DISPUTE BOARD AS AN ALTERNATIVE FOR CONSTRUCTION DISPUTE SETTLEMENT IN SUTT DEVELOPMENT CONTRACTS AT PT PLN (PERSERO)

Abstract

Transmission construction projects have very complex problems and difficulties due to the very dynamic type of work combining various types of interrelated engineering and non-engineering work, this results in frequent disputes where the applicable Contract or the Agreement itself does not have a clear way to resolve the problem and makes the parties firmly defend their respective arguments. This raises more complicated problems and is often resolved in a simple way which can actually cause conflict in the future, even causing legal problems when an audit occurs. Through the construction services law no. 2 of 2017 article 88 it has been stated that alternative dispute resolution can be through the formation of a dispute council. This needs to be changed in the type of transmission construction contract within the PT PLN (Persero) environment considering that Disputes are difficult to avoid when they have a direct impact on the project. Changes need to be made immediately to every transmission construction contract within the PT PLN (Persero) environment.