Procurement Forum and Expo (IPFE) 2015 5 May 2015 Jakarta International Expo Vice Chairman for Legal, Contract Development and Disputes Settlement of National Board for Construction Services Development (LPJKN).  Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE. Secretary General of Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction (BADAPSKI) FIDIC Affiliate Member , FIDIC International Accredited Trainer; FIDIC Adjudicator;

Sarwono Hardjomuljadi, Introduction to FIDIC Conditions of Contract Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE. Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com Vice Chairman for Legal, Contract Development and Disputes Settlement of National Board for Construction Services Development (LPJKN).  Secretary General of Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction (BADAPSKI) FIDIC Affiliate Member , FIDIC International Accredited Trainer; FIDIC Adjudicator;

Garner (2004) “Contract is an agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law” (Bryan A.Garner (2004): “Black’s Law Dictionary”, Thomson West) Chow (2006) “Contract is a legally binding agreement formed when one party accepts an offer made by another and which fulfills the conditions” Martin and Law (2006) “Contract is a legally binding agreement. Agreement arises as a result of “offer and acceptance”, but a number of other requirements must be satisfied for an agreement to be legally binding”. (Chow Kok Fong (2006): ” Construction Contracts Dictionary”, Sweet & Maxwell Asia) Elizabeth A Martin and Jonathan Law (2006): “Oxford Dictionary of Law”, Oxford University Press John Adriaanse (2010) said that “A variety of factors makes a construction contract different from most other types of contracts. These include the length of the project, its complexity, its size and the fact that the price agreed and the amount of work done may change as it proceeds John Adriaanse (2010): “Construction Contract Law : The Essential s“ Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, In a judgement by Lord Wensleydale in 1861 said— “The question is not what the parties to a deed or other documents may have intended to do by entering into that deed, but what is the meaning of the words used in that deed: a most important distinction in all cases of construction and disregard of which often leads to erroneous conclusions”. It was even more strongly put in the judgement by Sir Gorell Barnes in 1907 when he said— “What a man intends and the expression of his intention are two different things. He is bound and those who take after him are bound by his expressed intention. If that expressed intention is unfortunately different from what he really desires, so much the worse for those who wish the actual intention to prevail.” Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, 1. What is FIDIC? FIDIC is probably best known to the outside world as the organisation which produces standard forms of contract for engineering construction projects. For example, the form used for many years for civil engineering construction works, commonly called the ‘Red Book’, is simply known to many as the ‘FIDIC Contract’. In fact, the document is often called ‘FIDIC’ with many people having no further idea of who or what FIDIC is. FIDIC is the International Federation of Consulting Engineers, and was founded in 1913 by France, Belgium and Switzerland. For the period over the two world wars it remained essentially a continental European organisation. The United Kingdom only became a member in 1949 followed by the United States in 1958. The newly industrialised countries started to become members in the 1970s, and it was only then that FIDIC could truly claim to be an international rather than a European organisation. At present there are more than 100 member associations from all parts of the globe, and it represents most of the independent practising consulting engineer in the world. FIDIC is a federation of national member associations; individual firms of consulting engineers are not themselves members of FIDIC. Many of these national associations represent other constructional professionals, such as architects, in addition to consulting engineers, based on one country one member association, in Indonesia INKINDO. FIDIC also has affiliate members interested in the work it undertakes, such as lawyers, adjudicator and contract trainers, in Indonesia, Sarwono Hardjomuljadi. Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Cons MDB Short Cons1 Plant1 EPCT1 Client-Cons English E PE PE PE PE PE French E (P)E (P)E (P)E (P)E PE Spanish E P P P P - Portuguese E (PE) (PE) (PE) (PE) (PE) Arabic - PE PE PE PE - German - - PE PE PE P Russian - P P P P P Chinese P P P P Indonesia - P P P P Serbian - - PE - - P Croatian - - PE PE - P Polish - P P P P P Japanese - P P P P P P: printed; E: electronic; () planned; PE – old edition Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Conditons of Contract for Construction How to chose the FIDIC Conditions of Contract Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE. Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com Conditons of Contract for Construction Vice Chairman for Legal, Contract Development and Disputes Settlement of National Board for Construction Services Development (LPJKN).  Secretary General of Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction (BADAPSKI) FIDIC Affiliate Member , FIDIC International Accredited Trainer; FIDIC Adjudicator;

Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Key Features – Construction Contract Employer DAB Agreement White Book Agreement Dispute Adjudication Board Engineer Administers Contract Contractor Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Key Features Employer responsible for design. Engineer, working for the Employer. Drawings, specifications, Bill of Quantities. Engineer can vary works but not change the contract. Payments based upon measurements. Payment conditional upon receipt of the progress report. Certification of payments by Engineer. Defects Notification Period may be extended for up to 2 years. Bill of Quantities Construction Contract is a remeasurement contract. Bill of Quantities represents the Works to be measured. BoQ sums and quantities in the Tender BoQ are estimates and are to be recalulated during the contract and the actual quantities applied. In the Conditions of Contract for Construction, the key points are the following: The Employer is responsible for most or all of the design. He can do this either using his own specialists (this is what we call ‘in-house engineering’), or an external engineer engaged for the purpose. I would like to take the opportunity to highlight the advantage of using the skills and experience and independence of mind of a consulting engineer for this task. There is an Engineer, working for the Employer, in charge of administration of the contract. There is typically a Bill of Quantities, established by the Employer before tendering, which contains descriptions of items of work, their quantities, and the principles for measurement. Payments to the contractor are then based on measurements of the work actually carried out, and the price per unit of such work. The payments are certified by the Engineer. Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Key Features – Plant Contract Employer DAB Agreement White Book Agreement Dispute Adjudication Board Engineer Administers Contract Contractor Similar to Construction Contract Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Key Features (Design-Build) Contractor is responsible for the design and the completed works . Works should be fit for purpose. Employer provides Employer’s Requirements and the Contractor designs and build/constructs in accordance with outline or performance specifications set by the Employer or his Consultant. For the civil engineering works, similar to Plant contracts except the Contractor will design the building or engineering facility before he builds/constructs it. Consultant usually does no detailed design and will only include drawings to show: - outline or conceptual or preliminary design of the building or facility; - location, limits of delivery, etc., and information needed by the Contractor. Under this contract, it is the contractor who shall carry out and be responsible for the design of the works. There is a contractual obligation for the designs to be prepared by qualified designers who are engineers or other professionals with all necessary experience and capability. Also here, there is an Engineer, working for the Employer, who is in charge of administering the contract. There is a contract price, agreed in advance, although subject to adjustments according to the contract. The price may be paid in instalments, according to how much of the work has been executed. The applications for payment have to be certified by the Engineer. Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Key Features Contractor responsible for designs and takes full responsibility for the Works. Employer may appoint a Representative. Fixed price, to cover risks taken on by Contractor (but adjustments in limited specified cases). Payments according to progress. No certification of payments. Employer’s Requirements usually a performance specification. Contractor carries out all engineering, procurement, construction, ready for operation at the turn of a key. No Engineer - instead the Employer. Also under this contract, it is the contractor who shall carry out and be responsible for the design of the works. Here, this responsibility is much larger than in the Plant and Design-Build contract, because it is essentially the contractor who carries the risk of initial data being incomplete or inaccurate. He is required to verify all the employer’s requirements and the physical conditions and, himself, take responsibity for their accuracy. There is no Engineer in the contract. The Employer may appoint a representative for the purpose of administering the contract, but he is not obliged to. The contract price is fixed in advance. It is likely to be higher than in the case of a Plant and Design-Build contract, because the contractor takes on more risks. When the work is being carried out, the price may be paid in instalments according to the progress of the works. For these reasons, this contract is typically used when the Employer (the client) is not able or willing to become involved in the details of the works or to take on any risk, but on the other hand is willing to pay a higher price for getting the work done properly and on time. Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Sub-Clause 14.1 The Contract Price Unless otherwise stated in the Particular Conditions: payment of the Works shall be made on the basis of the lump sum Contract Price, subject to adjustments in accordance with the Contract; (Conditions of Contract for EPC/Turnkey Projects -1999) Sub-Clause 14.1 The Contract Price the Contract Price shall be agreed or determined under Sub-Clause 12.3 [Evaluation] and be subject to adjustment in accordance with the Contract. (Conditions of Contract for Construction-1999 and MDB Harmonised Edition-2006) The above sub-clause shows that the Contract Price in EPC Contract is “fixed contract price”, means that in case there are some works necessary to be done on completing the Work (Constructive Change Order), such cost “shall be added to the contract price” and not “shall be included in the Contract Price” as for the cost of additional work in the Construction Contract. Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Sub-Clause 4.12 Unforeseeable Difficulties Except as otherwise stated in the Contract: the Contractor shall be deemed to have obtained all necessary information as to risks, contingencies and other circumstances which may influence or affect the Works; (b) by signing the Contract , the Contractor accepts total responsibility for having foreseen all difficulties and costs of successfully completing the Works; and (c) the Contract Price shall not be adjusted to take account of any unforeseen difficulties or costs. (Conditions of Contract for EPC/Turnkey Project-1999) Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Clause 4.12 Unforeseeable Physical Conditions In this Sub-Clause “physical conditions” means natural physical conditions and man made and other physical obstructions and pollutants, which the Contractor encounters at the Site when executing the Works, including sub-surface and hydrological conditions but excluding climatic conditions. If the Contractor encounters adverse physical conditions which he considers to have been Unforeseeable, the Contractor shall give notice to the Engineer as soon as practicable. (FIDIC General Conditions of Contract for Construction, 1st Edition 1999 and MDB Harmonised Edition 2006) Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, CASE Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Perpres No 54 Tahun 2010 Pasal 51 menyebutkan beberapa Jenis Kontrak: Kontrak Lump sum merupakan Kontrak Pengadaan Barang/Jasa ........ Kontrak Harga Satuan merupakan Kontrak Pengadaan Barang/Jasa.. Kontrak gabungan Lump Sum dan Harga Satuan adalah Kontrak yang merupakan gabungan Lump Sum dan Harga Satuan Kontrak Persentase merupakan Kontrak Pengadaan Jasa Konsultansi/Jasa Lainnya, dan Kontrak Terima Jadi (Turnkey) merupakan Kontrak Pengadaan Barang/Pekerjaan Konstruksi/Jasa Lainnya. Dari kelima jenis kontrak, hanya (5) Kontrak Terima Jadi yang menyebutkan Pekerjaan Konstruksi, yang lain sama sekali tidak menyebutnya. Apakah ini berarti untuk Pekerjaan Konstruksi, diwajibkan untuk menggunakan kontrak jenis ini? Stakeholder Jasa Konstruksi umumnya tidak menaruh perhatian akan hal ini, namun demikian jika suatu saat berproses di pengadilan, bukan tidak mungkin hakim akan mempermasalahkan hal ini. Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

LEX SUPERIOR DEROGAT LEGI INFERIORI LEX POSTERIOR DEROGAT LEGI PRIORI Peraturan Pemerintah No 29 Tahun 2000 Pasal 21 (1) Kontrak kerja konstruksi dengan bentuk imbalan Lump Sum sebagaimana dimaksud dalam Pasal 20 ayat (3) huruf a angka 1 merupakan kontrak jasa atas penyelesaian seluruh pekerjaan dalam jangka waktu tertentu dengan jumlah harga yang pasti dan tetap serta semua risiko yang mungkin terjadi dalam proses penyelesaian pekerjaan yang sepenuhnya ditanggung oleh penyedia jasa sepanjang gambar dan spesifikasi tidak berubah. LEX SUPERIOR DEROGAT LEGI INFERIORI Peraturan Presiden No 54 Tahun 2010 Pasal 51 (1) Kontrak Lump Sum merupakan Kontrak Pengadaan Barang/Jasa atas penyelesaian seluruh pekerjaan dalam batas waktu tertentu sebagaimana ditetapkan dalam Kontrak, dengan ketentuan sebagai berikut: jumlah harga pasti dan tetap serta tidak dimungkinkan penyesuaian harga; semua risiko sepenuhnya ditanggung oleh Penyedia Barang/Jasa; pembayaran didasarkan pada tahapan produk/keluaran yang dihasilkan sesuai dengan isi Kontrak; sifat pekerjaan berorientasi kepada keluaran (output based); total harga penawaran bersifat mengikat; dan tidak diperbolehkan adanya pekerjaan tambah/kurang LEX POSTERIOR DEROGAT LEGI PRIORI Peraturan Presiden No 4 Tahun 2015 Pasal 89 (2a) Pembayaran untuk pekerjaan konstruksi, dilakukan senilai pekerjaan yang telah terpasang. Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi,   Physical causes of construction claims Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE. Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com Construction Claim Vice Chairman for Legal, Contract Development and Disputes Settlement of National Board for Construction Services Development (LPJKN).  Secretary General of Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction (BADAPSKI) FIDIC Affiliate Member , FIDIC International Accredited Trainer; FIDIC Adjudicator;

Sarwono Hardjomuljadi, EMPLOYER RESPONDENT: 42, VARIABLE: 59 (ANALYSIS BY RELATIVE IMPORTANCE INDEX) Faktor RII A5 0.785714 D05 0.781746 A6 0.765873 A7 0.746032 D06 0.742063 C10 A18 0.738095 A12 B05 0.734127 A11 D02 0.722222 D03 0.718254 D01 C07 0.706349 A14 CHANGES IN DESIGN (A05) DIFFERENT INTERPRETATION OF CONTRACT DOC.(D05) CHANGES IN SCOPE OF WORKS (A06) CONTRACTOR’S LATE COMPLETION (A07) VARIATION ORDER (D06) SLOW DECISION MAKING INVOLVING ALL PARTIES (C10) Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, ENGINEER RESPONDENT: 27, VARIABLE: 59 (ANALYSIS BY RELATIVE IMPORTANCE INDEX) Factor RII D05 0.740741 B03 0.728395 A19 0.722222 A12 D04 0.716049 A5 A20 0.709877 A11 A16 0.703704 DIFFERENT INTERPRETATION OF CONTRACT DOC.(D05) SUBSURFACE CONDITIONS OF GEOLOGY (B03) POSSESSION OF SITE AND AVAILABILITY (A19) DESIGN ERROR AND OMMISSION (A12) Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

CONTRACTOR RESPONDENT: 40, VARIABLE: 59 Factor RII A19 0.829167 A5 0.825 D04 0.8125 D02 0.808333 C07 0.804167 A6 0.8 B05 A18 0.795833 E05 0.7875 D05 0.783333 C10 0.779167 A16 0.775 D06 0.770833 A14 0.766667 B03 0.7625 D03 0.758333 D01 A12 0.754167 C02 0.725 A17 0.716667 C03 0.7125 E06 0.708333 A15 0.704167 (ANALYSIS BY RELATIVE IMPORTANCE INDEX) POSSESSION OF SITE AND AVAILABILITY (A19) CHANGES IN DESIGN (A05) DELAYED PAYMENT ON CONTRACT AND EXTRAS (D04) CONSTRUCTIVE CHANGE ORDER (D02) POOR MANAGEMENT AND SUPERVISION (C07) CHANGES IN SCOPE OF WORKS (A06) UNFORESEEABLE PHYSICAL CONDITIONS (B05) PROJECT PLANNING AND INTERFACING (A18) GOVERNMENT POLICIES (E05) DIFFERENT INTERPRETATION OF CONTRACT DOC.(D05) SLOW DECISION MAKING INVOLVING ALL PARTIES (C10) ORAL CHANGES ORDER BY EMPLOYER (A16)

KLAIM Faktor 1.1 Constructive Change Order Faktor 2.1 Oral Change Order by Employer Faktor 1.2 Variation Order Faktor 2. 2 Possession of Site and Availability Faktor 1.3 : Inadequate site investigation KLAIM Faktor 3.1 Changes in Design Faktor 3.2 Subsurface conditions of geology Faktor 3.3 Other Contractors Interference and Delay Faktor 3.4 Inefficiency and Disruption Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Figure 02: Causal Factors of Claims and Disputes in HEPP (2014) Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Figure 03: Causal Factors of Claims and Disputes in Road Projects (2014) Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

FIDIC Conditions of Contract’s Important Clauses Related to Claims Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE. Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com Vice Chairman for Legal, Contract Development and Disputes Settlement of National Board for Construction Services Development (LPJKN).  Secretary General of Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction (BADAPSKI) FIDIC Affiliate Member , FIDIC International Accredited Trainer; FIDIC Adjudicator;

Sarwono Hardjomuljadi, Clauses related to contractor’s claims based on FIDIC Conditions of Contract for Construction (red book and pink book) Sub-clause 1.9 Delayed Drawings or Instructions SubClause 2.1 Right of access to the Site Sub-Clause 4.7 Setting Out Sub-Clause 4.12 Unforeseeable Physical Conditions Sub Clause 4.24 Fossils Sub Clause 7.4 Testing Sub Clause 8.4 Extension of Time for Completion Sub-Cause 8.5 Delayed Caused by Authorities Sub-Clause 8.9 Consequences of Suspension Sub Clause 10.2 Taking Over of Parts of the Works Sub Clause 10.3 Interference with Test on Completion Sub-Clause 11.8 Contractor to Search Sub-Clause 12.4 Omissions Sub Clause 13.7 Adjustment for Changes in Legislation Sub Clause 16.1 Contractor’s Entitlement to Suspend Sub Clause 17.4 Consequences of Employer’s Risks Sub Clause 19.4 Consequences of Force Majeure Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Clauses related yo contractor’s claims based on FIDIC Conditions of Contract for EPC/Turnkey Project (silver book) Right of claims and chance to submit the claim could be found in the clauses below: Sub-Clause 2.1 Right of access to the Site Sub-Clause 8.9 Consequences of suspension Sub-Clause 10.3 Interference with Test on Completion Sub-Clause 13.7 Adjustment for Changes in Legislation Sub-Clause 16.1 Contractor’s entitlement to suspend of Work Sub-Clause 17.4 Consequences of Employer’s Risk

Sarwono Hardjomuljadi, Questionair distributed to 20 respondents from employer side (including engineer/supervisory consultant) and 20 respondents from contractor side related to the implementationn of construction projects in the Ministry of Public Works and Public Housing using the FIDIC Conditions of Contract MDB Harmonised Edition 2006 in Indonesia, indicated that most commonly used clauses by the contractor as the base of construction claim as follows (Hardjomuljadi et al, 2014): Sub-Clause 4.2 Unforeseeable physical conditions Sub-Clause 2.1. Right of Access to the Site Sub-Clause 1.9. Delayed Drawings or Instructions. Sub-Clause 13.7 Adjustment for changes in legislation Sub-Clause 8.1. Commencement of the Works Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi, Construction Disputes Dispute resolution Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE. Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com Construction Disputes Vice Chairman for Legal, Contract Development and Disputes Settlement of National Board for Construction Services Development (LPJKN).  Secretary General of Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction (BADAPSKI) FIDIC Affiliate Member , FIDIC International Accredited Trainer; FIDIC Adjudicator;

FINISHED ADR LITIGATION CLAIMS YES NO AGREED DISPUTES FINISHED ADR LITIGATION by negotiation by conciliation by arbitration by cosultation by mediation by expert assesment INDONESIAN LAW No 30/ 1999 assisted by expert assesor by mediation by conciliation by arbitration INDONESIAN LAW No 18/ 1999 Act No 29 Year 2000

Definisi arbitrase menurut Blaxk’s Law Dictionary adalah: A method of dispute resolution involving one or more neutral third parties who are usually agreed to by disputing parties and whose decision is binding. Arbitrase menurut Kamus Besar Bahasa Indonesia adalah usaha perantara dalam meleraikan sengketa; peradilan wasit. [1] Arbitrase adalah suatu metode penyelesaian sengketa yang dilaksanakan oleh arbiter ad-hoc atau majelis arbitraase, yang dikenal juga sebagai pengadilan swasta. Kelebihan arbitrase dibanding dengan peradilan umum adalah adanya jaminan kerahasiaan sengketa para pihak, prosedur lebih sederhana, para pihak bebas memilih arbiter yang menurut keya kinannya mempunyai kompetensi, pengalaman yang cukup atas substansi permasalahan yang disengketakan, para pihak dapat menentukan pilihan hukum dan tempat pelaksanaan arbitrase, putusan arbiter merupakan putusan final yang mengikat para pihak dan dalam kaitannya dengan pengadilan umum terdapat ketentuan yang menyatakan masalah yang sudah diputuskan di arbitrase tidak dapat diajukan lagi ke pengadilan negeri.

Mediasi Dalam Black’s Law Dictionary, mediation didefinisikan sebagai berikut: A method of non binding dispute resolution involving a neutral third party who tries to help the disputing parties reach a mutually agreeable solution.10 Kamus Besar Bahasa Indonesia mendefinisikan mediasi sebagai: Proses pengikutsertaan pihak ketiga dalam penyelesaian suatu perselisihan sebagai penasehat. PP No 29 Tahun 2000 Pasal 50 Penyelesaian sengketa dengan menggunakan jasa mediasi sebagaimana dimaksud dalam Pasal 49 ayat (1) huruf a angka 1) dilakukan dengan bantuan satu orang mediator. (2) Mediator sebagaimana dimaksud dalam ayat (1) ditunjuk berdasarkan kesepakatan para pihak yang bersengketa. (3) Mediator tersebut harus mempunyai sertifikat keahlian yang ditetapkan oleh Lembaga. (4) Apabila diperlukan, mediator dapat minta bantuan penilai ahli. (5) Mediator bertindak sebagai fasilitator yaitu hanya membimbing para pihak yang bersengketa untuk mengatur pertemuan dan mencapai suatu kesepakatan. (6)Kesepakatan tersebut pada ayat (5) dituangkan dalam suatu kesepakatan tertulis.

Konsiliasi: Dalam Black’s Law Dictionary concilliation didefinisikan sebagai berikut: 1).A settlement of a dispute in an agreeable manner, 2). A process in which a neutral person meets with the parties to a dispute and explores how the dispute might be resolved. PP No 29 Tahun 2000 Pasal 51 (1) Penyelesaian sengketa dengan menggunakan jasa konsiliasi sebagaimana dimaksud dalam Pasal 49 ayat (1) huruf a angka 2) dilakukan dengan bantuan seorang konsiliator. (2) Konsiliator sebagaimana dimaksud dalam ayat (1) ditunjuk berdasarkan kesepakatan para pihak yang bersengketa. (3) Konsiliator tersebut harus mempunyai sertifikat keahlian yang ditetapkan oleh Lembaga. (4) Konsiliator menyusun dan merumuskan upaya penyelesaian untuk ditawarkan kepada para pihak. (5) Jika rumusan tersebut disetujui oleh para pihak, maka solusi yang dibuat konsiliator menjadi rumusan pemecahan masalah. (6) Rumusan pemecahan masalah sebagaimana tersebut pada ayat (5) dituangkan dalam suatu kesepakatan tertulis.

Decision by the Parties Sarwono Hardjomuljadi, Dispute Resolution of Construction Contracts in Indonesia Supreme Court Supreme Court Supreme Court FIDIC GCC Clause 20 High Court Law No 30 Year 1999 Art 72 District Court District Court District Court MEDIATION Arbitration Arbitration CONSULTATION NEGOTIATION Decision by the Parties CONCILLIATION Board Dispute Board Dispute EXPERT ASSESMENT Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com 2

DB/DRB/ DAB Gagal Keputusan 84 hari (Klausula 20.4 Para 5) 84 hari Disepakati Final dan mengikat Tidak sepakat 28 hari (Klausula 20.4 Para 5) 28 hari (Klausula 20.4 Para 5) Yes Notifikasi Penolakan atas keputusan Amicable Setlement 56 hari (Klausula 20.5 Para 1) No Pelaksanaan Arbitrase Sarwono Hardjomuljadi, Dr, Ir, MSC (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE Email: sarwonohm2@yahoo.co.id & info@sarwonohm.com www.sarwonohm.com

Sarwono Hardjomuljadi Dr, Ir, MSc (Civ), MSBA (Bus), MH (Law), MDBF (ADR), ACIArb (Arb), ACPE (Eng) FIDIC Affiliate Member FIDIC Adjudicator FIDIC International Accredited Trainer Federation Internationale des Ingenieurs-Conseils FIDIC - Box 311 - CH-1215 Geneva 15 - Switzerland SKYPE fidic.secretariat - Tl +41-22-799 49 00 - Fx +41-22-799 49 01 – w ww.FIDIC.org Country Representative for Indonesia (MDRBF) The Dispute Resolution Board Foundation 19550 International Blvd. So Suite 314 Seattle, Washington 98188, USA Tel.(206) 878-3336, Fax (206) 878-3338 www.drb.org Corporate Panel Member (MDBF) The Dispute Board Federation 14, rue du Rhone 1204 Geneva, Switzerland Tel: +41 22 819 19 68, Fax: +41 44 732 69 95 www.dbfederation.org Associate Member (ACIArb) Chartered Institute of Arbitrators 12 Bloomsbury Square London, WC1A 2LP, UK Tel: +44 (0)20 7421 7444; Fax: +44 (0)20 7404 4023 www.ciarb.org