of payment terms and milestones

6. Site Information: Details about the construction site and conditions

7. Key Personnel: List of key personnel from both parties with roles and responsibilities

8. Forms and Procedures: Standard forms for variations, certifications, and other procedures

9. Insurance Requirements: Detailed insurance specifications and coverage requirements

10. HSE Requirements: Detailed health, safety, and environmental requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Commercial Real Estate

Residential Construction

Industrial Construction

Infrastructure Development

Energy & Power Plants

Transportation

Healthcare Facilities

Educational Facilities

Retail Development

Hospitality & Tourism

Manufacturing Facilities

Mining Infrastructure

Oil & Gas Facilities

Telecommunications Infrastructure

Water & Waste Management

Relevant Teams

Legal

Construction

Project Management

Procurement

Health Safety Environment

Commercial

Operations

Engineering

Risk & Compliance

Finance

Quality Control

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Site Manager

Procurement Manager

Quality Control Manager

HSE Manager

Commercial Manager

Technical Director

Chief Engineer

Risk Manager

Compliance Officer

Finance Director

Operations Manager

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