There are three common ways to pay builders in Indonesia: full contract (materials and labour paid per package), labour only contract (labour per m² or per package, owner supplies materials), and daily labour (paid per working day). The choice decides who carries the risk if work drags or materials are wasted.
Quick comparison
| Contract | Daily | |
|---|---|---|
| Cost | Fixed up front; the contractor builds in a buffer | Follows the days worked; can overrun |
| Speed | Usually faster because of the target | Depends on supervision |
| Design changes | Charged as extras | Easy, paid by the day |
| Quality control | Watch the spec so it is not lowered | Owner picks materials and can replace builders |
| Suits | New houses, big renovations, clear scope | Small repairs, detailed work, unclear scope |
Worked example
A 20 m² kitchen and bathroom renovation. A labour only contract is quoted at Rp1.2 m per m², so Rp24 m in labour. On daily rates, one builder and one helper at about Rp180 k and Rp120 k a day (Rp300 k a day) need 70 working days to cost the same Rp21 m. If the work drags to 90 days, daily labour costs Rp27 m and passes the contract price. Daily labour is only cheaper when the work is supervised and the days are controlled.
Mixing both
Many owners and contractors use contract work for the structure (foundation, columns, slab) where the scope is clear, then daily labour for finishing that needs care and changes often. On a housing project like our example (Rp1 billion contract, 32 weeks, block C5), foremen on contract per work package with weekly measurement is the most common pattern.
What to put in the SPK
- Scope of work and reference drawings.
- Material spec and brands, especially for full contracts.
- Price, how work is measured and the payment schedule (for example weekly by progress).
- A small retention until the work is accepted.
- How variations are priced.
- Completion date and what happens if it is late.
Common mistakes
- Paying a large advance on a contract before any progress.
- Daily labour without daily attendance and output records.
- A verbal SPK, so scope differences only appear at the end.
- Not recording extra work, so the final bill is disputed.
The full guide is in How to build a construction cost report that catches overruns early. It has a free template (Excel or Google Sheets) and a checker that reads your own workbook.
Ready to use the Komander agents on your projects?
When your workbook is complete, apply for a pilot: we help connect your project data to the Finance, Cost and Scheduler agents and review the first reports with you.
Send to melwani@komander.ai. Your workbook check result is included when there is one; the workbook itself is not sent.
Common questions
Which is cheaper, contract or daily labour?
It depends on scope and supervision. Contract work gives price certainty; daily labour can be cheaper for small supervised jobs but overruns easily.
What is a labour only contract rate per m² in 2026?
Public sources put it at about Rp0.8–1.8 m per m² for labour, depending on region and difficulty.
What is a full contract?
The contractor supplies materials and labour for one price, and the owner receives a finished house.