Document background
The Simple Construction Agreement is designed for use in the Indonesian construction industry where parties require a clear, legally compliant but uncomplicated framework for construction projects. It is particularly suited for small to medium-sized construction works where the full complexity of a major construction contract is unnecessary. The agreement incorporates essential requirements from Indonesian construction law, including Law No. 2 of 2017 on Construction Services and Government Regulation No. 22 of
2020, while maintaining accessibility for regular business use. It covers fundamental aspects such as scope definition, payment terms, timelines, and quality standards, making it suitable for projects like small commercial buildings, residential constructions, or basic renovation works. The document serves as a balanced instrument protecting both the property owner's and contractor's interests while ensuring compliance with local building regulations and construction standards.
