Construction Project Management Contract

Construction Project Management Contract Template for Indonesia

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Key Requirements PROMPT example:

"I need a Construction Project Management Contract for a large-scale hospital development project in Jakarta, Indonesia, with a project management consultant who will oversee multiple contractors and handle all government approvals, with project completion scheduled for March 2025."

Document background

The Construction Project Management Contract is a specialized agreement used when a project owner requires professional project management services for construction projects in Indonesia. This document is essential for projects requiring expert oversight and coordination, typically used in medium to large-scale construction initiatives. It complies with Indonesian construction laws, particularly Law No. 2 of 2017 and Government Regulation No. 22 of 2020, while incorporating international project management standards. The contract defines the Project Management Consultant's role in planning, monitoring, and controlling project execution, including scope, time, cost, quality, and risk management. It is structured to protect both parties' interests while ensuring project delivery meets local regulatory requirements and industry standards. The document is particularly important given Indonesia's complex regulatory environment and the need for clear delineation of responsibilities in construction projects.

Suggested Sections

1. Parties: Identification of the Client and the Project Management Consultant, including their legal status and registration details

2. Background: Context of the agreement, project overview, and basis for engagement

3. Definitions and Interpretation: Detailed definitions of terms used in the contract and rules of interpretation

4. Appointment and Scope of Services: Formal appointment and detailed scope of project management services

5. Consultant's Obligations: Core responsibilities and duties of the Project Management Consultant

6. Client's Obligations: Responsibilities and duties of the Client, including provision of information and access

7. Project Schedule and Milestones: Timeline, key dates, and project phases

8. Fees and Payment Terms: Compensation structure, payment schedule, and related terms

9. Performance Standards: Quality standards, KPIs, and performance requirements

10. Reporting and Communication: Requirements for project reporting, meetings, and communication protocols

11. Risk Management: Risk allocation, management procedures, and mitigation strategies

12. Insurance and Liability: Insurance requirements and limitation of liability provisions

13. Compliance and Permits: Regulatory compliance requirements and responsibility for obtaining permits

14. Confidentiality: Protection of confidential information and intellectual property

15. Term and Termination: Duration of agreement and grounds for termination

16. Dispute Resolution: Procedures for resolving disputes, including Indonesian law requirements

17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Design Review Services: Additional section when the PM is responsible for design review services

2. Cost Management Services: Detailed cost management responsibilities when required beyond basic services

3. Quality Assurance Program: Specific quality management requirements for complex projects

4. Health and Safety Management: Detailed HSE requirements for high-risk projects

5. Environmental Management: Environmental compliance and management for projects with significant environmental impact

6. Stakeholder Management: Additional requirements for projects with multiple stakeholders or public interest

7. Technology and Software Requirements: Specific requirements for project management software and systems

8. Local Content Requirements: Specific provisions for projects requiring local content compliance

9. Force Majeure: Detailed force majeure provisions for projects in high-risk areas

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of project management services and deliverables

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Project Timeline: Detailed project schedule, milestones, and deadlines

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

5. Schedule 5 - Reporting Requirements: Templates and requirements for project reports

6. Schedule 6 - Performance Standards: Detailed KPIs and performance measurement criteria

7. Schedule 7 - Client's Requirements: Specific technical and operational requirements from the client

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

9. Appendix A - Required Forms and Templates: Standard forms for project management activities

10. Appendix B - Relevant Permits and Licenses: Copies or lists of required regulatory approvals

11. Appendix C - HSE Requirements: Detailed health, safety, and environmental requirements

12. Appendix D - Quality Management Plan: Quality assurance and control procedures

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

Construction

Infrastructure

Real Estate Development

Industrial Development

Energy

Mining

Commercial Development

Hospitality

Healthcare

Education

Transportation

Manufacturing

Retail

Relevant Teams

Legal

Operations

Project Management

Commercial

Procurement

Risk Management

Quality Assurance

Health Safety Environment

Technical Services

Finance

Contract Administration

Relevant Roles

Project Director

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Risk Manager

Commercial Manager

Technical Director

Operations Manager

Procurement Manager

Quality Assurance Manager

HSE Manager

Cost Controller

Planning Engineer

Document Controller

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