The Standard Form of Building Contract serves as a foundational document for construction projects in Indonesia, providing a standardized framework that ensures compliance with Indonesian construction laws and regulations, particularly Law No. 2 of 2017 and its implementing regulations. This document is specifically designed for use in building construction projects where a clear, comprehensive agreement between the employer and contractor is required. It incorporates essential elements such as scope definition, payment mechanisms, quality standards, and risk allocation, while addressing specific Indonesian requirements regarding local content, permits, and statutory compliance. The contract is structured to protect the interests of all parties while facilitating efficient project execution and dispute resolution within the Indonesian legal context.
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1. Parties: Identification and details of the Employer and Contractor, including their legal status and representatives
2. Background: Context of the agreement and brief description of the project
3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the contract
4. Contract Documents: Hierarchy and list of documents forming part of the contract
5. Contractor's Obligations: General and specific obligations of the Contractor, including workmanship standards
6. Employer's Obligations: General and specific obligations of the Employer, including site access and permits
7. Contract Sum and Payment: Price, payment terms, variations, and payment procedures
8. Time and Progress: Commencement, completion dates, extensions of time, and delay damages
9. Quality and Defects: Quality standards, testing, inspection, and defects liability period
10. Variations: Procedures for changes to works, valuation, and time implications
11. Insurance and Indemnities: Required insurance coverage and indemnification obligations
12. Force Majeure: Definition of force majeure events and consequences
13. Suspension and Termination: Rights and procedures for suspension and termination
14. Dispute Resolution: Procedures for dispute resolution including mediation and arbitration
15. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects
2. Environmental Protection: Specific environmental obligations, required for projects with significant environmental impact
3. Local Content Requirements: Provisions for local content and labor requirements, used when required by regulations or project specifications
4. Advance Payment: Terms for advance payment and recovery, used when advance payments are agreed
5. Price Adjustment: Formulae and procedures for price adjustment, used for long-term projects
6. Interface Management: Procedures for managing interfaces with other contractors, used for complex projects with multiple contractors
7. Technology Transfer: Requirements for technology transfer or training, used when specified by the Employer
8. Anti-Corruption: Specific anti-corruption provisions, used for public projects or when required by Employer
1. Schedule 1 - Contract Details: Key project information, contract sum, dates, and parties' details
2. Schedule 2 - Scope of Works: Detailed description of works to be performed
3. Schedule 3 - Technical Specifications: Detailed technical requirements and standards
4. Schedule 4 - Bill of Quantities: Itemized quantities and rates for the works
5. Schedule 5 - Programme: Project timeline, milestones, and critical path
6. Schedule 6 - Site Information: Site details, conditions, and access arrangements
7. Schedule 7 - Forms of Securities: Templates for performance security and other guarantees
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and minimum coverage
9. Schedule 9 - Payment Schedule: Payment milestones and procedures
10. Schedule 10 - Health and Safety Requirements: Specific health and safety obligations and procedures
11. Appendix A - Drawings: Contract drawings and specifications
12. Appendix B - Permits and Licenses: Copies of relevant permits and licenses
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