IJSRP, Volume 7, Issue 12, December 2017 Edition [ISSN 2250-3153]
Manlian Ronald A. Simanjuntak, Cucun Sunarsih
Indonesian construction industry currently does not have a regulation concerning the applicable contract standard. But in practice, some of construction contracts used either refers to presidential decree (Perpres No 54/2010) and its amendmnets on procurement of government goods/services or international contract standards such as FIDIC, JCT etc. Case study in this research was conducted at an oil and gas company called PT X. It is one of the joint venture company whose majority shares are owned by one of the biggest Indonesian state-owned entreprises. PT X uses technical guidelines called Juknis as guidance in the procurement contract of good/services in which some of regulations used as reference are FIDIC and Perpres No 54/2010. Once construction contract is created and signed by employer and contractor, the important thing that must be conducted by both parties is to carry out contract administration. Some cases occurred in PT X were due to undisciplined of contract administration implementation, even though the construction contract had been well prepared. In the past ten years, the company has been experiencing dispute with several contractors which requires assistances of either court or dispute adjudication board. Besides such disputes result in substantial material losses to the company.