Impact of the Pandemic COVID-19 on the Implementation of Construction Contracts

Abstract

The COVID 19 pandemic has affected various sectors in the world, including the construction sector in Indonesia. The biggest impact is the impact on the health sector and the economy. The government budget for the construction sector has been cut very significantly, which has a negative impact on stakeholders, especially causing financial problems for business actors in construction. In this study, the identification of the impact of the COVID 19 pandemic was carried out on the construction sector, especially in the implementation of contracts. The research method used is through a quantitative analysis with questionnaire data which is distributed to stakeholders involved in the implementation of construction contracts. The results of identification study through questionnaires show that 80% of construction projects are still running in the current COVID 19 pandemic condition. However, pandemic conditions affect project performance, especially at the time of project completion. In addition, in implementing the health protocol, assistance, additional costs, improvement of human resource capacity, and special equipment are required, so that the health protocol can be implemented properly. On the other hand, most stakeholders stated that the online coordination system during the pandemic for the implementation of construction projects tends to be less effective. Hopefully, the research results can provide direction in finding the best strategy to reduce the impact of the COVID 19 pandemic on the construction sector, both in terms of health and project performance.