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Demolition Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for demolition works. This contract outlines the responsibilities between the property owner and demolition contractor, including scope of works, safety requirements, environmental compliance, and risk allocation. It incorporates specific provisions aligned with Indonesian construction regulations, environmental protection laws, and local building codes, while addressing crucial aspects such as permits, waste management, and worker safety in accordance with Indonesian labor laws.

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What is a Demolition Contract?

The Demolition Contract is essential for any property owner or developer in Indonesia requiring professional demolition services. This document is specifically designed to comply with Indonesian construction and environmental regulations, including Law No. 2 of 2017 on Construction Services and related environmental protection statutes. It should be used whenever engaging a contractor for structural demolition, whether for redevelopment, clearing, or renovation purposes. The contract covers critical elements including scope definition, safety protocols, environmental safeguards, risk management, and insurance requirements, while ensuring compliance with local permitting processes and waste disposal regulations. It's particularly important in Indonesia's rapidly developing urban areas where demolition works must carefully consider dense populations and adjacent properties.

What sections should be included in a Demolition Contract?

1. Parties: Identification of the contracting parties - typically the property owner/principal and the demolition contractor

2. Background: Context of the agreement and brief description of the property to be demolished

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

4. Scope of Works: Detailed description of demolition works to be performed, including specific structures and areas

5. Contract Sum and Payment Terms: Agreement on pricing, payment schedule, and payment conditions

6. Timeline and Completion: Project schedule, commencement date, completion date, and any milestone dates

7. Contractor's Obligations: Key responsibilities including permits, safety measures, site management, and waste disposal

8. Principal's Obligations: Responsibilities of the property owner including site access and provision of necessary information

9. Safety and Environmental Requirements: Mandatory safety protocols and environmental protection measures

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

11. Termination: Circumstances and procedures for contract termination

12. Dispute Resolution: Procedures for handling disputes between parties

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

What sections are optional to include in a Demolition Contract?

1. Hazardous Materials: Specific procedures and responsibilities for handling hazardous materials, required when asbestos or other hazardous materials are present

2. Heritage Considerations: Special requirements for buildings with historical significance or protected status

3. Salvage Rights: Provisions regarding ownership and handling of salvageable materials

4. Temporary Services: Arrangements for temporary utilities and services during demolition

5. Neighboring Properties: Special provisions for demolition work affecting adjacent properties

6. Traffic Management: Required for sites where demolition will impact public roads or access

7. Noise and Dust Control: Additional requirements for sensitive areas or where specifically required by local regulations

What schedules should be included in a Demolition Contract?

1. Schedule 1 - Site Plan and Drawings: Detailed plans showing the extent of demolition works and site boundaries

2. Schedule 2 - Scope of Works Specification: Detailed technical specifications for the demolition work

3. Schedule 3 - Program of Works: Detailed timeline and sequence of demolition activities

4. Schedule 4 - Bill of Quantities: Itemized list of works and associated costs

5. Schedule 5 - Safety Management Plan: Detailed safety procedures and risk management strategies

6. Schedule 6 - Environmental Management Plan: Procedures for environmental protection and waste management

7. Schedule 7 - Required Permits and Licenses: List of required regulatory approvals and their status

8. Schedule 8 - Insurance Certificates: Copies of required insurance policies and certificates

9. Appendix A - Site Inspection Report: Pre-demolition condition assessment of the site and surrounding areas

10. Appendix B - Hazardous Materials Report: Assessment and management plan for any hazardous materials

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

Jurisdiction

Indonesia

Document Type

Service Contract

Cost

Free to use

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