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Construction Service Agreement

Construction Service Agreement Template for Indonesia

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Key Requirements PROMPT example:

Construction Service Agreement

"I need a Construction Service Agreement under Indonesian law for a commercial office building project in Jakarta, with project completion scheduled for March 2025, including specific provisions for green building certification and local content requirements."

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Document background
The Construction Service Agreement is a vital legal instrument used in Indonesia when engaging contractors for construction projects. This document, governed by Indonesian law including Law No. 2 of 2017 on Construction Services and related regulations, is essential for projects ranging from commercial buildings to infrastructure development. It establishes the legal framework for the construction relationship, incorporating local regulatory requirements, industry standards, and business practices specific to Indonesia. The agreement typically includes detailed provisions for scope of work, payment terms, compliance requirements, and risk allocation, while addressing specific Indonesian requirements such as local content rules and permit obligations. It serves as the primary contract document protecting both parties' interests while ensuring compliance with Indonesian construction and business regulations.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of construction services to be performed

5. Contract Price and Payment Terms: Payment amount, schedule, and methods including milestone payments

6. Timeline and Project Schedule: Project commencement, completion dates, and key milestones

7. Contractor's Obligations: Key responsibilities including quality standards, permits, and compliance requirements

8. Client's Obligations: Client's responsibilities including site access, approvals, and information provision

9. Materials and Equipment: Specifications for materials, procurement responsibilities, and quality standards

10. Health, Safety and Environment: Safety protocols, environmental compliance, and risk management requirements

11. Quality Control and Inspection: Quality standards, testing procedures, and acceptance criteria

12. Variations and Changes: Procedures for handling changes to scope, price, or timeline

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

14. Force Majeure: Events constituting force majeure and consequent procedures

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Process for resolving disputes including mediation and arbitration

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

18. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects

2. Intellectual Property Rights: IP ownership and licenses, relevant for projects involving design elements

3. Defects Liability: Extended warranty provisions beyond standard terms

4. Subcontracting: Terms for engaging and managing subcontractors

5. Site Conditions: Specific provisions regarding site conditions and related risks

6. Environmental Management Plan: Detailed environmental compliance requirements for environmentally sensitive projects

7. Local Content Requirements: Provisions for meeting Indonesian local content requirements

8. Testing and Commissioning: Detailed procedures for complex installations requiring testing

9. Training and Knowledge Transfer: Requirements for training client's personnel, if applicable

10. Liquidated Damages: Specific compensation for delays or performance failures

Suggested Schedules

1. Schedule 1 - Scope of Work: Detailed technical specifications and work requirements

2. Schedule 2 - Project Timeline: Detailed project schedule with milestones and deadlines

3. Schedule 3 - Payment Schedule: Detailed breakdown of payment terms and milestone payments

4. Schedule 4 - Site Information: Site details, access points, and relevant site conditions

5. Schedule 5 - Material Specifications: Detailed specifications for materials and equipment

6. Schedule 6 - Quality Standards: Specific quality requirements and acceptance criteria

7. Schedule 7 - Key Personnel: List of key personnel and their qualifications

8. Schedule 8 - Required Permits: List of required permits and responsibilities for obtaining them

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

10. Appendix A - Technical Drawings: Construction drawings and technical specifications

11. Appendix B - Forms and Certificates: Standard forms for variations, completion certificates, etc.

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

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

alex.den.21@genieai.co
Relevant legal definitions























































Clauses









































Relevant Industries

Construction

Real Estate Development

Infrastructure

Manufacturing

Energy

Mining

Commercial Property

Residential Property

Industrial Development

Hospitality

Healthcare

Education

Retail

Transportation

Telecommunications

Relevant Teams

Legal

Operations

Construction

Project Management

Procurement

Health Safety and Environment

Finance

Risk and Compliance

Technical Services

Quality Assurance

Business Development

Facilities Management

Engineering

Environmental

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Legal Counsel

Contract Manager

Chief Executive Officer

Chief Operating Officer

Site Supervisor

Procurement Manager

Quality Control Manager

Health and Safety Officer

Environmental Compliance Officer

Risk Manager

Finance Director

Technical Director

Operations Manager

Business Development Manager

Facilities Manager

Project Engineer

Architect

Quantity Surveyor

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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