Contract Analysis for Design and Build Lump Sum Price

Cut Riska Irnanda (), Isfenti Sadalia and Nazaruddin
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Cut Riska Irnanda: Universitas Sumatera Utara
Isfenti Sadalia: Universitas Sumatera Utara
Nazaruddin: Universitas Sumatera Utara

A chapter in Proceedings of the 19th International Symposium on Management (INSYMA 2022), 2023, pp 1162-1169 from Springer

Abstract: Abstract A toll road is one of the National Strategic Projects with complete problems and needs highspeed performance during construction. So, contract construction that is usually applied to these projects is design and build contract. Furthermore, best practice for Design and Build is combined with Lump Sum as an estimation cost aspect, so the type of contract used is Design and Build Lump Sum Price. This study aims to review the implementation of the Design and Build Lup Sum Price Contract based on the terms and conditions in the Indonesian Legislation and FIDIC on the Trans Sumatra Toll Project Kuala Tanjung – Inderapura Section 2 according to the contractor’s point of view to mitigating the negative risks that arise especially in the financial aspect. This research is descriptive research with a qualitative data analysis method by comparing the implementation of the contract according to the applicable law. The first step was to collect secondary data in a contractual resume, then make a study based on existing legal standards. Based on the results, it can be stated that the design and build Lump Sum price contract is a construction work contract in order to complete a job within a certain period of time according to the basic design scope as the basis for quotation, which has fixed costs as long as no intervention results in changes contract documents that may give additional payments for the rights. In the construction of the Kuala Tanjung – Inderapura Toll Road Section 2, there was an additional scope of the contract which resulted in additional work due to instructions from the owner and other parties, as well as an intervention to change specifications due to differences in the basic design at the tender which poses negative risks to the financial aspect for the contractor.

Keywords: contract construction analysis; design and build; lump sum (search for similar items in EconPapers)
Date: 2023
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DOI: 10.2991/978-94-6463-008-4_143

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