The Importance of Construction Services in National Development

Oct 13, 2025 by vinooalluri.com 87 views

Introduction

In the context of national development, construction services play a very important role in producing physical buildings and contributing to the development of infrastructure that supports the growth of various sectors. To carry out development projects, the employer usually cooperates with the contractor through a cutting agreement. However, often the agreement made does not provide balance and justice, especially for the contractor. This article aims to discuss the protection of the contractor in the squand agreement, highlighting the importance of a fair and transparent auction process, the role of a notary, and the implementation of applicable regulations.

The Importance of Construction Services in National Development

Construction services play a vital role in national development, contributing to the growth of various sectors. The development of infrastructure, such as roads, bridges, and buildings, is essential for the country's economic growth and stability. However, the implementation of construction projects often faces challenges, including delays, cost overruns, and disputes between employers and contractors. To ensure the success of these projects, it is essential to have a fair and transparent auction process, where the rights and obligations of both parties are protected.

The Problem of Unfair Agreements

The study conducted in the city of Medan and its surroundings revealed that the agreement between Pertamina as an employer and PT. Barata Indonesia as a contractor often does not side with the contractor. This is caused by the existence of clauses in agreements that are more beneficial for the employer. The study involved 15 respondents from various relevant agencies and used literature study methods, document review, and direct interviews to collect data. The results showed that the implementation of this cutting agreement was not fully in accordance with Law No. 18 of 1999 concerning Construction Services.

The Role of Law in the Agreement

The principle of law in the agreement, such as the freedom of contract contained in Article 1338 of the Civil Code, as well as the principle of consensualism in Article 1320 of the Civil Code, is often ignored. This results in a vulnerable contractor against default, which generally occurs due to delays in project completion. To ensure a fair and transparent auction, it is essential to have a notary role as an independent committee in the auction process. In addition, a letter of contracting agreement should be prepared in the form of a notarial deed that provides legal certainty.

The Importance of Notary in the Auction Process

A notary plays a crucial role in the auction process, ensuring that the agreement is fair and transparent. The notary's role is to verify the authenticity of the agreement and ensure that both parties understand their rights and obligations. In addition, the notary can provide guidance on the implementation of the agreement and help resolve disputes that may arise during the project.

The Implementation of Applicable Regulations

To ensure the protection of the contractor, it is essential to implement applicable regulations, including Law No. 18 of 1999 concerning Construction Services. The law has been clearly regulated regarding the resolution of disputes and rights and obligations of each party. Thus, it is hoped that the employer and contractor can run better and more fairly, and create a healthy investment climate in the world of construction services in Indonesia.

Conclusion

In conclusion, the protection of the contractor in the squand agreement is essential for the success of construction projects. A fair and transparent auction process, the role of a notary, and the implementation of applicable regulations are crucial in ensuring the protection of the contractor. By understanding the rights and obligations in the Force Agreement, as well as the application of applicable regulations, the protection of the contractor will be more optimal. This is not only beneficial for the contractor itself, but will also support the stability and sustainability of infrastructure development throughout Indonesia.

Recommendations

Based on the study, the following recommendations are made:

The employer and contractor should cooperate to ensure a fair and transparent auction process.
A notary should be involved in the auction process to verify the authenticity of the agreement and ensure that both parties understand their rights and obligations.
The employer and contractor should implement applicable regulations, including Law No. 18 of 1999 concerning Construction Services.
The government should provide guidance and support to ensure the implementation of applicable regulations and the protection of the contractor.

Future Research Directions

Future research should focus on the following areas:

The impact of unfair agreements on the contractor and the project.
The role of notaries in the auction process and their impact on the protection of the contractor.
The implementation of applicable regulations and their impact on the protection of the contractor.
The development of a framework for fair and transparent auction processes.

By understanding the importance of the protection of the contractor in the squand agreement, we can ensure the success of construction projects and support the stability and sustainability of infrastructure development throughout Indonesia.

Q: What is the squand agreement?

A: The squand agreement is a type of agreement between an employer and a contractor in the construction industry. It is a contract that outlines the terms and conditions of the project, including the scope of work, payment terms, and timelines.

Q: Why is the protection of the contractor important?

A: The protection of the contractor is essential to ensure that they are treated fairly and justly in the agreement. This includes ensuring that they receive fair compensation for their work, that they are not subjected to unfair clauses or terms, and that their rights and obligations are clearly defined.

Q: What are some common problems faced by contractors in the squand agreement?

A: Some common problems faced by contractors in the squand agreement include:

Unfair clauses or terms that favor the employer
Delays in payment or non-payment
Changes to the scope of work without consent
Lack of clear communication or transparency
Disputes over rights and obligations

Q: How can a notary help in the squand agreement?

A: A notary can help in the squand agreement by:

Verifying the authenticity of the agreement
Ensuring that both parties understand their rights and obligations
Providing guidance on the implementation of the agreement
Helping to resolve disputes that may arise during the project

Q: What are some key laws and regulations that protect the contractor?

A: Some key laws and regulations that protect the contractor include:

Law No. 18 of 1999 concerning Construction Services
The Civil Code (Article 1338 and Article 1320)
The Notary Law (Article 1-10)

Q: How can the employer and contractor work together to ensure a fair and transparent auction process?

A: The employer and contractor can work together to ensure a fair and transparent auction process by:

Cooperating to ensure that the agreement is fair and transparent
Involving a notary in the auction process
Implementing applicable regulations, including Law No. 18 of 1999 concerning Construction Services
Providing clear communication and transparency throughout the project

Q: What are some future research directions in the area of protection of the contractor in the squand agreement?

A: Some future research directions in the area of protection of the contractor in the squand agreement include:

The impact of unfair agreements on the contractor and the project
The role of notaries in the auction process and their impact on the protection of the contractor
The implementation of applicable regulations and their impact on the protection of the contractor
The development of a framework for fair and transparent auction processes