Versita

Disruption Of Legal Review During the Covid-19 Pandemic and The Role Of Mediation In An Agreement Settlement

Gunawan Raka ,Hamzah ,I Gede Arya Bagus Wiranata
Keywords: construction; Agreement; Development Companies, Banks, Consumers; Covid-19 ,

Abstract

Physical construction or construction is a field that continues and develops at all
times. Construction is an activity that displays the splendor of a country’s civilization. Every
era leaves evidence of civilization through development. The construction of office and
residential buildings, and even areas, is an activity performed by the private sector and the
general public as consumers.Since the end of 2019, China has faced a new virus attacking
humans, which has spread to become a global pandemic known as Coronavirus Disease-19
or (Covid-19). All countries are moving behind with the speed at which the virus is spreading
and terminating, whereas health Protocol occupies a superior position compared to all other
aspects. Covid-19 disrupted all aspects, including the construction sector.The construction
agreement was taken, hostage. The developer company failed to build because the bank
failed to provide credit due to the precautionary principles; the consumer became a
vulnerable party in constructing this legal relationship. This research is normative-analytic
by tracing legal theories to solve construction agreement failure due to Covid-19. The results
of the study found that the force majeure theory was not fully applicable to this problem.
The theory of impossibility is better able to enter into the completion of a construction
agreement disrupted by Covid-19. Good faith is an essential asset for lead parties to
solutions based on interests. The path of re-negotiation, mediation, or arbitration motivates
the court to legitimize the construction agreement's completion