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Construction Subcontract Template for Indonesia

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Key Requirements PROMPT example:

Construction Subcontract

"I need a Construction Subcontract for a high-rise residential development project in Jakarta, where we'll be subcontracting the mechanical and electrical works to a local specialist contractor, with work scheduled to commence in March 2025."

Document background
This Construction Subcontract template is designed for use in the Indonesian construction industry where a main contractor needs to delegate specific portions of construction work to specialized subcontractors. It ensures compliance with Indonesian law, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations, while addressing crucial aspects such as licensing requirements, local content rules, and mandatory insurance coverage. The document is structured to protect both parties' interests while maintaining alignment with the main construction contract and Indonesian regulatory requirements. It includes comprehensive provisions for work execution, payment mechanisms, quality control, and dispute resolution, making it suitable for various construction projects ranging from building works to infrastructure development. The agreement particularly emphasizes compliance with Indonesian safety standards, labor laws, and environmental regulations, making it essential for projects requiring specialized subcontracted work within Indonesian jurisdiction.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor, including their registration details and construction service licenses

2. Background: Context of the main contract, project details, and basis for subcontracting

3. Definitions: Key terms used throughout the agreement, including project-specific and technical terms

4. Scope of Work: Detailed description of the subcontracted works, including technical specifications and standards

5. Contract Sum and Payment Terms: Pricing, payment schedule, retention money, and payment procedures

6. Duration and Program: Project timeline, milestones, and completion dates

7. Subcontractor's Obligations: Key responsibilities including quality standards, reporting, and compliance requirements

8. Main Contractor's Obligations: Responsibilities including site access, information provision, and coordination

9. Materials and Workmanship: Quality requirements, testing, and approval processes

10. Health, Safety and Environment: Safety standards, environmental compliance, and site regulations

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

12. Variations: Procedures for changes to scope, pricing, or timeline

13. Defects Liability: Warranty period and rectification obligations

14. Termination: Grounds and procedures for contract termination

15. Dispute Resolution: Process for resolving disputes under Indonesian law

16. General Provisions: Standard contractual clauses including notices, assignment, and governing law

Optional Sections

1. Performance Security: Required when the project value exceeds certain thresholds or when specified by the main contract

2. Intellectual Property Rights: Needed when the works involve design responsibilities or proprietary methods

3. Force Majeure: Detailed force majeure provisions beyond standard clauses, particularly relevant for long-term or high-risk projects

4. Local Content Requirements: Required when the project must meet specific Indonesian local content requirements

5. Customs and Import Duties: Necessary when imported materials or equipment are involved

6. Labor Requirements: Detailed section needed when significant local labor engagement is required or for specialized work permits

7. Environmental Management Plan: Required for projects with significant environmental impact

8. Quality Assurance Plan: Detailed quality management requirements for complex technical works

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Contract Price Breakdown: Detailed pricing schedule and bill of quantities

3. Schedule 3 - Program of Works: Detailed timeline and milestone dates

4. Schedule 4 - Key Personnel: List of key personnel and their qualifications

5. Schedule 5 - Required Insurances: Details of insurance types and coverage requirements

6. Schedule 6 - Forms and Certificates: Template forms for payment claims, variations, and completion certificates

7. Schedule 7 - Site Rules and Regulations: Site-specific requirements and procedures

8. Schedule 8 - Quality Control Requirements: Quality assurance procedures and standards

9. Appendix A - Main Contract Excerpts: Relevant provisions from the main contract that apply to the subcontract

10. Appendix B - Permits and Licenses: Copies of required permits and licenses

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














































Clauses









































Relevant Industries

Construction

Infrastructure

Real Estate

Engineering

Mining

Oil & Gas

Manufacturing

Industrial

Commercial Development

Residential Development

Energy

Transportation

Utilities

Relevant Teams

Legal

Construction

Project Management

Procurement

Operations

Health Safety Environment

Commercial

Risk & Compliance

Engineering

Finance

Quality Control

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Procurement Manager

Site Supervisor

Quality Control Manager

HSE Manager

Commercial Manager

Risk Manager

Operations Director

Technical Director

Chief Engineer

Quantity Surveyor

Cost Controller

Compliance Officer

Finance 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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