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Build Agreement Template for Indonesia

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Key Requirements PROMPT example:

Build Agreement

"I need a Build Agreement for a luxury hotel construction project in Jakarta, Indonesia, with a project value of USD 50 million and construction period from March 2025 to December 2025, including specific provisions for sustainable building practices and local content requirements."

Document background
The Build Agreement serves as the primary contractual document for construction projects in Indonesia, governed by Law No. 2 of 2017 on Construction Services and related regulations. This agreement is essential for any significant construction project, whether commercial, residential, or infrastructure-related, where a formal contractual relationship between an owner/employer and a contractor is required. The document comprehensively addresses all aspects of the construction process, from project initiation to completion and defects liability period, incorporating specific Indonesian regulatory requirements, local building codes, and industry standards. It includes detailed provisions for payment mechanisms, quality control, safety requirements, and dispute resolution procedures, while ensuring compliance with local content requirements and environmental regulations. The Build Agreement is particularly crucial as it must align with Indonesia's civil law system and specific construction industry regulations, making it distinct from common law jurisdiction construction contracts.
Suggested Sections

1. Parties: Identification of the contracting parties including the owner/employer and the contractor, with their complete legal details

2. Background: Context of the agreement, including project overview and parties' intentions

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Work: Detailed description of the construction work to be performed, including general obligations of the contractor

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

6. Project Timeline: Construction schedule, completion dates, and milestone deadlines

7. Materials and Workmanship: Standards for materials, quality requirements, and workmanship expectations

8. Variations and Changes: Procedures for handling changes to scope, specifications, or other contract terms

9. Site Access and Conditions: Terms regarding access to the construction site and site-related obligations

10. Testing and Completion: Requirements for testing, commissioning, and completion certification

11. Defects Liability: Contractor's obligations regarding defects and warranty period

12. Insurance and Securities: Required insurance coverage and performance securities

13. Force Majeure: Provisions for handling unforeseen circumstances and their impact

14. Termination: Grounds and procedures for contract termination

15. Dispute Resolution: Mechanisms for resolving disputes between parties

16. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

Optional Sections

1. Environmental Compliance: Required when project has significant environmental impact or requires environmental permits

2. Local Content Requirements: Needed when project must comply with Indonesian local content regulations

3. Intellectual Property Rights: Required when design or technology transfer is involved

4. Consortium Provisions: Needed when contractor is a consortium or joint venture

5. Step-In Rights: Required for large projects with financing arrangements

6. Anti-Corruption Provisions: Detailed provisions required for government projects or large-scale developments

7. Health and Safety Requirements: Detailed section needed for high-risk construction projects

8. Security Requirements: Required for projects in sensitive locations or with specific security needs

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical requirements and specifications for the construction work

2. Schedule 2 - Site Plan and Drawings: Architectural and engineering drawings, site plans and layouts

3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and prices for construction elements

4. Schedule 4 - Payment Schedule: Detailed payment milestones and amounts

5. Schedule 5 - Construction Program: Detailed timeline of construction activities and milestones

6. Schedule 6 - Key Personnel: List of key personnel from both parties involved in the project

7. Schedule 7 - Forms of Securities: Templates for bank guarantees and other required securities

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage limits

9. Schedule 9 - Permits and Licenses: List of required permits and responsibilities for obtaining them

10. Appendix A - Quality Assurance Plan: Detailed quality control and assurance procedures

11. Appendix B - HSE Requirements: Health, safety, and environmental requirements and procedures

Authors

Alex Denne

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

Relevant legal definitions


















































Clauses











































Relevant Industries

Real Estate Development

Infrastructure

Commercial Construction

Industrial Construction

Residential Development

Energy & Utilities

Manufacturing

Hospitality

Healthcare

Education

Retail

Transportation

Relevant Teams

Legal

Construction

Project Management

Finance

Procurement

Operations

Risk Management

Quality Assurance

Health and Safety

Commercial

Development

Technical Services

Compliance

Contract Administration

Relevant Roles

Project Director

Construction Manager

Legal Counsel

Contract Manager

Project Manager

Chief Financial Officer

Risk Manager

Technical Director

Procurement Manager

Operations Director

Site Manager

Quality Assurance Manager

Health and Safety Manager

Commercial Director

Development Director

Business Development Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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