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Public Works, Public Housing and Construction Sector: Overview of the Construction Safety and Liability Management System for Buildings Failure – Real Estate and Construction


Indonesia: Public works, public housing and construction sector: overview of the construction safety management system and liability for building failure

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Following our previous article regarding Indonesia’s New Investment Regime Following the Enactment of the Job Creation Law No. 11 of 2020 (“Job Creation Act“) in the construction sector, we will now focus our discussion on the construction safety management system and liability for failure of buildings, as regulated by Government Regulation No. 14 of 2021 amending RG No. 22 of 2020 on the Implementing Regulation of Law No. 2 of 2017 on Construction Services (“Modified GR 22/2020”).

The amended GR 22/2020 provides detailed provisions on sustainable construction as one of Indonesia’s efforts to protect the surrounding environment.

To note: On November 25, 2021, the Constitutional Court of Indonesia issued the Constitutional Court decision n ° 91 / PUU-XVIII / 2020 (“Decision of the Constitutional Court 91“), which declares that the law on job creation is” unconstitutional “and therefore has no legal status. In addition, Decision 91 of the Constitutional Court directs the Indonesian government to revise the law within two In the meantime, Job The Creation Law and its regulations will remain in force until the publication of the revisions. In view of this position, our analysis in this article will be applicable until any revision made to the law. and the promulgation of its implementing regulations.

Scope of the construction safety management system /
Sistem Manajemen Keselamatan Konstruksi
(“SMKK”)
: The government requires all users and providers of construction services, in particular contractors who provide: (i) construction management advice; (ii) supervision of construction consulting; (iii) construction works; and (iv) integrated construction works services for the implementation of the SMKK (Art. 84I (2) of GR 22/2020 amended).

In this regard, the aforementioned parties should undertake: (i) hazard identification, (ii) risk assessment, control and chances based on the work breakdown structure; and (iii) construction safety objectives and programs. (Art. 84I (3) of GR 22/2020 modified)

In addition to the above, construction must include all activities related to construction, operation, maintenance, demolition and reconstruction.

Safety aspect of SMKK: For compliance with safety, security, health and sustainability standards, art. 84I (5) – (8) of modified GR 22/2020 stipulates that the construction must ensure:

Security aspect Target
Construction engineering safety
  1. Buildings and / or construction assets; and or
  2. Equipment and materials.
Occupational health and safety
  1. Service users;
  2. construction labor; and
  3. Suppliers, guests and sub-service providers.
Public security
  1. Communities around the project; and
  2. The exposed public
Environmental security
  1. Working environment;
  2. Environment affected by the project;
  3. Natural environment; and
  4. Built environment.

Conceptual design of SMKK:Users of construction services and contractors should prepare a construction safety review document during the assessment, planning and / or design stages. Art. 84L (2) of modified GR 22/2020 stipulates that a preliminary draft of SMKK must include:

  1. extent of responsibility for assessment and / or planning;
  2. initial information on, among other things, location, environment, socio-economic feasibility and / or environmental impacts; and
  3. technical recommendations.

For the assessment and planning stages, the design work should, at a minimum, include:

  1. the extent of the designer’s responsibilities, including a statement that in the event of a design review, the designer should take responsibility for the review and impacts due to the design changes;
  2. methods of carrying out construction work;
  3. identification and mitigation of hazards, and determination of the level of risk;
  4. a list of construction safety standards and / or laws and regulations stipulated for the design;
  5. SMKK fees; and
  6. design of operating and maintenance safety guidelines for building construction. (Art. 84L (3) of GR 22/2020 modified)

SMKK Element: Art. 84L (8) of the modified GR 22/2020 stipulates that the elements of the SMKK are:

  1. Leadership in construction safety and workforce participation;
  2. Safety planning in construction;
  3. Support for construction safety;
  4. Safety operations in construction; and
  5. performance evaluation in the implementation of the SMKK.

The scope of construction failure:Art. 85A (1) of GR 22/2020 amended states that a failure of a building can be caused by the following reasons:

  1. building collapse where most parts or entire components of the building are damaged;
  2. building dysfunction when a building does not function as initially planned due to non-compliance with one or more aspects of safety, security, health and / or sustainability. (a and b above referred to together
    “Building failure”).

Building failure incident report: Anyone including the users, owner or manager injured in a faulty building can report the incident within three calendar days of the occurrence (Art. 85D (1) and (2) of GR 22/2020 amended).

The failure report of a building must contain: (i) the name of the building; (ii) the owner and / or manager; (iii) the location; (iv) types of Building Failure; (v) the time of the event; (vi) photo or proof; and (vii) the identity of the reporting party to be transmitted to and assessed by a designated expert assessor (Art. 85D (3) of GR 14/2021).

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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