Reconstruction of Agreement Arrangements for Subcontractors in the Implementation of Key Handovers (Turn Key Project) Based on Justice Values

Arief Wardhana (Universitas Langlangbuana, Jawa Barat, Indonesia.)
Hernawati RAS (Universitas Langlangbuana, Jawa Barat, Indonesia.)
Yeti Kurniati (Universitas Langlangbuana, Jawa Barat, Indonesia.)

Greenation International Journal of Law and Social Sciences
Vol. 4 No. 4 (2026): (GIJLSS) Greenation International Journal of Law and Social Sciences (September

This study aims to examine: First, How is the legal protection for subcontractors in the implementation of Turn Key contracts if the main contractor does not fulfill its obligations Second, How is the work risk between the main contractor and the subcontractor in the implementation of Turn Key contracts from the perspective of national agreement law if problems occur. Turnkey contracts are a payment method that is made at once after the project is completed. The turn key contract payment method basically places the risk on the contractor. What is meant by risk here is all forms of risk that may occur after the construction work contract is signed, namely; risks before the work is carried out (preparation period for work implementation), risks during the work implementation, and risks after the work is completed but has not been handed over to the work owner. Therefore, it is appropriate and proper for the contractor to receive adequate legal protection, especially in terms of his right to receive payment as it should be. This study uses a mixed method of normative juridical and socio-legal approaches with descriptive analytical research specifications, as well as qualitative normative data analysis methods. Based on the research results, the following conclusions can be drawn: First, legal protection for subcontractors in the implementation of Turn Key contracts if the main contractor does not fulfill its obligations is very important because subcontractors are often in a vulnerable position. Subcontractors not only depend on payments from the main contractor to cover their operational costs, but must also ensure that their work meets the standards set out in the contract. Second, to reduce the risk of legal disputes and ensure effective resolution, the main contractor and subcontractor must draft a contract that includes a clear dispute resolution clause. The existence of a structured dispute resolution mechanism, the parties can more easily resolve disputes and continue the project with minimal disruption.