The Development Management Agreement is essential for large-scale development projects in Indonesia where professional project oversight is required. This agreement type is commonly used when a property owner or developer needs specialized expertise to manage complex development projects while maintaining strategic control. The document establishes the framework for project execution, covering aspects such as service scope, fee structures, risk allocation, and compliance with Indonesian regulations including Law No. 2 of 2017 on Construction Services, environmental protection laws, and local building regulations. It's particularly important for ensuring proper project governance, regulatory compliance, and risk management in the Indonesian construction and development sector, where specific local requirements and permits must be carefully managed.
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1. Parties: Identification of the developer, owner, and development manager with their complete legal details
2. Background: Context of the development project, purpose of the agreement, and brief description of the property
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Formal appointment of development manager and detailed scope of services
5. Development Manager's Obligations: Comprehensive list of responsibilities and duties of the development manager
6. Owner's Obligations: Rights and responsibilities of the property owner
7. Project Parameters: Key project specifications, timelines, and deliverables
8. Fees and Payment Terms: Development management fees, payment schedule, and reimbursable expenses
9. Project Governance: Decision-making process, approval requirements, and reporting structure
10. Compliance and Permits: Regulatory compliance requirements and responsibility for obtaining permits
11. Risk Allocation: Distribution of risks between parties and risk management procedures
12. Insurance and Liability: Insurance requirements and limitation of liability provisions
13. Term and Termination: Duration of agreement and circumstances for termination
14. Dispute Resolution: Procedures for resolving disputes including jurisdiction under Indonesian law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Multi-Phase Development: Additional provisions for projects with multiple development phases
2. Third-Party Contractors: Framework for engaging and managing third-party contractors
3. Environmental Management: Specific environmental obligations beyond standard requirements
4. Community Relations: Provisions for managing community engagement and social impact
5. Force Majeure: Detailed provisions for handling unforeseen circumstances
6. Intellectual Property: Provisions regarding ownership and use of project-related IP
7. Foreign Investment Provisions: Additional requirements if foreign investment is involved
8. Special Local Requirements: Provisions specific to local jurisdiction requirements
1. Schedule 1 - Property Details: Detailed description of the development property and site plans
2. Schedule 2 - Services Scope: Detailed breakdown of development management services
3. Schedule 3 - Fee Structure: Detailed fee calculations and payment milestones
4. Schedule 4 - Project Timeline: Detailed project schedule and key milestones
5. Schedule 5 - Key Personnel: List of key personnel and their roles from both parties
6. Schedule 6 - Reporting Requirements: Templates and requirements for project reporting
7. Schedule 7 - Technical Specifications: Detailed technical requirements and standards
8. Schedule 8 - Required Permits: List of required permits and responsibilities
9. Appendix A - Power of Attorney: Standard power of attorney format if required
10. Appendix B - Insurance Requirements: Detailed insurance specifications and requirements
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