The Simple Building Contract is specifically designed for use in the Indonesian construction industry where a straightforward, comprehensive agreement is needed for building projects. It is most appropriate for small to medium-sized construction projects where the scope and requirements are clearly defined, and the project complexity does not warrant a more elaborate contract form. This document incorporates key requirements from Indonesian construction law, including Law No. 2 of 2017 on Construction Services and related regulations, while maintaining accessibility for non-legal professionals. The contract includes essential provisions for project execution, payment terms, quality standards, and dispute resolution, structured to facilitate smooth project delivery while protecting the interests of all parties involved. It is particularly useful when a balance is needed between legal thoroughness and practical usability in the Indonesian construction context.
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1. Parties: Identification and details of the contracting parties (Owner/Employer and Contractor)
2. Background: Context of the agreement and brief project overview
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Work: Detailed description of the construction work to be performed
5. Contract Sum: Agreed price for the works and payment terms
6. Time for Completion: Project timeline, completion date, and milestone requirements
7. Contractor Obligations: Key responsibilities and duties of the contractor
8. Owner Obligations: Key responsibilities and duties of the owner
9. Materials and Workmanship: Quality standards and requirements for materials and work
10. Variations: Process for handling changes to the scope of work
11. Health and Safety: Safety requirements and compliance with Indonesian regulations
12. Insurance and Indemnity: Required insurance coverage and indemnification provisions
13. Defects Liability: Defects correction period and responsibilities
14. Termination: Grounds and process for contract termination
15. Dispute Resolution: Process for resolving disputes under Indonesian law
16. Governing Law: Confirmation of Indonesian law as governing law
1. Environmental Protection: Additional environmental requirements for environmentally sensitive projects
2. Performance Security: Requirements for performance bonds or guarantees for larger projects
3. Quality Assurance: Detailed quality control procedures for complex projects
4. Subcontracting: Rules and procedures for engaging subcontractors
5. Site Conditions: Specific provisions regarding site access and conditions
6. Force Majeure: Provisions for unforeseen circumstances affecting project completion
7. Intellectual Property: IP rights provisions if design elements are involved
8. Local Community Obligations: Requirements for community engagement in sensitive areas
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Contract Sum Breakdown: Detailed breakdown of costs and payment schedule
3. Schedule 3 - Project Timeline: Detailed project schedule and milestones
4. Schedule 4 - Site Information: Site details, access points, and relevant site conditions
5. Schedule 5 - Required Permits: List of required permits and responsibilities
6. Schedule 6 - Insurance Requirements: Detailed insurance coverage requirements
7. Schedule 7 - Quality Standards: Specific quality standards and testing requirements
8. Appendix A - Forms: Standard forms for variations, completion certificates, etc.
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