ALTERNATIVE CONSTRUCTION DISPUTE RESOLUTION THROUGH DISPUTE RESOLUTION BOARD IN INDONESIA - STAGES AND LESSONS LEARNED

Abstrak

This research discusses the importance of construction dispute resolution mechanisms, particularly through the Dispute Board (DB), in preventing and resolving conflicts efficiently. Construction disputes often arise due to differences in perception of the scope of work, unclear technical specifications, late payment, and force majeure. The litigation process is often time-consuming, expensive, and inadequate as judges do not always have construction expertise. Alternative dispute resolution such as mediation, conciliation and arbitration have their own limitations, ranging from non-binding results to dissatisfaction with the arbitrator's decision. The Dispute Board, which has been implemented in international projects, offers a preventive and effective approach by involving an independent team established at the outset of the contract. The DB's decision, which can be provisional or final, enables dispute resolution without the need for litigation. This study uses a literature review method, referring to FIDIC standards, to evaluate the effectiveness of DB in the Indonesian context. The research found that the use of DB can improve time and cost efficiency, although its implementation still faces challenges, including a lack of certified human resources. The results of this study confirm the relevance of DB as a fairer, faster, and more flexible alternative to traditional dispute resolution methods.