Master Builders Subcontract Agreement

Master Builders Subcontract Agreement Template for Indonesia

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Key Requirements PROMPT example:

"Need a Master Builders Subcontract Agreement for a high-rise residential development project in Jakarta, with particular emphasis on local content requirements and environmental compliance; project value is approximately USD 50 million with planned completion in March 2025."

Document background

The Master Builders Subcontract Agreement is a critical document used in Indonesian construction projects when a main contractor needs to engage specialized subcontractors for specific portions of construction works. This agreement is designed to comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and its implementing regulations. It establishes a clear contractual framework that defines the rights, obligations, and responsibilities of both the main contractor and subcontractor, while ensuring alignment with the main construction contract. The document addresses key aspects including scope of works, payment terms, project timeline, quality requirements, health and safety standards, and dispute resolution mechanisms, while incorporating specific Indonesian regulatory requirements such as local content provisions and licensing requirements.

Suggested Sections

1. Parties: Identification of the Main Contractor and Subcontractor, including registration details and licenses

2. Background: Context of the agreement, reference to the main contract, and project overview

3. Definitions and Interpretation: Defined terms, rules of interpretation, and language requirements

4. Scope of Works: Detailed description of the subcontracted works and deliverables

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

6. Commencement and Time for Completion: Project timeline, milestones, and completion requirements

7. Subcontractor's Obligations: General and specific obligations, including compliance with laws and standards

8. Main Contractor's Obligations: Main contractor's responsibilities and support requirements

9. Materials, Plant and Equipment: Requirements for materials, equipment standards, and procurement procedures

10. Quality Assurance: Quality standards, inspection requirements, and acceptance procedures

11. Health, Safety and Environment: HSE requirements, compliance with regulations, and reporting procedures

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

13. Default and Termination: Events of default, remedies, and termination procedures

14. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction

15. General Provisions: Standard contractual provisions including notices, assignment, and amendments

Optional Sections

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

2. Intellectual Property Rights: IP provisions when design or technical innovations are involved

3. Force Majeure: Specific force majeure provisions beyond standard terms, particularly relevant in complex projects

4. Local Content Requirements: Specific provisions for local content and indigenous participation requirements

5. Environmental Management: Detailed environmental management requirements for environmentally sensitive projects

6. Training and Knowledge Transfer: Requirements for training local workforce or knowledge transfer, when required by main contract

7. Warranty Period Works: Extended warranty provisions for specific components or systems

Suggested Schedules

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

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

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

4. Schedule 4 - Quality Assurance Requirements: Specific quality standards and testing requirements

5. Schedule 5 - HSE Requirements: Detailed health, safety, and environmental requirements

6. Schedule 6 - Forms and Procedures: Standard forms for variations, claims, and notifications

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

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

9. Schedule 9 - Performance Security Forms: Templates for bank guarantees or performance bonds

10. Schedule 10 - Technical Standards: Applicable technical standards and specifications

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

Mining

Oil and Gas

Industrial Development

Commercial Development

Residential Development

Public Works

Transportation

Relevant Teams

Legal

Operations

Commercial

Procurement

Project Management

Construction Management

Health Safety Environment

Quality Control

Risk Management

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Commercial Manager

Procurement Manager

Site Manager

Quality Control Manager

HSE Manager

Risk Manager

Operations Director

Technical Director

Chief Operating Officer

Project Director

Claims Manager

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