Impact Assessment of Litigation on Construction Projects in Resolving Construction Disputes (Study Case: SMPN 1 Wates Building Construction Project)

Abstract

Effective management of disputes is crucial to ensuring the success and quality of

construction projects. In Indonesia disputes frequently occur due to miscommunication, payment- related issues, and contractual violations. This study examines the disputes and the litigation method

used to resolve the disputes in the SMPN 1 Wates Building Construction Project, emphasizing the financial, timely, and relational consequences. The research aims to assess the impacts of using the litigation method to resolve construction disputes on construction projects. Employing a qualitative research methodology with a descriptive approach, this study utilizes literature reviews, field observations, documentation, and structured interviews with experts and parties involved in the case study. By employing these methods, the research aims to illustrate the impacts of litigation as a dispute resolution method in the construction industry, providing a comprehensive and accurate narrative of the observed subject. The research also aligns with Law No. 2 of 2017 concerning Construction Services Law (UUJK), which encourages the use of alternative dispute resolution (ADR) methods for construction services outside the courts. The results of this research conclude that litigation on SMPN 1 Wates project leads to negative impacts, including increased costs, time inefficiencies, and damage to stakeholders relationships and credibility. Interview findings revealed that litigation is not a suitable method to

resolve construction disputes, these disputes are best addressed through methods that promote win- win solutions, while litigation tends to result in a win-lose outcome. These results underscore the

importance for all parties to comprehend the effective strategies for preventing and managing disputes in construction projects.