International Journal of Educational Review, Law And Social Sciences (IJERLAS)
Vol. 6 No. 1 (2026)

Legal Certainty in Dispute Resolution within the Construction Services Industry for Small and Medium Enterprises

Anita Noviyanti (Universitas Bandar Lampung)
Tami Rusli (Universitas Bandar Lampung)
Zainab Ompu Jainah (Universitas Bandar Lampung)
Erlina B (Universitas Bandar Lampung)



Article Info

Publish Date
30 Jan 2026

Abstract

The construction services industry is central to infrastructure development in Indonesia, yet contractual disputes over payments, project delays, and variations can impose substantial legal and financial burdens on small and medium-sized enterprises (SMEs). This study examines the legal certainty of dispute-resolution mechanisms available to construction SMEs and identifies reforms that could strengthen accessible and effective remedies. It employs normative legal research using statutory, case-based, comparative, theoretical, and philosophical approaches. The analysis considers Law Number 2 of 2017 on Construction Services, the 1999 Arbitration and Alternative Dispute Resolution Law, and relevant implementing regulations, together with comparative lessons from Singapore and the United Kingdom. The findings identify overlapping jurisdiction between litigation and non-litigation forums, insufficient institutional support for dispute boards, inconsistent contractual dispute-resolution clauses, and limited access to affordable remedies for smaller contractors. Comparative analysis suggests that statutory adjudication, specialized dispute-resolution institutions, clear procedural deadlines, and enforceable decisions could improve predictability and protect project cash flow. The study develops a three-level reform framework involving regulatory harmonization, institutional strengthening of construction-sector alternative dispute-resolution mechanisms, and standardization of contractual dispute clauses. Its contribution is an integrated assessment of normative, institutional, and enforcement-related dimensions of legal certainty, with particular attention to the vulnerabilities of SMEs in Indonesian construction contracts.

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Journal Info

Abbrev

IJERLAS

Publisher

Subject

Religion Humanities Environmental Science Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Library & Information Science Social Sciences Other

Description

This journal accepts articles on results of the research in fields of Education, Cross Culture, Law, Environmental Empowerment which are the latest issues from the results of activities or practical implementations that are problem solving, comprehensive, meaningful, latest and sustainable findings ...