The Standard Building Contract is designed for use in construction projects within Indonesia where a structured and comprehensive agreement is required between an employer and a contractor. This document is particularly suitable for medium to large-scale construction projects where detailed terms and conditions are necessary to govern the construction process. It incorporates requirements from Indonesian construction law, particularly Law No. 2 of 2017 on Construction Services and related regulations, while following established construction industry practices. The contract covers essential aspects including scope of works, payment mechanisms, quality standards, variations, extensions of time, and dispute resolution procedures. It is drafted to ensure compliance with local regulatory requirements while providing practical mechanisms for project execution and risk allocation between parties.
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1. Parties: Identification and details of the Employer and the Contractor
2. Background: Context of the construction project and purpose of the agreement
3. Definitions: Defined terms used throughout the contract
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Sum and Payment Terms: Price, payment schedule, and payment mechanisms
6. Duration and Programme: Project timeline, completion date, and key milestones
7. Contractor's Obligations: Key responsibilities and duties of the contractor
8. Employer's Obligations: Key responsibilities and duties of the employer
9. Materials and Workmanship: Quality standards and requirements for materials and work
10. Variations: Procedures for changes to the scope of works
11. Extensions of Time: Circumstances and procedures for time extensions
12. Defects Liability: Defects notification period and rectification procedures
13. Insurance and Indemnities: Required insurance coverage and indemnification provisions
14. Force Majeure: Provisions for unforeseen circumstances and their consequences
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Procedures for resolving disputes between parties
17. Governing Law: Specification of Indonesian law as governing law
1. Performance Security: Required when project value exceeds certain thresholds or when specifically requested by the Employer
2. Advance Payment: Include when advance payment is agreed between parties
3. Nominated Subcontractors: Include when specific subcontractors are to be nominated by the Employer
4. Price Adjustment: Include for longer-term projects susceptible to price fluctuations
5. Site Conditions: Include when specific site conditions need special attention or pose particular risks
6. Environmental Protection: Include when project has significant environmental impacts or requirements
7. Local Content Requirements: Include when project must meet specific local content requirements under Indonesian law
8. Technology Transfer: Include when required by Indonesian regulations for certain types of construction projects
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract sum
3. Schedule 3 - Programme of Works: Detailed construction schedule and milestones
4. Schedule 4 - Site Information: Site details, access points, and existing conditions
5. Schedule 5 - Forms of Certificates: Templates for payment, completion, and other certificates
6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and requirements
7. Schedule 7 - Key Personnel: List of key personnel from both parties
8. Schedule 8 - Required Permits: List of permits and licenses required for the project
9. Appendix A - Technical Drawings: Complete set of construction drawings
10. Appendix B - Material Specifications: Detailed specifications for materials to be used
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