In this #BILLawFact, our Partner Eddy Isworo and Associate Samuel Joviandre highlight the mandatory inclusion of a Building Failure clause in Construction Work Contracts under Law No. 2 of 2017 and Government Regulation No. 22 of 2020.
A Building Failure—whether a collapse or non-functioning after handover—creates strict liability for contractors for up to ten years. Without a clear clause, parties face legal uncertainty, costly disputes, and potential sanctions.
Follow this #BILLawFact to understand more about essential legal obligations in Indonesia’s construction sector.
For legal advice on construction law compliance, contact us at [email protected]
The author acknowledges the contribution of our Apprentice, Patrick Martin, in preparing this BILLawFact