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Construction Framework Agreement Template for Indonesia

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Key Requirements PROMPT example:

Construction Framework Agreement

"I need a Construction Framework Agreement under Indonesian law for a real estate development company planning multiple residential projects in Jakarta, with specific provisions for local content requirements and environmental compliance, to be effective from March 2025."

Document background
The Construction Framework Agreement is designed for situations where a client anticipates requiring multiple construction projects or phases over an extended period. This document type is particularly valuable in the Indonesian construction sector, where it provides a streamlined approach to managing multiple construction projects under a single overarching agreement. It complies with Indonesian construction laws, particularly Law No. 2 of 2017 and its implementing regulations, while incorporating international best practices in construction contracting. The framework agreement sets out standard terms, conditions, and procedures that will apply to all subsequent construction projects, with specific details for each project being agreed through individual work orders. This approach reduces negotiation time and ensures consistency across multiple projects while maintaining flexibility to accommodate project-specific 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 framework agreement, including the purpose and scope of the construction services relationship

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules for interpretation

4. Framework Structure: Explanation of how the framework operates, including work order procedures and project activation mechanisms

5. Scope of Services: General description of construction services covered under the framework

6. Duration and Term: Period of the framework agreement, including extension options

7. Work Order Process: Procedures for issuing, accepting, and executing specific work orders under the framework

8. Pricing and Payment Terms: Framework pricing structure, payment mechanisms, and terms for specific work orders

9. Performance Standards: Required quality standards, compliance with regulations, and performance expectations

10. Health and Safety Requirements: Mandatory safety protocols and compliance with Indonesian safety regulations

11. Contractor Obligations: General and specific obligations of the contractor under the framework

12. Client Obligations: General and specific obligations of the client under the framework

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

14. Warranties and Guarantees: Standard warranties for construction work and materials

15. Variations and Changes: Procedures for handling changes to work orders or framework terms

16. Suspension and Termination: Rights and procedures for suspending or terminating the framework or specific work orders

17. Dispute Resolution: Procedures for resolving disputes, including reference to Indonesian law

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

19. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction details

20. General Provisions: Standard boilerplate clauses including notices, assignment, and severability

Optional Sections

1. Environmental Management: Required when projects may have significant environmental impact or require specific environmental permits

2. Local Content Requirements: Include when there are specific requirements for using local resources or meeting local content quotas

3. Technology and IP Rights: Necessary when the construction involves specialized technology or intellectual property considerations

4. Security Requirements: Include for projects requiring specific security measures or located in sensitive areas

5. Community Relations: Important for projects with significant community impact or requiring community engagement

6. Anti-Corruption Provisions: Enhanced provisions beyond standard compliance clauses for high-risk or government-related projects

7. Performance Bonds: Include when specific performance guarantees are required beyond standard warranties

8. Training and Knowledge Transfer: Required when local workforce development or knowledge transfer is part of the project scope

Suggested Schedules

1. Schedule 1 - Pricing Schedule: Detailed pricing framework, rates, and cost calculation mechanisms

2. Schedule 2 - Form of Work Order: Template for individual work orders under the framework

3. Schedule 3 - Technical Standards: Specific technical requirements and standards for construction works

4. Schedule 4 - Key Personnel: List of key personnel from both parties and their roles

5. Schedule 5 - Equipment and Materials Standards: Specifications for approved equipment and materials

6. Schedule 6 - Health and Safety Requirements: Detailed safety procedures and requirements

7. Schedule 7 - Quality Assurance Procedures: Detailed quality control and assurance processes

8. Schedule 8 - Performance Metrics: Key performance indicators and measurement criteria

9. Schedule 9 - Insurance Requirements: Detailed insurance specifications and coverage requirements

10. Appendix A - Site Access Procedures: Procedures for accessing and securing construction sites

11. Appendix B - Reporting Templates: Standard templates for progress reports and documentation

12. Appendix C - Permits and Licenses: List of required permits and responsibilities for obtaining them

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























































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Relevant Industries

Construction

Infrastructure

Real Estate Development

Industrial Development

Commercial Property

Residential Development

Mining

Oil and Gas

Manufacturing

Hospitality

Healthcare

Education

Retail

Transportation

Energy

Telecommunications

Relevant Teams

Legal

Operations

Procurement

Construction

Commercial

Finance

Risk and Compliance

Project Management

Health and Safety

Quality Assurance

Technical Services

Business Development

Facilities Management

Relevant Roles

Construction Director

Project Manager

Contract Manager

Legal Counsel

Chief Operating Officer

Procurement Manager

Development Director

Facilities Manager

Commercial Director

Operations Manager

Technical Director

Risk Manager

Compliance Officer

Chief Financial Officer

Site Manager

Construction Supervisor

Quality Assurance Manager

Health and Safety 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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