As a developing country, Indonesia has actively pursued various development activities. Infrastructure development has continued to grow since the 1998 economic crisis, particularly in the past 20 years. One of the major challenges in construction projects in Indonesia is the occurrence of construction contract disputes between clients and contractors. Disagreements, conflicting interests, and concerns over potential losses often lead to such problems or disputes. As construction activities increase, so too do construction contract disputes. This research employed a literature review method by examining existing literature to understand the concepts, theories, and previous findings related to the research problem. Following Articles 52 and 53 of Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution, arbitration institutions can issue binding opinions on matters related to construction contracts. The binding opinion issued by the Indonesian National Arbitration Board (BANI) can resolve disputes and prevent construction contract disputes.
