The Position Of The Parties In The Contracting Contract For The Construction Of The Labuhan Batu Regency Government Project Construction

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The Position of the Parties in the Contracting Contract for the Construction of the Labuhan Batu Regency Government Project Construction

Introduction

In the implementation of physical development, service users usually entrust work to service providers through a contract known as a construction contract. This contract is regulated based on the Civil Code (KUH Civil Code), A.V 1941, Law No. 18 of 1999, Government Regulation No. 29 of 2000, Presidential Decree No. 80 of 2003, Presidential Decree No. 61 of 2004, and Presidential Regulation No. 32 of 2005. The construction contract is a crucial aspect of the project, as it outlines the terms and conditions of the agreement between the service user and the service provider. However, the implementation of the construction contract in Labuhan Batu Regency has been marred by several challenges, including the pre-contracting process, the position of the parties, and the causes and legal implications of contract violations.

The Pre-Contracting Process: A Crucial Aspect of the Construction Contract

The pre-contracting process is a critical phase in the implementation of the construction contract. This process includes prequalification and auction, which are essential in determining the ability of service providers to undertake the project. However, the research conducted in Labuhan Batu Regency revealed that the pre-contracting process has not been carried out properly. As a result, the ability of service providers is not revealed accurately, which can impact the quality of the work produced. This process is very crucial because the decision taken during this phase will determine the success of the project as a whole.

The pre-contracting process is a complex and time-consuming process that requires careful planning and execution. It involves the evaluation of service providers based on their technical, financial, and managerial capabilities. The service user must ensure that the pre-contracting process is transparent, fair, and competitive to ensure that the best service provider is selected for the project. However, the research conducted in Labuhan Batu Regency revealed that the pre-contracting process has been marred by several challenges, including the lack of transparency, fairness, and competitiveness.

The Imbalance of the Position of the Parties

In the contract, it appears that the position of the parties, especially the contractor, is unbalanced. Contractors are often in a weak position, especially when dealing with service users. This can result in the contractor being forced to accept unfair conditions. For example, the subcontractor is only responsible to the main contractor, so that every subcontractor action is considered as a overall contractor action, without any guarantee of protection for the subcontractor itself.

The imbalance of the position of the parties can result in several consequences, including the contractor being forced to accept unfair conditions, the contractor being responsible for the actions of the subcontractor, and the contractor being unable to protect its interests. This can lead to a situation where the contractor is not able to fulfill its obligations under the contract, which can result in the project being delayed or even abandoned.

Transfer of Contracts and Their Implications

In practice, there is a transfer of contract to other parties without the knowledge of the contractor. This clearly violates the principle of transparency and justice in the contract. This transfer can result in legal uncertainty and burden the contractor with the shoulder responsibility.

The transfer of contracts can result in several consequences, including the contractor being unaware of the changes to the contract, the contractor being unable to fulfill its obligations under the contract, and the contractor being responsible for the actions of the new contractor. This can lead to a situation where the contractor is not able to protect its interests, which can result in the project being delayed or even abandoned.

Injury to Promises and Factors Causes

In the project implementation, a promise injury often occurs in the form of delays in starting and completing work. One of the factors causing this promise injury is a natural state that does not support. In this situation, it is important to have a clear agreement on force majeure or emergency, so that it can be understood together about the limits of the responsibilities of each party.

The promise injury can result in several consequences, including the contractor being unable to fulfill its obligations under the contract, the contractor being responsible for the delays, and the contractor being unable to protect its interests. This can lead to a situation where the contractor is not able to fulfill its obligations under the contract, which can result in the project being delayed or even abandoned.

Conclusion

The position of the parties in the construction contracting contract in Labuhan Batu Regency shows many challenges, especially related to the pre-contracting process that is less than optimal, an imbalance in position, and the problem of promise injuries. Therefore, efforts are needed to increase transparency, justice, and compliance with existing regulations, so that the contract can be carried out better and provide benefits to all parties involved. This research is expected to be a reference for improving the practice of contracting contracts in the future.

Recommendations

Based on the findings of this research, the following recommendations are made:

  1. Improve the pre-contracting process: The pre-contracting process should be improved to ensure that the ability of service providers is revealed accurately, and the decision taken during this phase will determine the success of the project as a whole.
  2. Balance the position of the parties: The position of the parties, especially the contractor, should be balanced to ensure that the contractor is not forced to accept unfair conditions.
  3. Ensure transparency and justice: The transfer of contracts should be carried out transparently and justly, and the contractor should be informed of any changes to the contract.
  4. Agree on force majeure or emergency: A clear agreement on force majeure or emergency should be made to ensure that the limits of the responsibilities of each party are understood.

By implementing these recommendations, the construction contracting contract in Labuhan Batu Regency can be improved, and the benefits of the project can be realized by all parties involved.
Frequently Asked Questions (FAQs) about the Position of the Parties in the Contracting Contract for the Construction of the Labuhan Batu Regency Government Project Construction

Q: What is the pre-contracting process, and why is it important?

A: The pre-contracting process is a critical phase in the implementation of the construction contract. It involves the evaluation of service providers based on their technical, financial, and managerial capabilities. The pre-contracting process is important because it determines the ability of service providers to undertake the project and ensures that the best service provider is selected for the project.

Q: What are the challenges faced by contractors in the pre-contracting process?

A: The research conducted in Labuhan Batu Regency revealed that the pre-contracting process has not been carried out properly. As a result, the ability of service providers is not revealed accurately, which can impact the quality of the work produced. This process is very crucial because the decision taken during this phase will determine the success of the project as a whole.

Q: What is the imbalance of the position of the parties, and how does it affect contractors?

A: The imbalance of the position of the parties refers to the situation where contractors are often in a weak position, especially when dealing with service users. This can result in the contractor being forced to accept unfair conditions. For example, the subcontractor is only responsible to the main contractor, so that every subcontractor action is considered as a overall contractor action, without any guarantee of protection for the subcontractor itself.

Q: What is the transfer of contracts, and how does it affect contractors?

A: The transfer of contracts refers to the situation where the contract is transferred to other parties without the knowledge of the contractor. This clearly violates the principle of transparency and justice in the contract. This transfer can result in legal uncertainty and burden the contractor with the shoulder responsibility.

Q: What is a promise injury, and how does it affect contractors?

A: A promise injury refers to the situation where a contractor is unable to fulfill its obligations under the contract due to unforeseen circumstances. One of the factors causing this promise injury is a natural state that does not support. In this situation, it is important to have a clear agreement on force majeure or emergency, so that it can be understood together about the limits of the responsibilities of each party.

Q: What are the consequences of the imbalance of the position of the parties, transfer of contracts, and promise injury on contractors?

A: The imbalance of the position of the parties, transfer of contracts, and promise injury can result in several consequences, including the contractor being forced to accept unfair conditions, the contractor being responsible for the actions of the subcontractor, the contractor being unable to protect its interests, and the contractor being unable to fulfill its obligations under the contract.

Q: What are the recommendations to improve the position of the parties in the contracting contract?

A: Based on the findings of this research, the following recommendations are made:

  1. Improve the pre-contracting process: The pre-contracting process should be improved to ensure that the ability of service providers is revealed accurately, and the decision taken during this phase will determine the success of the project as a whole.
  2. Balance the position of the parties: The position of the parties, especially the contractor, should be balanced to ensure that the contractor is not forced to accept unfair conditions.
  3. Ensure transparency and justice: The transfer of contracts should be carried out transparently and justly, and the contractor should be informed of any changes to the contract.
  4. Agree on force majeure or emergency: A clear agreement on force majeure or emergency should be made to ensure that the limits of the responsibilities of each party are understood.

Q: What is the significance of this research?

A: This research is significant because it highlights the challenges faced by contractors in the contracting contract for the construction of the Labuhan Batu Regency Government Project Construction. The findings of this research can be used to improve the position of the parties in the contracting contract and ensure that the benefits of the project are realized by all parties involved.

Q: What are the implications of this research for future projects?

A: The implications of this research for future projects are that the pre-contracting process should be improved, the position of the parties should be balanced, and the transfer of contracts should be carried out transparently and justly. Additionally, a clear agreement on force majeure or emergency should be made to ensure that the limits of the responsibilities of each party are understood.