2026-10-23T18:23:57

Renovation Contract with a Contractor: Checklist from Article 47 of Law 2/2017

A renovation contract with a contractor is more than a price note. Article 46 of Law No. 2 of 2017 on Construction Services requires the working relationship between user and provider to be set out in a contract, and Article 47 lists 16 minimum items, from the parties' identities to the dispute-resolution option. This article turns those articles into a builder contract checklist and a guide on how to choose a renovation contractor, based on the law text we read on 23 October 2026. It is general information, not legal advice.

Renovation contract with a contractor: 16 minimum items and how to choose a renovation contractor

Contract item	What the law requires	Basis	How to apply it (homeX analysis)	Source
The parties	Parties' identities stated clearly	Article 47(1)(a)	Ask for the contractor's ID/NIB or business licence and a fixed address	UU No. 2 Tahun 2017 (JDIH BPK)
Scope of work	Scope, contract value, unit prices or lump sum, and time limit described clearly and in detail	Article 47(1)(b)	Attach an itemised RAB, drawings and material brands; use homeX reference prices to check	UU No. 2 Tahun 2017 (JDIH BPK)
Liability period	Implementation and maintenance period for which the provider is responsible	Article 47(1)(c)	State start date, completion date and the defect-fixing period after handover	UU No. 2 Tahun 2017 (JDIH BPK)
Equal rights and duties	User's right to results per contract; provider's right to information and payment	Article 47(1)(d)	Decide who buys materials, who handles permits and site access	UU No. 2 Tahun 2017 (JDIH BPK)
Certified workers	Duty to employ certified construction workers; every construction worker must hold a Work Competency Certificate	Article 47(1)(e); Article 70(1)–(2)	Ask for the worker list and certificates; see the homeX builder certification article	UU No. 2 Tahun 2017 (JDIH BPK)
Payment method	User's payment duty, including payment guarantee	Article 47(1)(f)	Pay in stages against verified progress, not in full upfront	UU No. 2 Tahun 2017 (JDIH BPK)
Default, termination, force majeure	Responsibility if duties are unmet; termination terms; events beyond the parties' control	Article 47(1)(g), (i), (j)	Set late-completion penalties and stop conditions if work does not conform	UU No. 2 Tahun 2017 (JDIH BPK)
Dispute resolution	Consultation first; if it fails: mediation, conciliation, arbitration; parties may form a dispute board	Article 47(1)(h), (p); Article 88	Write your chosen steps into the contract; if blank, Article 88(3) requires a written agreement	UU No. 2 Tahun 2017 (JDIH BPK)
Building failure	Provider is liable for the design life of the works; if over 10 years, at most 10 years from final handover; the period must be written in the contract	Article 47(1)(k); Article 65	For small renovations, state the structural warranty period (e.g. slab, roof) explicitly	UU No. 2 Tahun 2017 (JDIH BPK)
Safety, third parties, environment, risk	Safety and social-security duties; third-party protection; environmental aspects; guarantee for risk and legal liability	Article 47(1)(l), (m), (n), (o)	Decide who bears damage to a neighbour's house or worker accidents	UU No. 2 Tahun 2017 (JDIH BPK)
Provider's business fit	Choose by checking: business field matches the scope, qualification matches the workload, track record, and experience with similar products	Article 43(1)	Ask for photos and addresses of 2–3 similar projects you can visit	UU No. 2 Tahun 2017 (JDIH BPK)
Individual vs company	Individual businesses and small companies may only take low-risk, simple-technology, low-cost work; individuals need a Tanda Daftar Usaha Perseorangan, companies a business licence	Articles 21; 26–27	A major structural renovation (adding a floor) should not go to a worker without a business licence	UU No. 2 Tahun 2017 (JDIH BPK)

Source: the text of Law No. 2 of 2017 on Construction Services (official PDF copy on JDIH BPK) read directly on 23 October 2026, Articles 21, 26–27, 43, 46–48, 65, 70 and 88. Data gaps: we have not read the implementing regulations (Government Regulation 14/2021 and PUPR ministerial regulations), so penalty details, performance guarantees and business classification are not covered; no standard clause samples; application to small private home renovations may differ and should be checked with a lawyer. Not legal advice.

Order for choosing a renovation contractor (homeX analysis)

homeX analysis, not the content of the law: (1) collect 3 quotes with the same itemised RAB; (2) check the business field, licence and 2–3 similar projects (Article 43); (3) compare material prices with public price lists, for example cost per m2 and the bathroom renovation cost in the homeX articles; (4) write the schedule, payment stages, warranty period and dispute steps into the contract; (5) ask for a list of certified workers.

Daily wage or fixed-price: which is safer?

The law names the contract value as unit prices or a lump sum; both are valid. A fixed price gives cost certainty if scope and specifications are written; daily wages suit small repairs with unclear scope. See the daily wage rates in the homeX article for comparison, then write the chosen method into the contract.

Buyer tips

Ask for a written contract with the RAB, drawings and material specifications attached.
Check the business licence or TDUP, worker certificates and 2–3 similar projects.
Pay in stages against progress; hold back part until the defect period ends.
Write the warranty period, late penalties and dispute-resolution steps.

Request a renovation contract with a contractor quote for your project

homeX can compare several brands at once and prepare a written quote for projects, renovations or shop stock. Send your needs (brand, size, quantity, location) via WhatsApp +62 821 1818 998, or visit the homeX showroom: Priskilla Tower, 6th floor, Jl. Atang Sanjaya No.21, Benda, Kota Tangerang, Banten 15125. Visit the homeX Showroom.

Disclaimer: prices change without notice and differ by store, city, pack size, grade and promotion. Data as of 23 October 2026; always confirm with the seller before buying.

FAQ

Must a home renovation use a written contract? Article 46 of Law 2/2017 states that the working relationship between user and provider must be set out in a construction work contract. For small individual workers practice may differ; it is still wise to write the agreement down.

How long is a contractor liable for building failure? For the design life of the works; if over 10 years, at most 10 years from final handover (Article 65), and the period must be written in the contract.

What must a renovation contract contain? Article 47 lists 16 minimum items: parties, scope and value, liability period, rights and duties, certified workers, payment, default, disputes, termination, force majeure, building failure, safety, third parties, environment, risk guarantee and dispute-resolution option.