The Effectiveness of Dispute Resolution in Construction Services Outside of the Court
8 Pages Posted: 15 Nov 2019 Last revised: 9 Apr 2020
Date Written: August 29, 2019
Construction service is a sector which is quite vulnerable to dispute. Stated on Law Number 2 of 2017 on Construction Services Article 88 paragraph 2, namely in terms of deliberations if the parties cannot reach an agreement, they must go through the construction work contract. Government Regulation No. 29 of 2000 on Provision of Construction Services, Article 49 states in the implementation of dispute resolution in construction services outside of the court can proceed through the third party in the form of mediation, conciliation, arbitration through arbitration institution or ad-hoc arbitration. The method used in this research was normative juridical research derived from the literature study. This type of research, by its nature, is descriptive-analytical research. The interviewees included BANI (BANI arbitration centre), BADAPSKI (The Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction service), and the dispute board. The data analysis method was the statute approach. The results showed that according to study conducted by Sondra Dwiputra Paiding Lewa and Harijanto Setiawan, arbitration and APS occupied the top 4 ranking position in the dispute settlement of construction services compared to solving it through the court. It meant that ADR and arbitrations were more effective at resolving construction services disputes than solving it through courts. Unfortunately, in provinces and counties/cities, there were a lot of construction services contracts that proceeded through the courts to resolve service disputes Construction mainly for projects using the budget of regional income and expenditure.
Keywords: [comma separated]ADR, Construction, Service.
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