CONSTRUCTION DISPUTE RESOLUTION THROUGH DISPUTE BOARDS (Case Study: Power Plant Project in Indonesia)

Abstract

Disputes related to construction projects are inevitable given the complexity and high value of such projects, which often result in financial losses for the parties involved. Construction disputes encompass cost disputes, time disputes, scope of work disputes, combined disputes involving changes in cost, time, and scope of work, as well as administrative disputes. Dispute resolution is often pursued through legal channels or court processes, which are typically time-consuming and costly. Dispute Boards have emerged as an alternative mechanism to resolve construction disputes quickly and effectively before escalating to court or arbitration. This study aims to explore the mechanisms and effectiveness of dispute resolution through Dispute Boards. A mixed-methods approach was employed, including surveys, interviews, and case study analyses. The findings indicate that resolving disputes through Dispute Boards can reduce dispute duration, improve cost efficiency, and maintain good relationships between the parties involved. Recommendations include raising awareness of the benefits of Dispute Boards and integrating Dispute Board clauses into construction contracts.