The Collaboration Agreement Between Builder And Owner is a crucial legal document used in Indonesian construction projects to establish a formal working relationship between property owners and construction companies. It is particularly relevant when undertaking new construction projects, major renovations, or development works in Indonesia. The agreement must comply with Indonesian construction laws, including Law No. 2 of 2017 on Construction Services and the Indonesian Civil Code. This document is essential for protecting both parties' interests by clearly defining project scope, responsibilities, payment terms, construction standards, and dispute resolution mechanisms. It serves as the primary reference point for project execution and helps ensure smooth project delivery while maintaining compliance with local regulations and industry standards.
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1. Parties: Identification and details of the Owner and Builder, including their legal status and registration details
2. Background: Context of the agreement, including the Owner's intention to construct and the Builder's qualification and capacity
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed by the Builder
5. Project Timeline: Construction schedule, milestones, and completion dates
6. Payment Terms: Payment structure, amounts, schedule, and payment conditions
7. Rights and Obligations: Detailed responsibilities of both parties throughout the construction process
8. Construction Standards: Quality standards, building codes, and regulatory compliance requirements
9. Materials and Equipment: Specifications for materials, procurement responsibilities, and quality requirements
10. Site Access and Security: Terms regarding access to the construction site and security measures
11. Variations and Changes: Process for managing changes to scope, timeline, or costs
12. Insurance and Indemnity: Insurance requirements and indemnification obligations
13. Defects Liability: Builder's obligations regarding defects and warranty period
14. Termination: Grounds and process for termination of the agreement
15. Dispute Resolution: Process for resolving disputes between parties
16. General Provisions: Standard legal provisions including notices, governing law, and assignment
1. Force Majeure: Provisions for handling unforeseen circumstances - recommended for longer projects
2. Environmental Compliance: Specific environmental obligations - needed for projects with significant environmental impact
3. Subcontracting: Terms for engaging subcontractors - include if subcontracting will be permitted
4. Intellectual Property: IP rights in designs and documentation - important for custom or innovative designs
5. Confidentiality: Protection of confidential information - relevant for projects involving proprietary designs or methods
6. Local Community Relations: Management of community impact - important for large or public-facing projects
7. Performance Bonds: Requirements for performance guarantees - typically for larger projects
8. Liquidated Damages: Pre-agreed damages for specific breaches - recommended for time-sensitive projects
1. Schedule 1 - Project Specifications: Detailed technical specifications of the construction work
2. Schedule 2 - Site Plan and Drawings: Architectural and engineering drawings, site plans
3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and costs
4. Schedule 4 - Construction Schedule: Detailed timeline with milestones and critical path
5. Schedule 5 - Payment Schedule: Detailed payment terms, installments, and conditions
6. Schedule 6 - Quality Standards: Specific quality requirements and acceptance criteria
7. Schedule 7 - Required Permits and Approvals: List of necessary permits and responsible parties
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage amounts
9. Appendix A - Forms and Certificates: Standard forms for variations, completion certificates, etc.
10. Appendix B - Health and Safety Requirements: Specific health and safety protocols and requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Commercial Property
Residential Property
Industrial Development
Infrastructure
Hospitality
Retail
Healthcare
Education
Relevant Teams
Legal
Operations
Project Management
Construction
Property Development
Procurement
Finance
Risk Management
Quality Assurance
Compliance
Relevant Roles
Construction Manager
Project Director
Property Developer
Legal Counsel
Contract Manager
Site Supervisor
Architect
Quantity Surveyor
Building Inspector
Risk Manager
Procurement Manager
Operations Director
Development Manager
Chief Executive Officer
Financial Controller
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