AGREEMENT with CONTRACTOR

for

THIS AGREEMENT is made on __________, 20 __, by and between

___________________, (Contractor), and ________________________, (Owner).
WITNESSETH, that the Contractor and the Owner for the consideration
named agree as follows:

ARTICLE 1. DESCRIPTION OF THE CONTRACT

1.1 This Agreement is for execution of Works comprising:

S.No

Type of Works

i)
ii)
iii)
iv)
v)

Total Area
(Sq.m)

No of
Floors

(a) Type of
Works:

New Construction:
Extension of existing Building:
Rehabilitation of Building:

(b) Brief Description of the Project:

ARTICLE 2. CONTRACT AMOUNT AND MODE OF PAYMENT

2.1 In consideration of the faithful performance of this Agreement by

the Contractor, the Employer shall pay to the Contractor the total sum of
[amount in gures and words]

2.2 The Contract Amount shall be a xed and lump sum and therefore
shall not be subject to any uctuation or variation.

2.3 The Contractor shall notify the Employer promptly upon completion
of any part of the Project in respect of which any payment is claimed
pursuant to this contract. Any Invoice presented by the Contractor for
payment shall be supported by the following:
(a) Details of the executed Works as per the Bill of Quantities and prices
approved in the contract.
(b) Approval of the Consultant for quantities, qualities and nancial
claims; (c) Details of the Contractors bank account.

2.4 The clearance of the Consultant and payment of Invoice shall not
relieve the Contractor from his obligation to do any missing Works or
rectify any Works or items in accordance with this contract. The
Contractors Invoice shall be paid by the Employer within 30 working days
from the date of receipt and acceptance of the Employer. The Contractor
shall not hold the Employer responsible for any payment delays that are
beyond his control.

2.5 Retention: An amount of 5% shall be deducted from the Invoices

submitted by the Contractor as retention money to be utilized in case of
default or defective materials, equipment, supplies, work or service not
rectied by the Contractor. The retention money, less any sums properly
charged against it by the Employer, shall be paid over to the Contractor
at the end of the defects liability period and issuance of the Final HandOver Certicate.

2.6 Advance Payment: The Contractor may claim an advance payment

not exceeding 20% of the value of the Contract, provided that it is covered
by an unconditional and irrevocable bank guarantee from a rst-class
bank. Such guarantee should be valid for the entire contract

implementation period & will be recoverable in equal installment in the

succeeding payment Valuation Certicates.

2.7 Performance Bond:

(a) the Contractor shall provide an unconditional and irrevocable

guarantee (Performance Bond) that should cover 10% of the value of the
contract from a rst class bank or reputable insurance company. Such
guarantee should be valid until the completion of Work.
(b) In case of diculty in providing a Performance Bond, the Employer
may allow the replacement of such guarantee by an additional deduction
of 5% from the Contractors submitted Invoices. These deductions are
repaid to the Contractor on completion of the Project.
(c) The Performance Bond shall be conscated if the Contractor,
unilaterally, withdraws from the execution of the contract, fall behind the
agreed work program, or deviates from the specications set forth
without rst written consent of the Employer.

ARTICLE 3. IMPLEMENTATION PERIOD

The owner shall pay the Contractor the sum of
_____________________________ rupiah (Rp) for the material and labor to be
performed under the Contract, subject to any additions and/or deductions
made pursuant to authorized change orders.

ARTICLE 4. PAYMENTS
Payments of the Contract price shall be paid in the following manner :
ARTICLE 5. GENERAL PROVISIONS
1. All work shall be completed in a workmanship like manner and in
compliance with all building codes and other applicable laws.
2. To the extent required by law all work shall be performed by individuals
duly licensed and authorized by law to perform said work.
3. Contractor may at its discretion engage subcontractors to perform work
hereunder, provided Contractor shall fully pay said subcontractor and in
all instances remain responsible for the proper completion of this
Contract.
4. Contractor shall furnish Owner appropriate releases or waivers of lien
for all work performed or materials provided at each time periodic
payment is made hereunder.
5. All change orders shall be in writing and signed by both Owner and
Contractor.
6. Contractor warrants it is adequately insured for injury to its employees
and any others incurring loss or injury as a result of the acts of Contractor
or its employees and subcontractors.
7. Contractor shall at its own expense obtain all permits necessary for the
work to be performed.
8. Contractor agrees to remove all debris and leave the premises in broom
clean condition.

9. In the event Owner shall fail to pay any periodic or installment payment
due hereunder, Contractor may cease work without breach pending
payment or resolution of any dispute.
10. All disputes hereunder shall be resolved by binding arbitration in
accordance with the rules of the American Arbitration Association.
11. Contractor shall not be liable for any delay due to circumstances
beyond its control including strikes, casualty or general unavailability of
materials.
12. Contractor warrants all work for a period of __________ months
following completion.
Signed this ____day of________________, 20____.
______________________________
Contractor

______________________________
Owner