REVEALING THE LEGAL STRENGTH OF UNWRITTEN AGREEMENTS FOR SUBCONTRACTORS IN TURNKEY PROJECTS ACCORDING TO THE CONSTRUCTION SERVICES LAW

Abstract

This research aims to analyze the legal status and protection for subcontractors with unwritten agreements in turnkey projects in Indonesia, especially in the context of the Construction Services Law. Through a normative juridical approach, this research evaluates relevant legal provisions and identifies deficiencies in legal protection for subcontractors, especially in terms of payment and dispute resolution. The findings show that although the Construction Services Law provides a broad framework, there are gaps in the recognition and protection of unwritten agreements. This creates risks for subcontractors, given the difficulty in proving the existence of the agreement. Practical implications of these findings include the need to increase legal awareness and contract management practices in the construction industry. It is also recommended to develop industry standards or best guidelines for managing unwritten agreements. This research recommends further research on alternative dispute resolution mechanisms and evaluation of the effectiveness of new regulations in various jurisdictions.