It’s no surprise that travel restrictions have taken a heavy toll on Bali, a small island whose economy is almost entirely based on tourism. However, looking back decades, Bali has always been able to maintain its reputation as the world’s favorite island destination, regardless of what calamities wreaked havoc on Indonesia’s social and economic dynamic. In 2021, the Bali construction market will tell us the same story. Despite the devastating economic consequences of the Covid-19 pandemic, many villa construction projects have begun and, interestingly, have been commissioned by foreigners. It’s crucial to find a Bali construction company if you are a foreign investor considering investing in Bali’s tourism and hospitality sectors.
Bali construction company and section of work
The construction of a villa in Bali certainly requires a large amount of money. The bill of quantities is divided into sections for each section of the work, such as:
- Clearing the site and starting the project
- Foundations
- Structure
- Slabs for floors
- Walls
- Ceilings and roof
- Doors and windows
- Installation of Electrical Equipment
- Installation of Plumbing
- Ceramic tiling on the walls and floors
- Painting
- Drainage
- Provision of Water
Some Bali contractors usually specify the addition of:
- Fees for Architects
- Fees for Structural Engineers
- Tax on Construction
- Legal fees (IMB, contract fee, etc)
- Schedule of payments Bali contractor
Payment Schedules
Now comes the crucial part: we must establish a payment schedule. We begin by saying that we will give you so much to get you started. This provides funds for the contractor to pay for materials and start-up costs.
Next, we must determine how we will continue to pay as the project progresses. We must ensure that the contractor has enough funds to continue working. Keep in mind that the contractor has a profit margin in each phase of the project.
We can use the profit margin on the work they have already completed as a down payment on the cost of the next part. This means that after each payment, you and the Bali contractor are on the same page. You have the work completed, and they have made their profit.
Before any payment, the project is inspected, and payment is made based on the actual work completed. An engineer will be required to go through the bill of quantities and check each line item to determine the percentage of completion. This is added up to give you the total financial value of the completed construction.
In the sample file, there is a column second from the right with the percentage complete entered. Which is then calculated into a monetary value for the amount of work completed in the right-hand column. With this information, some common sense you can now ensure that you are not paying more than you should.
A good Bali construction company will be aware of all of this. They will provide you with a detailed bill of quantities and will respect your desire to have progress inspections performed before releasing funds. If you are aware that you are not an assertive person, be aware that the contractor may detect this and believe that he can exploit you. It may be best to find someone to represent you when it comes to making payments, but make sure they are someone you trust.
Adam Walker