Evaluation of Construction Contract Administration at the Ministry of Public Works related to Risks Based on LKPP Regulation No. 12/2021 and FIDIC Red Book to Avoid Claims

This study aims to evaluate the construction contract administration system at the Ministry of PUPR by integrating LKPP Regulation No. 12/2021 and the FIDIC Red Book to prevent contract claims. With a quantitative approach and expert validation, the study identifies three key stages in contract management: preparation, execution, and completion. The results of the analysis show that the integration of these two systems results in 23 administrative activities that are mostly aligned, although there is still a need for adjustments in the recording of technical instructions and risk documentation. There were 15 administrative risks identified, with three dominant risks—turnover of officers, disorderly documentation, and poor monitoring—having the most influence on the occurrence of claims. Regression analysis showed a significant relationship between administrative inefficiencies and increased project claims. Therefore, it is recommended to strengthen the information technology-based administrative system and align regulations with international standards to increase accountability and reduce contractual conflicts.