LEGAL ANALYSIS OF CONTRACTOR DEFAULT CASES IN BALI

By | May 26, 2025

We, I Putu Agus Putra Sumardana, SH & Partners, consider the importance of legal protection for consumers as building owners from the actions of unscrupulous contractors who run away from their obligations to complete the building 100% or known as handover of the keys. Agus Putra explained that in Bali, the office of I Putu Agus Putra Sumardana, SH & Partners has handled many clients who are WNA (Foreign Citizens) who feel cheated by unscrupulous contractors who have not fulfilled their obligations in completing the building of their villas. Initially, the clients were interested because the contractor had a credible company office, but this did not correspond to the facts, that the contractor seemed like a fraudster who worked on the villa project carelessly, then left and abandoned the unfinished villa building just like that.

We as the attorney appointed by the client certainly try to work according to the client’s wishes, namely the return of the client’s money that has been paid to the rogue contractor, we send a letter of clarification which culminates in a letter of Somasi (Legal Warning), but the rogue contractor through his attorney does not follow the wishes of our client, instead avoiding the return of the money with various reasons, thus forcing us as attorneys to carry out further legal processes, namely a criminal report to the Police on suspicion of fraud and embezzlement of money and a civil lawsuit, namely a lawsuit for breach of promise (breach of promise).

The agreement made by the client with the contractor has fulfilled the elements as stipulated in Article 1320 of the Indonesian Civil Code, which consists of:

  1. Element of agreement for those who make the agreement
  2. Element of capacity, namely adults and not under guardianship
  3. Element of a certain thing, namely there is an object of the agreement, namely a villa building that can be economically valued
  4. Element of a lawful cause, namely the agreement is not prohibited and does not conflict with the law, morality and public order

Based on the provisions of Article 1320 of the Indonesian Civil Code, it basically contains “all agreements made in accordance with the law apply as laws for those who make them” Agreements must be carried out in good faith and agreements cannot be withdrawn except with the consent of both parties who make them or for reasons determined by law.

Default comes from Dutch which means bad performance (breach of promise, negligence or negligence), with 4 (four) categories, namely:

1. Not doing what was promised to be done

2. Carrying out what was promised but not in accordance with what was promised

3. Doing what was promised but late

4. Doing something that according to the agreement should not be done

Sanctions or punishments for default include:

1. Paying losses suffered (compensation)

2. Cancellation of the agreement

3. Transfer of risk

4. Paying costs arising from the case.

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