Engineering Procurement And Construction Agreement

Engineering Procurement And Construction Agreement Template for Indonesia

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Key Requirements PROMPT example:

"I need an Engineering Procurement And Construction Agreement under Indonesian law for a 500MW solar power plant project in East Java, with planned construction start in March 2025, including specific provisions for local content requirements and environmental compliance."

Document background

The Engineering Procurement And Construction Agreement is a crucial document for large-scale industrial and infrastructure projects in Indonesia. It is typically used when a project owner requires a single contractor to take full responsibility for the design, procurement, and construction of a facility or installation. This agreement is particularly important in the Indonesian context, where it must comply with specific local regulations including Law No. 2 of 2017 on Construction Services, environmental regulations, and local content requirements. The document provides comprehensive coverage of all project aspects, from initial engineering through to final commissioning, including detailed technical specifications, commercial terms, risk allocation, and performance guarantees. It is structured to protect both parties' interests while ensuring compliance with Indonesian regulatory requirements and international best practices in project execution.

Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including Owner/Employer and Contractor

2. Background: Context of the project, including brief description of the facility to be constructed and parties' intentions

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Work: Detailed description of engineering, procurement, and construction obligations of the Contractor

5. Contract Price and Payment: Price structure, payment terms, milestones, and invoicing procedures

6. Project Schedule: Timeline, milestones, completion dates, and schedule management requirements

7. Contractor Obligations: Detailed responsibilities including design, procurement, construction, testing, and commissioning

8. Owner Obligations: Owner's responsibilities including site access, permits, and owner-supplied items

9. Quality Assurance and Control: Quality requirements, inspection procedures, and testing protocols

10. Changes and Variations: Procedures for handling changes to scope, price, or schedule

11. Testing and Commissioning: Requirements and procedures for testing, commissioning, and performance guarantees

12. Completion and Handover: Conditions for substantial and final completion, acceptance criteria

13. Defects Liability: Warranty obligations and defect rectification requirements

14. Risk and Insurance: Risk allocation, required insurance coverage, and indemnification

15. Force Majeure: Definition of force majeure events and consequences

16. Suspension and Termination: Rights and procedures for suspension and termination

17. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

18. Governing Law: Specification of Indonesian law as governing law and interpretation principles

Optional Sections

1. Interface Management: Required when multiple contractors are involved, defining interface points and coordination requirements

2. Local Content Requirements: Needed when project must comply with Indonesian local content regulations

3. Export Credit Agency Requirements: Required when project involves international financing or export credit agency support

4. Environmental and Social Requirements: Detailed section needed for projects with significant environmental impact

5. Technology License: Required when project involves licensed technology or processes

6. Training and Knowledge Transfer: Important for projects requiring operational training for owner's personnel

7. Site Security: Detailed section needed for projects in sensitive or high-risk locations

8. Government Approvals: Extended section needed for projects requiring extensive governmental permits

Suggested Schedules

1. Schedule 1 - Scope of Work: Detailed technical specifications and scope description

2. Schedule 2 - Project Schedule: Detailed timeline, milestones, and critical path activities

3. Schedule 3 - Price Schedule: Detailed breakdown of contract price, rates, and payment milestones

4. Schedule 4 - Site Information: Site details, conditions, and access requirements

5. Schedule 5 - Owner Supplied Items: List and specifications of items to be provided by Owner

6. Schedule 6 - Key Personnel: List of key personnel from both parties and their roles

7. Schedule 7 - Forms of Guarantees: Templates for performance bond, warranty bond, and other guarantees

8. Schedule 8 - Quality Requirements: Detailed quality standards and procedures

9. Schedule 9 - HSE Requirements: Health, safety, and environmental requirements

10. Schedule 10 - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning

11. Schedule 11 - Permits and Licenses: List of required permits and responsible parties

12. Schedule 12 - Performance Guarantees: Detailed performance parameters and testing procedures

13. Schedule 13 - Insurance Requirements: Detailed insurance requirements and coverage limits

14. Schedule 14 - Forms of Certificates: Templates for completion certificates and other formal documents

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

Power Generation

Oil and Gas

Petrochemicals

Manufacturing

Infrastructure

Mining

Renewable Energy

Industrial Plants

Transportation

Water Treatment

Telecommunications

Healthcare Facilities

Relevant Teams

Legal

Engineering

Procurement

Construction

Project Management

Commercial

Finance

Risk Management

Quality Assurance

Health Safety Environment

Operations

Technical Services

Document Control

Contract Administration

Relevant Roles

Project Director

Contract Manager

Legal Counsel

Chief Engineer

Procurement Manager

Construction Manager

Project Manager

Risk Manager

Commercial Director

Technical Director

Finance Director

HSE Manager

Quality Assurance Manager

Cost Controller

Document Controller

Claims Manager

Operations Director

Business Development Director

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