Document background
The Construction Project Agreement serves as the primary contractual document for construction projects in Indonesia, governed by Indonesian law and particularly Law No. 2 of 2017 on Construction Services. This agreement is essential for any significant construction undertaking, whether commercial, residential, or infrastructure projects. It provides a comprehensive framework for managing construction projects, including detailed specifications of work scope, quality standards, timelines, and payment terms. The document ensures compliance with local regulations, addresses risk allocation between parties, and includes provisions for project management, dispute resolution, and environmental compliance. It's particularly important in the Indonesian context due to specific local content requirements, licensing procedures, and regulatory oversight in the construction sector. The agreement typically involves multiple stakeholders and may require additional documentation such as performance bonds, insurance certificates, and various regulatory permits.
