The Consortium Agreement Construction Project is a crucial document used when multiple companies collaborate to undertake significant construction projects in Indonesia. This agreement is particularly relevant for large-scale infrastructure, industrial, or commercial construction projects where combining expertise, resources, and capabilities is necessary. The document must comply with Indonesian legal requirements, particularly Law No. 2 of 2017 on Construction Services and related regulations, while incorporating international best practices in construction project management. It addresses essential aspects such as consortium formation, member contributions, project execution methodology, risk allocation, profit sharing, and governance structure. The agreement is designed to create a clear framework for collaboration while ensuring compliance with local content requirements, environmental regulations, and Indonesian business practices. It's particularly important for projects requiring specialized expertise, significant resources, or risk sharing among multiple parties.
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1. Parties: Identification of all consortium members and their legal details
2. Background: Context of the consortium formation and the construction project
3. Definitions and Interpretation: Key terms used in the agreement and interpretation rules
4. Formation and Purpose of Consortium: Legal basis of the consortium and its objectives
5. Consortium Members' Contributions: Financial, technical, and resource contributions from each member
6. Roles and Responsibilities: Specific duties and obligations of each consortium member
7. Project Execution: Implementation methodology and project management structure
8. Governance Structure: Decision-making processes and management framework
9. Financial Arrangements: Cost sharing, revenue distribution, and financial management
10. Liability and Indemnification: Risk allocation and liability framework between members
11. Compliance Requirements: Regulatory compliance obligations under Indonesian law
12. Intellectual Property Rights: Ownership and usage rights of IP within the consortium
13. Confidentiality: Protection of confidential information and trade secrets
14. Duration and Termination: Term of the agreement and termination provisions
15. Dispute Resolution: Mechanism for resolving disputes between consortium members
16. Governing Law: Application of Indonesian law and jurisdiction
1. Local Content Requirements: Specific section addressing Indonesian local content requirements, needed for projects with minimum local content obligations
2. Environmental Compliance: Detailed environmental obligations, required for projects with significant environmental impact
3. Labor and Employment: Specific provisions for labor management, needed when consortium directly employs significant workforce
4. Insurance Requirements: Detailed insurance obligations, important for high-risk construction projects
5. Force Majeure: Specific force majeure provisions, recommended for long-term or high-value projects
6. Anti-Corruption Compliance: Detailed anti-corruption provisions, important for public sector projects
7. Change in Consortium Membership: Procedures for changes in membership, needed for long-term consortiums
1. Project Scope and Specifications: Detailed technical specifications and scope of the construction project
2. Consortium Members' Participation Percentages: Detailed breakdown of ownership and participation ratios
3. Financial Contribution Schedule: Timeline and details of financial contributions from each member
4. Project Timeline: Detailed project schedule and milestones
5. Resource Allocation Matrix: Detailed breakdown of resource commitments from each member
6. Performance Guarantees: Forms of performance guarantees and bonds
7. Insurance Requirements: Detailed insurance specifications and coverage requirements
8. Technical Standards Compliance: List of applicable technical standards and compliance requirements
9. Key Personnel: List of key personnel from each consortium member
10. Dispute Resolution Procedures: Detailed procedures for various types of disputes
11. Form of Parent Company Guarantee: Template for parent company guarantees if required
12. Quality Assurance Plan: Detailed quality management procedures and standards
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