Simple Construction Contract

Simple Construction Contract Template for Indonesia

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Key Requirements PROMPT example:

"I need a Simple Construction Contract for a residential renovation project in Jakarta, with work starting March 2025, including provisions for local material sourcing and staged payments across a 6-month construction period."

Document background

The Simple Construction Contract is specifically designed for use in the Indonesian construction industry where projects have a clearly defined scope and relatively straightforward requirements. This document type is particularly suitable for small to medium-sized construction projects where the works are well-defined and the risk profile is manageable. The contract incorporates essential elements required by Indonesian law, including provisions from Law No. 2 of 2017 on Construction Services and related regulations. It provides a comprehensive yet accessible framework for managing construction projects, covering aspects such as payment terms, timeline management, quality standards, and dispute resolution mechanisms. The document is structured to balance practical usability with legal compliance, making it suitable for projects where a full FIDIC suite of contracts would be too complex but where a proper legal framework is still required.

Suggested Sections

1. Parties: Identification and details of the contracting parties (Owner/Employer and Contractor)

2. Background: Context of the construction project and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Scope of Work: Detailed description of the construction work to be performed

5. Contract Price and Payment Terms: Amount payable, payment schedule, and payment conditions

6. Timeline and Completion: Project schedule, completion date, and milestones

7. Contractor's Obligations: Key responsibilities including workmanship, materials, and compliance with regulations

8. Owner's Obligations: Responsibilities including site access, permits, and approvals

9. Quality and Standards: Required quality levels and applicable construction standards

10. Variations: Process for handling changes to scope or specifications

11. Health and Safety: Safety requirements and responsibilities

12. Insurance and Indemnity: Required insurance coverage and indemnification provisions

13. Defects Liability: Warranty period and rectification of defects

14. Termination: Grounds and process for contract termination

15. Dispute Resolution: Process for resolving disputes

16. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Force Majeure: Provisions for unforeseeable circumstances - include if project is in area prone to natural disasters or extended timeline

2. Intellectual Property: IP rights and obligations - include if design elements or proprietary methods are involved

3. Environmental Compliance: Environmental protection measures - include if project has significant environmental impact

4. Local Content Requirements: Local workforce and material requirements - include if required by local regulations

5. Advance Payment: Terms for advance payment - include if advance payment is required

6. Performance Security: Bank guarantee or performance bond requirements - include for larger projects

7. Subcontracting: Rules for subcontracting - include if subcontractors will be used

Suggested Schedules

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

2. Schedule 2 - Bill of Quantities: Itemized list of materials and works with quantities and rates

3. Schedule 3 - Project Timeline: Detailed project schedule with milestones

4. Schedule 4 - Payment Schedule: Detailed breakdown of payment installments and conditions

5. Schedule 5 - Site Information: Site details, access points, and existing conditions

6. Schedule 6 - Required Permits: List of required permits and responsible parties

7. Schedule 7 - Key Personnel: List of key personnel from both parties

8. Appendix A - Forms and Notices: Standard forms for variations, completion certificates, etc.

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

Residential Construction

Commercial Construction

Industrial Construction

Infrastructure Development

Real Estate Development

Building Renovation

Interior Fit-out

Small-scale Construction

Property Development

Relevant Teams

Legal

Construction

Project Management

Procurement

Commercial

Operations

Risk & Compliance

Technical Services

Property Development

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contract Administrator

Legal Counsel

Procurement Manager

Site Manager

Quality Control Manager

Cost Controller

Risk Manager

Commercial Manager

Technical Director

Development Manager

Property Manager

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