EVALUATION OF CONSTRUCTION SUBSTATION CONTRACT DISPUTES WITH REFERENCE TO FIDIC CLAUSES

Abstract

Substation construction projects are a vital component in the development of power infrastructure. The complexity of the work, involvement of multiple parties, and extended project durations often lead to potential contractual disputes between employers and contractors. The FIDIC (Fédération Internationale des Ingénieurs-Conseils) contract clauses are widely adopted in strategic projects as an international standard for contract management. This study aims to evaluate the types of disputes arising in substation construction projects under FIDIC-based contracts and to analyze the effectiveness of dispute resolution mechanisms outlined in the relevant clauses. A qualitative research method was used, employing a case study approach on several substation projects in Indonesia. Data were collected through document analysis, interviews with construction practitioners, and legal analysis of relevant FIDIC provisions. The findings indicate that common disputes include project delays, differing interpretations of technical specifications, and payment claims. FIDIC clauses, particularly those related to dispute resolution (Sub-Clause 20), are considered effective in providing a resolution framework, although practical implementation still requires adjustment to national laws and institutional capacities. This study offers strategic recommendations for mitigating contractual risks and improving FIDIC-based contract governance in the power sector.