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The Building Construction Agreement is a fundamental document used in Indonesian construction projects to establish legally binding obligations between property owners/developers and construction contractors. This agreement is essential for any construction project in Indonesia, whether commercial, residential, or industrial, and must comply with Law No. 2 of 2017 on Construction Services and related regulations. The document typically includes detailed specifications of the construction work, pricing structures, timelines, quality standards, safety requirements, and dispute resolution procedures. It's particularly important as it incorporates local building codes, environmental regulations, and specific regional requirements for construction permits (IMB). The agreement serves as the primary reference point for project execution, risk allocation, and dispute resolution throughout the construction phase.

1. Parties: Identification of the Owner/Employer and the Contractor, including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, including brief project overview and 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 obligations of the Contractor

5. Contract Price and Payment Terms: Total contract value, payment schedule, payment methods, and related financial terms

6. Project Timeline: Construction schedule, completion date, milestones, and provisions for extensions of time

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

8. Contractor's Obligations: Detailed responsibilities including permits, licenses, workforce, equipment, and safety measures

9. Owner's Obligations: Owner's responsibilities including site access, approvals, and information provision

10. Supervision and Inspection: Rights and procedures for work supervision, testing, and inspection

11. Variations: Procedures for handling changes to scope, specifications, or other contract terms

12. Safety and Environmental Requirements: Safety standards, environmental protection measures, and compliance requirements

13. Insurance and Indemnities: Required insurance coverage and indemnification obligations

14. Defects Liability: Defects liability period, remediation procedures, and warranties

15. Force Majeure: Provisions for unforeseen circumstances and their impact on contract performance

16. Termination: Grounds and procedures for contract termination by either party

17. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

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

19. Notices: Methods and addresses for official communications between parties

20. General Provisions: Standard contractual provisions including assignment, waiver, and severability