Issues and Challenges of Employing the Design-Build Contract System in Government Construction Projects: Lessons Learned from the Gelora Bung Karno Project
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16, Issue 3
Abstract
The design-build (DB) contract has become one of the most popular methods for delivering projects in the public and private sectors because it provides several advantages over the conventional design-bid-build system in terms of time and cost savings. However, despite the widespread use of this form of contract, empirical evidence demonstrates that there are some issues and challenges with its application. This paper explores these issues and challenges through a case study of the Gelora Bung Karno Project (the GBK Project) in Indonesia, a nationally significant government project executed using a DB contract. The primary data used in the paper were collected from in-depth interviews with key resource persons directly involved with the project, and secondary data were compiled from various sources, including technical and media reports. This study revealed disparities in the perceptions of a DB contract among the client of the GBK Project, its design-builders, and the Audit Board of Indonesia (Badan Pemeriksa Keuangan or BPK)—the state auditor. A lack of proper perception of the DB contract system has resulted in claims and disputes in the GBK Project. The findings suggest that in order to utilize a DB contract effectively, the client must have a clearly defined scope of work, as demonstrated in the basic design. Also, the client and design-builder must be familiar with the audit system from the perspective of the Indonesian government, which means that there are specific requirements and fundamental guidelines governing the audit of a DB contract.
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Data Availability Statement
All data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.
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Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16 • Issue 3 • August 2024
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© 2024 American Society of Civil Engineers.
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Received: Jul 24, 2023
Accepted: Feb 13, 2024
Published online: May 10, 2024
Published in print: Aug 1, 2024
Discussion open until: Oct 10, 2024
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