Contract Governance in Lump Sum Design Build Infrastructure Projects
DOI:
https://doi.org/10.33050/n1by8t41Keywords:
Contract Governance, Legal Risk Management, Design and Build, Contract Amendments, Infrastructure ProjectsAbstract
Lump-Sum Design and Build contracts offer cost certainty and integrated project delivery, yet they often create significant governance challenges when project scope changes during infrastructure implementation. In the digital era, effective contract governance requires not only legal compliance but also technology-enabled mechanisms to ensure transparency, accountability, and balanced risk allocation. This study examines the legal protection and contract governance of Lump-Sum Design and Build agreements, focusing on how contract amendment mechanisms address the interests of contracting parties in the Jakarta–Cikampek II Elevated Toll Road Project. Using qualitative normative legal research with statute, conceptual, and case approaches, legal materials were analyzed through the lenses of contract governance, legal risk management, and digital transformation in project administration. The findings reveal that contract amendments function as critical governance instruments rather than mere administrative procedures. However, inconsistencies between contractual provisions and Indonesian construction service regulations regarding changes in work volume, technical specifications, and implementation requirements were identified. These gaps resulted in substantial contractual and financial impacts, totaling approximately Rp510.09 billion, due to unadjusted quantity variations. The study demonstrates that effective governance of Lump-Sum Design and Build contracts demands transparent, legally compliant, and digitally supported amendment mechanisms. Strengthening contract administration through digital tools, enhancing regulatory compliance, improving stakeholder coordination, and integrating technology-enabled risk management are essential to reduce legal uncertainty, mitigate financial risks, and support sustainable infrastructure delivery in strategic projects.
Downloads
References
[1] S. Nurhayadi, M. R. Lubis, D. I. Iqbal, A. A. Ilmih, N. E. Maaliki, and M. A. Al-Sobh, “Reconstructing legal protection for construction service providers in construction contracts based on pancasila justice,” Nusantara: Journal of Law Studies, vol. 5, no. 2, pp. 992–1016, 2026.
[2] A. R. Aruan, K. Toha, and A. R. Nurdin, “Digital governance for confiscating crypto-assets to settle tax liabilities in indonesia,” Aptisi Transactions on Technopreneurship (ATT), vol. 7, no. 3, pp. 1066–1079, 2025.
[3] I. Lifante-Vidal, “Legal interpretation: Concept, conceptions, and interpretative arguments in the civil law tradition,” in Research Handbook on Legal Argumentation. Edward Elgar Publishing, 2025, pp. 29–45.
[4] M. R. Nauvaldi, “Mobile internet analysis in prevention of negative impacts of information and communication technology in indonesia,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 4, no. 2, pp. 137–145, 2023.
[5] L. Epstein, G. Grendstad, U. ˇSadl, and K. Weinshall, “Introduction to the study of comparative judicial behaviour,” in The Oxford Handbook of Comparative Judicial Behaviour. Oxford University Press, 2023, pp. 3–30.
[6] C. Lukita, A. K. Chandra, R. Fahrudin, N. M. Agatha, and D. P. Suci, “Maturity level measurement model of msmes for sustainable economic growth,” Aptisi Transactions on Technopreneurship (ATT), vol. 8, no. 2, pp. 434–442, 2026.
[7] H. J. EL-Matury, “Construction occupational safety and health expert training at the department of public works and spatial planning of the north sumatra provincial government.” Jurnal Pengabdian Masyarakat Putri Hijau, vol. 6, no. 3, pp. 1–7, 2026.
[8] R. Wahdiniwaty, S. Pranata, and N. Komara, “Entrepreneurial technology resilience mediates entrepreneurial marketing on business performance in batik msmes,” Aptisi Transactions on Technopreneurship (ATT), vol. 7, no. 3, pp. 835–847, 2025.
[9] A. I. Hamzani, T. V. Widyastuti, N. Khasanah, and M. H. M. Rusli, “Legal research method: Theoretical and implementative review,” International Journal of Membrane Science and Technology, vol. 10, no. 2, pp. 3610–3619, 2023.
[10] H. S. Disemadi, “Lenses of legal research: A descriptive essay on legal research methodologies,” Journal of Judicial Review, vol. 24, no. 2, pp. 289–304, 2022.
[11] A. Lansonia, M. Austin, and E. Beldiq, “Study of student satisfaction in using the moodle e-learning system: Pls-sem approach,” in CORISINTA, vol. 1, no. 1, 2024, pp. 1–7.
[12] F. Kurniawan, X. Nugraha, G. A. Putra, V. Taniady, and B. Jansen, “The principle of balance formulation as the basis for cancellation of agreement in indonesia,” Lex Scientia Law Review, vol. 6, no. 1, pp. 121–156, 2022.
[13] S. Setiawan, U. Rusilowati, A. Jaya, R. Wang et al., “Transforming human resource practices in the digital age: A study on workforce resilience and innovation,” Journal of Computer Science and Technology Application, vol. 2, no. 1, pp. 84–92, 2025.
[14] A. I. Dryshliuk, Y. H. Orzikh, and V. M. Orzikh, “Application of law in judicial and notarial practice: Methodology, theory, practice.” Astra Salvensis, vol. 10, no. 1, p. 347, 2022.
[15] A. Jaya, F. Saputra, D. N. Ramadhan, T. Green et al., “Optimization of digital business to support msmes growth in the industry 4.0 transformation,” Journal of Computer Science and Technology Application, vol. 3, no. 1, pp. 1–10, 2026.
[16] Y. Shymansky, “The genesis and evolution of notarial practice: Historical and legal aspects, concepts, essence, and legal nature of the institution of notarial practice,” Baltic Journal of Legal and Social Sciences, no. 4, pp. 57–67, 2025.
[17] S. Shaumiwaty, H. R. C. MOCHAMAD, and N. HENI, “Enhancing personalized learning using artificial intelligence and machine learning approaches,” BLOCKCHAIN FRONTIER TECHNOLOGY: Pandawan, vol. 4, no. 2, pp. 156–170, 2025.
[18] P. Wulandari, “Normative legal research methodology from the experts’ perspective: A comparative analysis of concepts and approaches,” Archipel: Journal of Indonesian Interdisciplinary Studies, vol. 1, no. 6, pp. 12–25, 2026.
[19] M. Upreti et al., “The influence of financial literacy and risk preferences on cryptocurrency investment choices,” Blockchain Frontier Technology, vol. 4, no. 1, pp. 35–40, 2024.
[20] M. M. Rohman, N. Mu’minin, M. Masuwd, and E. Elihami, “Methodological reasoning finds law using normative studies (theory, approach and analysis of legal materials),” MAQASIDI: Jurnal Syariah dan Hukum, pp. 204–221, 2024.
[21] R. Fahrudin, A. Nuche, E. D. Safitri et al., “Innovations in technology and data systems to strengthen fisheries management,” Startupreneur Business Digital (SABDA Journal), vol. 5, no. 1, pp. 55–66, 2026.
[22] L. Meria, S. Hidayat, N. D. Santiago, S. Saukani, and S. H. Khotimah, “Blending work values, engagement, and satisfaction to drive ocb in technopreneurial startups,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 3, pp. 324–338, 2024.
[23] A. Kadim, I. Yusnita, A. Sutarman, R. Lesmana, and F. A. Ramahdan, “Assessing the impact of corporate governance and strategic leadership on economic growth and market stability,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 6, no. 2, pp. 177–187, 2025.
[24] J. A. Wiraantaka, S. Sami’an, and S. Hardjomuljadi, “Implementation of legal principles in construction service agreements: A normative study,” SIGn Jurnal Hukum, vol. 6, no. 2, pp. 386–400, 2024.
[25] W. W. A. Effendi, M. Maswanto, M. Murod, and I. Maria, “Artificial intelligence enhancing financial regulatory compliance through regtech governance applications,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 7, no. 2, pp. 216–225, 2026.
[26] E. Suliyanto, S. Hardjomuljadi et al., “Legal protection for construction workers in employment contracts according to employment law,” AL-QISTHAS: JURNAL HUKUM DAN POLITIK, vol. 16, no. 2, pp. 135–155, 2025.
[27] S. Purnama, R. A. Sunarjo, M. Hardini, and J. Parker, “Ai governance for sustainable tech adoption and carbon reduction in smart industries,” ADI Journal on Recent Innovation (AJRI), vol. 7, no. 2, pp. 149–160, 2026.
[28] L. A. Amelia, “Legal protection for workers’ rights in the indonesian labor system,” The International Journal of Politics and Sociology Research, vol. 11, no. 2, pp. 373–380, 2023.
[29] P. A. Sunarya, T. Handra, S. Syahyono, K. A. Al-Farouqi, and S. V. Sihotang, “Governance frameworks for sustainable artificial intelligence in digital business practices,” ADI Journal on Recent Innovation (AJRI), vol. 7, no. 2, pp. 173–184, 2026.
[30] N. K. Rajagopal, N. I. Qureshi, S. Durga, E. H. Ramirez Asis, R. M. Huerta Soto, S. K. Gupta, and S. Deepak, “Future of business culture: An artificial intelligence-driven digital framework for organization decision-making process,” Complexity, vol. 2022, no. 1, p. 7796507, 2022.
[31] C. P. Efunniyi, A. O. Abhulimen, A. N. Obiki-Osafiele, O. S. Osundare, E. E. Agu, and I. A. Adeniran, “Strengthening corporate governance and financial compliance: Enhancing accountability and transparency,” Finance & Accounting Research Journal, vol. 6, no. 8, pp. 1597–1616, 2024.
[32] F. Kurniawan, X. Nugraha, J. Hartono, and A. M. A. Wibisono, “Legal framework of sustainable construction procurement to prevent land degradation: comparison between indonesia, singapore and thailand,” Journal of Property, Planning and Environmental Law, vol. 16, no. 2, pp. 92–104, 2024.
[33] A. N. Indahwati, S. Sami’an, and S. Hardjomuljadi, “Arbitration in resolving construction cost claim disputes due to time extensions: A study of contract law in indonesia,” SIGn Jurnal Hukum, vol. 6, no. 2, pp. 263–281, 2024.
[34] S. Janizar and A. A. Anisarida, “The study of legal aspects of construction in civil building,” Greenation International Journal of Law and Social Sciences, vol. 1, no. 2, pp. 56–61, 2023.
[35] S. Sufiarina, Y. Yetti, S. Wahyuni, and M. W. Utama, “The organization of the general meeting of shareholders based on court determination from the perspective of shareholder rights’ protection,” Padjadjaran Jurnal Ilmu Hukum (Journal of Law), vol. 9, no. 2, p. 5, 2022.
[36] H. Gaffar and S. Albarashdi, “Copyright protection for ai-generated works: Exploring originality and ownership in a digital landscape,” Asian Journal of International Law, vol. 15, no. 1, pp. 23–46, 2025.
[37] M. M. Siahaan, R. A. Sunarjo, R. Sebastian, S. M. Wahid et al., “The role of natural language processing in enhancing chatbot effectiveness for e-government services,” Journal of Computer Science and Technology Application, vol. 2, no. 1, pp. 65–74, 2025.
[38] N. E. F. Zulvacar and A. Gunadi, “Legal analysis of articles of association amendments that cause share dilution: Implications for minority shareholders’ rights,” Jurnal USM Law Review, vol. 8, no. 2, pp. 741–753, 2025.
[39] P. Paroli, M. Muhtarom, M. M. Siahaan, D. Derlina, K. Moyo et al., “Smart contract based data strategy for startup growth in digital business systems,” Journal of Computer Science and Technology Application, vol. 3, no. 2, pp. 117–129, 2026.
[40] N. Ahmad, A. Masum, and A. W. Ali, “Conceptual, legal, and ethical considerations in physician-assisted suicide: An overview,” UUM Journal of Legal Studies (UUMJLS), vol. 15, no. 2, pp. 707–744, 2024.
[41] L. Novianti, N. Azizah, M. Mardiana, and C. Perez, “A converged blockchain and artificial intelligence approach for strengthening transparency and trust in digital enterprises,” ADI Journal on Recent Innovation (AJRI), vol. 7, no. 2, pp. 125–136, 2026.
[42] C. A. Bradley, J. Goldsmith, and O. A. Hathaway, “The rise of nonbinding international agreements: An empirical, comparative, and normative analysis,” U. Chi. L. Rev., vol. 90, p. 1281, 2023.
[43] E. Gashi and M. Ivezaj, “Quality management for design–bid-build versus design-and-build contracts for infrastructure projects,” International Review of Applied Sciences and Engineering, vol. 15, no. 1, pp. 130–137, 2024.
[44] H. Herman, W. Achmad, N. Aulia, S. Rusdian, and T. Green, “Utilizing ipfs for decentralized data storage a security and censorship resistance solution,” Blockchain Frontier Technology, vol. 5, no. 2, pp. 124–135, 2026.
[45] S. Wong, C. Zheng, X. Su, and Y. Tang, “Construction contract risk identification based on knowledge-augmented language models,” Computers in industry, vol. 157, p. 104082, 2024.
[46] K. M. Wongkar, T. F. Satriawan, N. P. L. Santoso, and N. Rangi, “Leveraging blockchain governance and smart contracts for entrepreneurs in social media,” Blockchain Frontier Technology, vol. 6, no. 1, pp. 86–96, 2026.
[47] M. A. Syari, U. Rahardja, T. Wellem, H. D. Purnomo, and R. Buaton, “Iot enabled smart farming system for optimizing crop management using sensors and machine learning,” in 2025 4th International Conference on Creative Communication and Innovative Technology (ICCIT). IEEE, 2025, pp. 1–7.
[48] D. Danang, H. Haryani, Q. Aini, F. A. Ramahdan, and J. Edwards, “Empowering digital literacy through blockchain based alphasign for secure and sustainable e-governance,” ADI Pengabdian Kepada Masyarakat, vol. 6, no. 1, pp. 87–97, 2025.
[49] H. E. Mutikanga, M. Abdul Nabi, G. G. Ali, I. H. El-Adaway, and A. Caldwell, “Postaward construction and contract management of engineering, procurement, and construction hydropower projects: Two case studies from uganda,” Journal of Management in Engineering, vol. 38, no. 6, p. 05022012, 2022.
[50] OECD, Building More Resilient Cross-border Regions: Considerations in Governance and Partnerships, ser. OECD Multi-level Governance Studies. Paris: OECD Publishing, 2024. [Online]. Available: https://doi.org/10.1787/d5fd3e59-en
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Endang Suprapti, Arihta Esther Tarigan, Jum Anggriani, Eni Jaya, Iwan Dewantoro
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
.png)
