Contact

Four things you should be aware of when hiring a contractor company

Lawyer reviewing legal documents at a desk
About the author
Ni Luh Yunaelis, SH
Member of Indonesian Advocates Association (PERADI). The alumnae of the Faculty of Law, Udayana University, Bali, previously joined Vidhi Law Office as a Junior Advocate (2014-2016). She started her first carrier as an Advocate Assistant at Austrindo Law Office (ALO) in 2010. During her time at the lawyer’s office, Yuna learned directly from Austrindo’s founder , a lawyer who was an Australian citizen. Not only learning aspects of Indonesian law, but also the work ethic that is adopted at work.

Four things you should be aware of when hiring a contractor company

1. The company itself

Make sure you get (copies of) their company documents (company establishment, license, etc). Visit their office and at least one of their ongoing or previous projects. And you can also do simple research on the internet about their company and their contact (director).

2. Sign a proper agreement with the company directors

When I say proper, it means you must include a timeline, payment scheme, fines or consequences in case of default and the choice of law of either party.

3. Payment terms

Never agree to pay fifty percent upfront. An established construction company will gladly accept a twenty percent deposit and (even) return the deposit according to progress.

4. Precise drawing

Please complete your project with exact drawings with detailed specifications, this will help you and your construction company to be on the same page for project quality.

Feel free to hire an independent third party

It could be a lawyer to help you make sure that the terms in your agreement are sufficient and or an architect/quantity surveyor to measure the progress of your project before you make any further payments.

 

Share this

More Articles

Buying property in Indonesia

Law Firm Bali Guide: The Expat’s Guide to Buying Property in Indonesia Safely

Buying property in Indonesia can be rewarding, but it requires careful planning. Many expatriates assume the rules are similar to their home country. They are not. Indonesian land law is unique and tightly regulated. If you are searching for law firm Bali support to guide you through property ownership, this guide explains what you must understand before signing any agreement. It covers ownership rules, land titles, due diligence, and the practical steps to protect your investment.
Bali Law Firm Acquisition Agreement Review Lessons

Legal 101: Things you learn from the Korean Drama “Start-Up”

Korean drama series often reflect real business risks. In the drama “Start-Up,” young entrepreneurs build a technology company with the support of an accelerator. What appears to be a success story quickly becomes a legal warning about acquisition agreements and corporate control. For startups and business owners, the key lesson is clear: never sign an acquisition agreement without proper legal review.
Lawyer providing legal consultation

What Do Corporate Lawyers Do

Corporate lawyers play a critical role in guiding businesses through legal compliance, structuring, contracts, and risk management. This article explains what corporate lawyers do, how they support company formation, transactions, and dispute prevention, and why professional legal guidance is essential for businesses operating in Indonesia.
Scroll to Top