FORMULATION OF THE PRINCIPLE OF BALANCE IN A FAIR CONSTRUCTION CONTRACT
Keywords:
principle of balance; construction contracts; proportionality; law of contractsAbstract
The principle of balance is one of the fundamental principles in contract law that requires proportionality of rights and obligations between the parties, especially in construction work contracts. This principle is crucial considering that there are still many contract drafting practices that place one of the parties, generally the service provider, in a dominant position without rights that are balanced with his obligations, as seen in the case of villa purchase which limits the buyer's right to use the object he has purchased. The problems studied include how to regulate the principle of balance in the Indonesian contract legal system and how to describe it in construction contracts. This study uses a normative juridical method with a legislative, conceptual, and comparative legal approach, through a literature study of primary, secondary, and tertiary legal materials that are analyzed qualitatively. The results of the study show that the principle of balance comes from the principles of freedom of contract, consensualism, good faith, and pacta sunt servanda as stipulated in Article 1320 and Article 1338 of the Civil Code, and is further described in the Construction Services Law which requires equality of rights and obligations between users and service providers in every stage of the contract starting from negotiation, implementation, to dispute resolution. This study also identifies various unbalanced contract models and their causative factors, including lack of understanding of business processes and lack of legal protection, while offering an ideal construction contract norm model based on the proportionality of the exchange of rights and obligations of the parties as a basis for the creation of contractual justice in the construction sector.
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