1. Overview
Valuation: Residential properties approximately IDR 15,000,000 – 35,000,000, depending on the house area.
2. Default Included Items (Scope of Work)
When signing the Kontrak Kerja (Construction Contract), the following items should have been included in the total price:
⑴、Pre-site Survey (Survey & Analisa Struktur)Includes using a theodolite to measure tilt, preliminary soil investigation, and reinforcement design.
⑵、Core Construction (Pekerjaan Utama)Foundation reinforcement, rectification, and temporary protection.
⑶、Real-time Monitoring (Monitoring Masa Konstruksi)Real-time monitoring of settlement and inclination during construction. Indonesian formal companies regard it as a standard operating procedure (SOP) and should not incur additional charges.
⑷、Restoration & Cleaning:
Field Cleaning: Removal of waste materials and slurry generated during construction.
Crack Repair: Repairing wall and ground cracks caused by rectification work (base coating application).
⑸、Administration & Taxes (Pajak & Biaya Admin): A formal company quote should specify whether it includes VAT/PPN (11%).
⑹、Internal Acceptance (Serah Terima Pekerjaan): The contractor submits a completion report (Laporan Selesai Pekerjaan), and jointly verifies whether the inclination has returned to the safe range (Tolerance limits).
3. Clearly state items not included and those requiring additional payment
In the context of Indonesia, the following projects are independent:
⑴、Third-party Authorized Appraisal (Audit Struktur Independen): If it involves property transactions or industrial use, it is necessary to hire an expert holding an IPTB (Professional Practice License) to issue an appraisal report.
Valuation: Residential properties approximately IDR 15,000,000 – 35,000,000, depending on the size of the house.
⑵、Government Approval Fees (Legalitas PBG/SLF): If there are significant changes to the house structure, updating the PBG (formerly IMB building permit) or applying for an SLF (Certificate of Habitability) will require additional official fees and agency service charges.
⑶、Unforeseen Geological Factors (Force Majeure/Extreme Soil Conditions)Indonesia is prone to earthquakes and has soft soil foundations. If deep peat layers (Gambut) or undiscovered underground water inflows are encountered during construction, it may trigger an Addendum.
IV. Special “Pitfall Avoidance” Reminders for the Indonesian Market
⑴、Beware of the “Missing Drawings” Risk: Many private residences lack original as-built drawings. If contractors use this as an excuse to increase prices during construction, the contract should specify in advance that “surveying and drawing costs are included.”
⑵、Clarify Warranty Terms (Masa Pemeliharaan): Rectification projects typically have a 3 to 6-month observation period (Retention Period). The contract should retain 5% – 10% of the final payment, to be paid only after the observation period ends and no secondary settlement occurs.
⑶、Neighborhood Coordination Fee (Koordinasi Lingkungan): Construction noise or vibrations may lead to neighborhood complaints. The contract should clearly specify who is responsible for community coordination costs (typically, the owner handles relations while the contractor provides technical support).
⑷、Legal Validity: Ensure the contract is signed with a Materai 10,000 (Indonesian stamp duty) to give it evidential weight in legal disputes.
Five、Conclusion
Monitoring and self-inspection during construction are standard free services; third-party assessments and government compliance procedures are additional charges. It is recommended to clearly state in the contract “Harga sudah termasuk pembersihan dan perbaikan kerusakan akibat konstruksi” (The price already includes post-construction cleanup and damage repairs) to prevent future disputes.
