The New Construction Agreement serves as the primary contractual document for construction projects in Indonesia, establishing the legal framework between property owners/developers and construction contractors. This agreement is essential for any new building or infrastructure project and must comply with Indonesian Construction Services Law (Law No. 2 of 2017), Building Law (Law No. 28 of 2002), and relevant local regulations. It is designed to protect all parties' interests while ensuring project delivery meets required standards and regulations. The document typically includes comprehensive details about project scope, technical specifications, payment terms, timelines, quality requirements, and risk allocation. It's particularly crucial for ensuring proper documentation and compliance in Indonesia's complex regulatory environment for construction projects.
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1. Parties: Identification of the Owner/Employer and the Contractor, including their legal details and representatives
2. Background: Context of the construction project, including the purpose and basic understanding between parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed, including specifications and standards
5. Contract Price: Total contract value, payment terms, and payment schedule
6. Project Timeline: Construction schedule, milestones, and completion dates
7. Contractor's Obligations: Detailed responsibilities of the contractor, including compliance with Indonesian construction regulations
8. Owner's Obligations: Responsibilities of the owner, including site access and permits
9. Quality Standards: Required quality standards and inspection procedures
10. Health and Safety: Safety requirements and compliance with Indonesian worker safety regulations
11. Insurance and Securities: Required insurance coverage and performance securities
12. Variations: Procedures for handling changes to scope or specifications
13. Force Majeure: Provisions for unforeseen circumstances and their handling
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Procedures for resolving disputes under Indonesian law
16. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
1. Environmental Management: Required when project has significant environmental impact or requires environmental permits
2. Local Community Relations: Needed for projects in populated areas or requiring community engagement
3. Intellectual Property Rights: Required when design or technology rights need protection
4. Import Requirements: Necessary when construction materials or equipment need to be imported
5. Subcontracting: Include when subcontractors will be engaged in the project
6. Anti-Corruption Provisions: Required for government projects or when dealing with public entities
7. Language Requirements: Needed when contract is bilingual Indonesian/English
1. Schedule 1 - Technical Specifications: Detailed technical requirements and construction specifications
2. Schedule 2 - Site Plan and Drawings: Architectural and engineering drawings, site layout
3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and prices
4. Schedule 4 - Construction Schedule: Detailed timeline of construction activities and milestones
5. Schedule 5 - Payment Schedule: Detailed payment terms and milestone payments
6. Schedule 6 - Required Permits: List of required permits and responsibilities for obtaining them
7. Schedule 7 - Quality Assurance Plan: Detailed quality control procedures and standards
8. Schedule 8 - HSE Requirements: Health, safety, and environmental requirements
9. Appendix A - Forms and Certificates: Standard forms for notices, certificates, and approvals
10. Appendix B - Insurance Requirements: Detailed insurance specifications and coverage requirements
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