IMPLEMENTATION OF FIDIC RED BOOK TO MITIGATE DISPUTES IN SUTT 150 kV MALOY-KOBEXINDO

Abstract

Construction contracts based on unit price systems often face challenges when actual work volumes deviate from initial estimates. This study explores the application of specific FIDIC Red Book conditions to mitigate disputes arising from changes in work volume, using the case study of the SUTT 150 kV Maloy-Kobexindo project. The findings highlight the importance of clear contract provisions, particularly those related to variation orders and unbalanced unit prices, in preventing disputes and improving project efficiency. The study also recommends implementing effective dispute resolution mechanisms, such as renegotiation or mediation, to address unexpected changes and ensure that both contractors and clients maintain a fair and transparent working relationship. By emphasizing the value of FIDIC Red Book's flexible contract conditions, this research underscores the critical role these provisions play in improving overall project performance.