JURIDICAL ANALYSIS OF DISPUTE SETTLEMENT OF THE CONSTRUCTION CONTRACT THROUGH ARBITRATION TO REALIZE PROTECTION AND LEGAL CERTAINTY

Law

Contracts for the use of construction services are inseparable from legal issues when the parties make a breach of an agreed agreement, the disputes that occur require a solution to resolve them, because these legal disputes have an impact on time, cost, and hinder the contribution of the construction sector in economic growth. This study aims to find out what are the obstacles in resolving construction service disputes, how to resolve the legal consequences of construction disputes and how to resolve disputes through arbitration. Besides that, this research also uses empirical juridical research methods using primary data, secondary data, namely primary legal materials and secondary legal materials and tertiary data. The study results show the background of the problem, namely construction disputes that can resolve construction contract problems through arbitration legal remedies in accordance with the rules in Indonesia in Article 88 of Law Number 2 of 2017 concerning Construction Services including: Mediation, Conciliation and Arbitration. The comparison between adjudication and arbitration in its function as a construction work contract dispute resolution can be described simply, that adjudication is a dispute resolution mechanism that has similarities in characteristics to arbitration. However, the adjudication mechanism is actually simpler than arbitration, then if the dispute resolution is not stated in the construction work contract, then the parties with written approval will regulate the dispute resolution procedure chosen.

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