How do I check and hire a builder in Bali, and what should the contract and payment schedule cover?

This is information, not legal advice. It summarises the regulation texts listed under sources, as read on 2026-10-22. Have a lawyer read the contract before you sign it, and before you pay a deposit.

1. Check the business is registered

• NIB. Every business licensed through OSS has an NIB (Nomor Induk Berusaha), its registration number and business identity (oss.go.id). Ask for it, and for the company’s legal name, and check that the name on the contract matches.
• SBU (Sertifikat Badan Usaha). Every business that does construction work must hold a construction business certificate, issued through certification and registration by the central government (UU 2/2017 Art. 30, as amended by UU 6/2023).
• Check it yourself. The LPJK website, run under the Ministry of Public Works, has a search for construction businesses (Pencarian Badan Usaha) and for certified construction workers (lpjk.pu.go.id). Search by company name or NIB, and check the certificate is current and covers building work.

Where a builder’s listing on this site shows a licence, the “check it yourself” link goes to the register it came from.

2. Check the permits are in the plan

Construction is carried out after the PBG (building approval) is obtained, and the owner applies for it before construction starts (UU 28/2002 Art. 36A as amended by UU 6/2023; PP 16/2021 Art. 253(4)). Before the building is used, the owner needs an SLF, which rests on a statement of fitness from the construction supervisor (PP 16/2021 Art. 272 and 274). Agree in writing who handles each step. See Building permits: PBG and SLF.

3. The contract

Article 47(1) of the Construction Services Law (UU 2/2017) says a construction contract must, at a minimum, cover:

Item	What it should say
The parties	Clear identity of both parties
The work	Scope, contract value, unit prices or lump sum, and the time limit for completion
Liability period	The construction period and the maintenance period the contractor is responsible for
Rights and duties	Your right to the finished work; the contractor’s right to information and payment
Workers	The duty to employ certified construction workers
Payment	How and when you pay, including any guarantee of payment
Default	Who is liable if a party does not do what was agreed
Disputes	How disagreements are settled, and the choice of dispute forum
Termination	When and how the contract can be ended
Force majeure	Events outside both parties’ control
Building failure	Each party’s duties if the building fails, and for how long the contractor is liable
Worker protection	Safety, health and social security duties
Third parties	Duties if an event harms other people
Environment	Environmental duties
Risk cover	Guarantees for risks and legal liability to others

If the contract a builder offers leaves any of these out, ask why before you sign.

4. The payment schedule

The law requires the contract to state how payment is made (Art. 47(1)(f)); it does not set a schedule. What to look for:

• Payments tied to physical progress you can inspect (foundations, structure, roof, finishes), not to calendar dates. Several builders listed on this site publish schedules of this kind; see the “payment schedule” answer on each builder’s listing.
• A retention or maintenance period after handover, during which defects are fixed. The contract must state the maintenance period (Art. 47(1)(c)).
• An independent check of each stage before you pay, by a project manager or quantity surveyor working for you, not for the builder.

Warning signs

• No NIB, or a company name on the contract that differs from the one you checked.
• No SBU found on the LPJK search for the company.
• A proposal to start work before the PBG is issued.
• A contract without a maintenance period, a building-failure clause or a payment schedule.
• Pressure to pay for stages that have not been built.

Who does this work

• Builders and contractors carry out the work.
• Project managers and quantity surveyors check progress and payments for the owner.
• Permit agents handle the PBG and SLF.
• Property lawyers review the contract.