AN LEGAL ANALYSIS OF LEGAL BREACH OF CONTRACT FOR

PROCUREMENT OF SERVICES
Bambang Fitrianto

UNIVERSITAS PEMBANGUNAN PANCA BUDI

MEDAN, NORTH SUMATERA
INDONESIA
bambangfitrianto46@gmail.com

ABSTRACT

In a contract, what is agreed upon must be carried out in good faith, but sometimes things that
have been agreed upon are not carried out. This research is empirical research using primary data from
field research through interviews with parties related to the Procurement of Goods and Services at
BUMN, North Sumatra, as well as secondary data resulting from library research. Regarding this
matter, PPK has written to the provider 2 (two) times and has not received a definite answer as to the
cause of the delay. For violations committed by CV. Sumber Berkah as the PPK provider gave CV a
blacklist sanction. Sumber berkah as provider for 2 (two) years. To prevent legal liability, parties
entering into contracts for the procurement of goods/services should be guided by and comply with the
provisions of laws and regulations regarding the procurement of goods/services, and carry out what has
been agreed in the contract in good faith.
Keywords: Contracts, and Procurement of Goods/Services

INTRODUCTION.
Indonesia is a developing country, actively implementing development in all fields. Development is
an effort to create prosperity and welfare of the people. 1The results of development must be able to be
enjoyed by all people as an increase in physical and spiritual welfare in a fair and equitable manner.
In administering the state, the government is obliged to provide welfare to the community through
developing the business world in various sectors by paying attention to the culture and culture of the
community. To support these activities, facilities and infrastructure are needed, one of which is through
government procurement of goods/services, efficiently, effectively, openly, competitively, transparent,
fair, non-discriminatory and accountable. Fulfillment of goods/services by the government is classified as
a type of expenditure contract.
In meeting needs, Almost all government agencies carry out expenditure contracts, namely
expenditure contracts for the procurement of goods/services to meet the needs of companies or
government agencies for goods/services that can support performance and performance. An agreement is
an act by which one or more parties bind themselves to one or more people. According to Abdul Kadir
Muhammad, agreement is an agreement by which two or more parties bind themselves to carry out
something in the field of assets. Contracts that involve the government as a party are called government
contracts. In This is the government, utilizing civil law instruments, so that contracts are made
Government contracts have different characteristics compared to private contracts in general. The
existence of elements of public law causes legal rules and principles in contract law private sector does not
fully apply to contracts made by the government.
In Presidential Decree Number 16 of 2018, a contract for the procurement of goods/services is a
written agreement between the Commitment Making Officer and the goods/services provider or self-
management implementer. This contractual relationship relates to the obligation to provide, build and
maintain public facilities. In this contract, the objects are goods, construction work, consulting services
and other services.
LITERATURE REVIEW.
2.1. Legalitation Of Civil Code.

Agreements are regulated in Book III of the Civil Code. The regulations adopted in Book III of the
Civil Code are an open system, meaning that people/parties are free to make any agreement in terms of
content, purpose and form, as long as it does not conflict with the law, public order and good morality.
Article 1313 of the Civil Code defines an agreement as an act in which one or more people bind
themselves to one or more other people. Apart from agreements, there are also translations of agreements
as routing.
An agreement is a legal relationship between two or more parties based on an agreement to give rise
to legal consequences. Agree to determine binding rules or rules or rights and obligations to be obeyed and
carried out. An agreement to give rise to legal consequences, gives rise to rights and obligations and if
violated can be subject to sanctions. An agreement is a legal relationship of wealth or property between
two people or more which gives one party the right to obtain achievements and oblige other parties to
fulfill achievements16. An agreement is an event where someone promises to do something.17Achmad
Sanusi mentions agreements as a source of law because the law (Article 1338 of the Civil Code) calls them
a source of law.18On the other hand, if the law and agreement are viewed from the law of engagement,
according to R Subekti they have the same position as the source of the engagement.
An agreement is a legal relationship that occurs either because of an agreement or because of law or
some also say because of law20. This legal relationship due to an agreement or law is called a binding
legal relationship, that is, the obligations of the agreement can be legally enforced.
The function of an agreement is the same as a law, but it applies only to the maker. Agreements
play an important role as guidelines, guidelines and evidence for the parties. A good agreement will
prevent disputes from occurring because it has been arranged beforehand. Even if a dispute occurs, we will
help with resolution efforts. A good agreement will provide guarantees and certainty to the parties thereby
helping carry out business transactions.
When making an agreement, you must understand the conditions for the validity of the agreement
as regulated in Article 1320 of the Civil Code, namely: The parties agree to make an agreement; The
parties are capable make an agreement; There are certain things that are agreed upon; and a lawful cause.
Article 1338 of the Civil Code states: All agreements made are in accordance with
laws serve as law for those who make them. Agreement cannot be withdrawn other than by agreement of
both parties, or for reasons determined by law. Agreements must be carried out in good faith.
An engagement is a legal relationship between one legal subject and another legal subject due to
an action, event or situation. Actions such as buying and selling goods, events such as the birth of a baby
or the death of a person, and circumstances such as the location of adjacent yards or adjacent houses.
Because binding matters always exist in people's lives, the legislators or society are recognized and given
legal consequences. Engagements between one person and another give rise to legal relations. A bond
is said to have occurred if two or more people bind themselves carrying out an achievement, one party has
the right to sue the achievement and the other party obliged to fulfill performance.
Achievement is an obligation that must be fulfilled in the engagement. Fulfillment of achievements
is the essence of engagement, so that the form of achievement is giving something, doing something or not
doing anything. On the other hand, if you don't carry it out, it's called default.

2.2. Defination Good service.

The government as a state organization is obliged to meet the needs of society and government
activities. Public services are related to increasing the government's capacity and ability to carry out
service functions to the community, which in the context of an economic approach is providing the basic
needs of the community.
The level of socio-economic development of society is closely related to economic growth,
industrialization and political change. The results of economic growth and industrialization are related to
community participation which drives that growth, and must be distributed and allocated fairly and evenly
to every member of society.
 Arranging distribution and allocation is the government's duty as a manifestation of its function as a
public servant. One of the needs of society and government administration is the procurement of
goods/services provided in public services, called public goods. Markets cannot provide public goods and
governments can solve this problem by providing them themselves or providing incentives to private
parties to produce them.
The history of government procurement of goods/services begins with direct purchase or sale
transactions of goods on the market. Then it develops towards purchases with payment terms, by creating
accountability documents (buyer and seller), and finally through procurement with an auction process.
Literally the word goods is different from the word services, basically in common sense the term
goods/services is understood and understood physically for goods (form, shape, type) and the form of
services in terms of results in physical form (for example transportation, communication, payment).

The process of procuring goods/services involves several related parties so there needs to be
ethics, norms and principles for procurement of goods and/or services to regulate or serve as a basis
for determining policies for procurement of goods/services. 32The method of purchasing in the market
is by means of direct bargaining between buyers (users) and sellers (suppliers of goods).
If the bargaining process has reached an agreement on the price then it continues with a sale
and purchase transaction, namely where the supplier of the goods hands over the goods to the buyer
and the buyer pays according to the mutually agreed price. If during the order it turns out that the
buyer requires a large number and type of goods, then purchasing the goods directly on the market
will take quite a long time. Therefore, usually the buyer will make a list of the quantity and type of
goods he needs which is then submitted to the goods provider so that the provider submits a written
price offer as well. The written list of goods is the origin of the purchase document, while the written
price offer by the goods provider is the origin of the offer document.33
As development progresses, buyers (users) not only submit a list of goods orders to one goods
provider, but several goods providers so that buyers can choose a cheaper offer price for each type of
goods. This method is the forerunner to procurement of goods by auction.

METHODS.
Soedjono Soekanto and Sri Mamudji classify legal research into 2 (two) types, namely normative
legal research and sociological/empirical research. This research is normative juridical and
empirical.27Normative juridical research refers to statutory regulations using secondary data. Meanwhile,
empirical research uses primary data. This research is empirical research using primary data obtained from
field research. The data used in this research was obtained from two data sources, namely:
1. Primary data source (field data), namely data obtained mainly from direct research in
society.28Data was obtained directly through interviews with officials in the goods/services
procurement section of PDAM Tirtanadi, North Sumatra Province, namely: Officials General
Division, which includes Logistics and Household Sector Officials, and Procurement Services
Unit Officials and Secretaries.
2. Secondary Data Sources are data obtained from the literature, namely by examining legal
materials, namely:
a. Primary legal materials are binding legal materials. 29In the form of legal regulations that
can help in analyzing and understanding this writing problem. In this writing, it is based on
applicable statutory regulations, namely :
1) Civil Code (Civil Code);
2) Presidential Regulation Number 106 of 2007 concerning Government Goods/Services
Procurement Policy Institutions which have been amended by Presidential Regulation
Number 157 of 2014 concerning Amendments to Presidential Regulation Number 106
of 2007.
3) Presidential Regulation Number 54 of 2010 concerning Procurement of Government
Goods/Services which has been amended several times, most recently with Presidential
Regulation Number 4 of 2015 concerning the Fourth Amendment to Presidential
Regulation Number 54 of 2010 concerning Procurement of Government
Goods/Services;
 4) Regulation of the Head of the Government Goods/Services Procurement Policy Agency
Number 14 of 2012 concerning Technical Instructions to Presidential Regulation
Number 70 of 2012 concerning the Second Amendment to Presidential Regulation
Number 54 of 2010;
5) PDAM Tirtanadi Board of Directors Regulation Number 4 of 2012 concerning
Procurement of Goods/Services within PDAM Tirtanadi, North Sumatra Province.
b. Secondary legal materials, in the form of legal literature, magazines, newspapers and
written works that are related to problems in writing
c. Tertiary legal materials, in the form of legal dictionaries, are related to the problems in this
writing.
According to Soerjono Soekanto, in research there are generally 3 (three) types of data collection
tools, namely library materials, observations and interviews. 30To obtain data in research, the following
techniques are used:
1. Document study data or library materials are called secondary data from libraries. 31This means
that in this research, library data will be collected by reading and understanding, then recording
techniques will be carried out by quoting theories and explanations from materials relevant to
the subject matter of this research, both in the form of direct and indirect quotations.
2. Interview technique, namely collecting data to find information by holding verbal questions
and answers directed at certain problems with informants who are guided by a list of questions
that have been prepared in advance. The informant in this research is a Procurement Officer at
PDAM Tirtanadi, North Sumatra Province.
Article 1313 of the Criminal Code determines that an agreement is an act by which one or more
people bind themselves to one or more people. According to Sri Soedewi Masjchoen Sofwan, an
agreement is a legal act in which one or more people bind themselves to another or more people.
According to R. Wirjono Prodjodikoro, an agreement is defined as a legal act regarding assets
between two parties, in which one party promises or is deemed to have promised to do something or not to
do something, while the other party has the right to demand the implementation of that
promise.45According to R. Subekti, an agreement is an event where one person promises to another person
or where two people mutually carry out something.
The relationship between an agreement and an agreement is that the agreement can give rise to an
agreement between the parties entering into the agreement or between the parties agreeing to the
agreement. Agreements are one source of engagement in addition to other sources of engagement. An
agreement is called an agreement or agreement because the parties who make it certainly approve or
approve the contents of the agreement made to carry out a certain achievement.
Engagements that arise because of an agreement are indeed desired by both parties to the agreement.
With an agreement, the parties want an agreement to arise between them and in general this agreement will
be terminated or will be terminated if the agreed performance has been fulfilled. In the KUHPdt, the word
agreement is not used, but rather agreement, in Article 1338 of the KUHPdt it is stated that all agreements
made legally are valid as law for those who make them.
Starting from Article 1338 of the Criminal Code, the principle of freedom does not mean that there
are no restrictions at all, but rather that a person's freedom to make an agreement is only as long as the
agreement they make does not conflict with morality, public order and the law as mentioned in Article
1337 of the Criminal Code.
The party who has the right to demand an achievement is usually called the creditor or the party in
debt, while the other party who is obliged to fulfill the claim is called the debtor or party in debt. The
relationship between two parties or two people as mentioned above is an event that creates a legal
relationship in the sense that the rights owned by the creditor are guaranteed and protected by law or by
statute. If the creditor's demands are not immediately fulfilled by the debtor voluntarily as agreed, the
creditor can claim his rights through court.
The development of the globalization era has had an influence, one of which is in the
implementation of business cooperation carried out by business actors through agreements outlined in the
form of written agreements or contracts.47Ewan Macintyre, stated that a contract is a legally binding
agreement. In order for a contract to be created, one of the parties must make an offer to the other party
and the other party must accept this offer. 48It can be interpreted that a contract is a legally binding
agreement. In order for a contract to be created, one party must make an offer to the other party and the
other party must accept this offer.
 Contracts can be used as a basis for parties to file a lawsuit if one of the parties does not carry out
what was agreed in the contract or agreement. Muhammad Syaifuddin, Contract Law (Understanding
Contracts from the Perspective of Philosophy, Theory, Dogmatics and Legal Practice, Mandar Maju,
Bandung, 2012, p. 1.
The terms contract or agreement are often understood to have different meanings, but in the Civil
Code, the two terms do not have different meanings. According to Agus Yudha Hernoko, from the
perspective of the Civil Code, the term agreement has the same meaning as contract. 49Contracts in the
Civil Code do not regulate contracts in which both parties have mutual performance. Apart from that, the
definition of contract has too broad a meaning and does not provide a firm and concrete understanding.
According to Charless L. Knapp and Nathan M. Crystal, a contract is an agreement between two or
more people not merely a shared belief, but a common understanding as to something that is to be done in
the future by one or both of them.50This means that a contract is an agreement between two or more people
not only about shared beliefs, but also a shared understanding as to something that must be done in the
future by both parties.
Trietel stated that the contract is an agreement giving rise to obligations which are enforced or
recognized by law.51Which means a contract is an agreement that gives rise to obligations that are
enforced or recognized by law. Meanwhile, according to Clive Turner, a contract is an agreement
made between two or more parties, whereby legal rights and obligations are created which the law
will be enforced.52According to Clive, a contract is an agreement made between two or more parties,
with this the legal rights and obligations created will be enforced.
According to Herlin Budiono, a contract or agreement is a legal act that gives rise to, changes,
eliminates rights or gives rise to a legal relationship. In this way, a contract or agreement gives rise to
legal consequences which is the aim of the parties. In the development of legal science doctrine, there
are three elements in an agreement, namely:
1. Essential elements
This element in the agreement represents provisions in the form of achievements that
must be carried out by one or more parties, the nature of the agreement, which
differentiates it principles of other types of agreements. The essential element should
be the difference between one agreement and another agreement.
2. Natural elements
Naturalia elements are elements that are certain to be present in a particular agreement,
once the essential elements are known for certain.
3. Accidental elements
Accidental elements are complementary elements in an agreement, which are provisions
that can be arranged differently by the parties, in accordance with the wishes of the parties,
which are special requirements determined jointly by the parties. Thus, this element is not
essentially a form of achievement that must be implemented or fulfilled by the parties.
A contract must fulfill the legal requirements for an agreement regulated in Article 1320 The
Civil Code states that for an agreement to be valid, 4 (four) conditions are required, namely:
1. The parties have agreed to enter into an agreement;
2. The parties are competent to enter into an agreement;
3. There are certain things that are agreed upon;
4. the agreement.
Terms of a binding agreement and requirements for skill in making an agreement called subjective
requirements, namely the requirements of the legal subject or person. Meanwhile, the terms of a thing
certain and a lawful cause is an objective requirement, namely a requirement for a legal object
or the thing.
 Procurement of goods/services begins with a purchase/sale of goods/services transaction.
Basically, procurement of goods/services is the user's effort to obtain goods/services required, using
certain methods and processes to reach an agreement price, time and other agreements.
Procurement of goods/services is an area of civil law if it does not contain elements deliberate
loss to the state. Procurement of goods/services activities are categorized as civil acts because it is in
the form of an agreement between the government as the employer and the provider goods/services.
In an agreement, one form of consensual in a written agreement and/or contract is the affixing
of the signature of the party involved in the agreement. Apart from functioning as a form of
agreement/agreement on the place, time and contents of the agreement, the signature is also related to
the intention of the parties to make the contract as proof of an event.
Based on the formulation of Article 1 number 22 of Presidential Decree Number 4 of 2015, it
shows contracts for the procurement of goods/services by the government must be stated in the form of a
written contract.
The contents of the contract are an important part which is the subject of a contract/agreement
itself. In the content section, the parties include all matters or points that are considered necessary and
constitutes the wishes of the parties as a valid written statement. As a principal agreement, is expected
to cover and contain all the contents of the agreement that must be fulfilled by the parties and contains
details regarding the object of the agreement, rights And obligations, as well as a complete description
of achievements.
Contracts for the procurement of goods and services must at least contain the following
provisions: following:
1. The parties signing the contract include name, position and address;
2. The principal of the work agreed with a clear description of the type and quantity of
goods agreed;
3. Rights and obligations of the parties bound by the agreement;
4. The value/price of the work contract, as well as payment terms;
5. Clear and detailed technical requirements and specifications;
6. Place and time period for completion/delivery, accompanied by a definite time
schedule for completion/delivery and conditions for delivery;\
7. Technical guarantee/results of work carried out;
8. Provisions regarding breach of contract and sanctions in the event that the parties do
not fulfill their obligations;
9. Provisions regarding unilateral termination of the contract;
10. Provisions regarding force majeure;
11. Provisions regarding the obligations of the parties in the event of failure to carry out
work;
12. Provisions regarding labor protection;
13. Provisions regarding the form and responsibility for environmental disturbances;
14. Provisions regarding dispute resolution.
Procurement of goods/services or procurement can be interpreted as an explanation of the
stages preparation, determination and implementation or administration of tenders for the procurement of
goods, scope work or other services. Goods/services procurement activities are not only selection
activities partners with the purchasing department or official agreement between both parties only, but
includes the entire process from the beginning of planning, preparation, licensing, determining the tender
winner to at the implementation stage and administrative process in the procurement of goods, works
or services such as technical consulting services, financial consulting services, legal consulting
services or other services.
Government procurement of goods/services covers three legal areas, namely:
1. State Administrative Law or State Administrative Law regulates the legal relationship
between providers and users of goods/services from the preparation process to the issuance
of a letter of determination as a provider of goods/services;
 2. Civil Law, regulates the legal relationship between providers and users of goods/services
from signing until the end of the contract;
3. Criminal Law, regulates the legal relationship between providers and users of
goods/services from the procurement preparation process until the completion of the
procurement contract.
In the framework of goods/services procurement activities, the government has a very big influence
because apart from being a budget designer, the government is also a buyer of goods/services from
providers of goods/services that will be carried out, but the government does not has absolute
authority.72Procurement of goods/services in the government includes all procurement contracts
between the government (government ministries, state-owned enterprises, and other state institutions)
and companies (whether state-owned or private) and even individuals.
In goods/services procurement activities, agreements are made by the Government, represented
by the PPK, with the goods/services provider. A binding agreement on the contract between PPK and
the goods/services provider occurs in writing with the signing of the goods/services procurement
contract. Both parties make an agreement which contains the rights and obligations of each party.

RESULT A LEGAL SANCTIONS FOR BREACH OF GOODS AND SERVICES

PROCUREMENT CONTRACT BETWEEN PDAM TIRTANADI, NORTH SUMATRA
PROVINCE
4.1. Scope of Performance, Default and Disputes in Contract Implementation
Achievement is something that debtors must fulfill in every engagement. Achievement is the
object of the engagement. In civil law, the obligation to fulfill achievements is accompanied by
collateral for the debtor's assets. Based on Article 1234 of the Civil Code, it explains the achievements
or methods of carrying out obligations in the form of:
1. Give something away;
2. Do something; And
3. Didn't do anything.
Based on the three ways of carrying out these obligations, it can be seen that the form of
achievement is in the form of goods/services (energy or expertise) and not doing something. If the
parties do not carry out their performance in accordance with what was agreed, it can be considered a
default.
Default is a form of translation from the Dutch word wanprestatie which means failure to fulfill
obligations that have been stipulated in an agreement, whether the agreement arises from law or from an
agreement. There are two possible reasons for non-fulfillment of these obligations, namely:
1. Due to the debtor's fault, whether intentional or negligent.
2. Due to force majeure, that is, beyond the debtor's ability, meaning the debtor is not at fault.
3. From this formulation, default is a situation where someone does not fulfill obligations to
carry out the contents of previously agreed agreements has been made properly and
correctly, so that it can be said to have achieved good performance bad.
According to the Law Dictionary, breach of contract is negligence, neglect, breach of contract,
failure to fulfill one's obligations in a contract. Default can be interpreted as a situation in which a
debtor does not carry out the performance required in a contract, which can arise due to the debtor's
own intention or negligence and the presence of force circumstances (overmacht).
According to Munir Fuady, a default is the failure to carry out an achievement or obligations as
properly imposed by the contract parties specified in the contract, which is a deviation from the
implementation of the contract, resulting in losses caused by errors by one or the other party.
Article 1238 of the Civil Code states: The debtor is negligent if he does not comply with the letter
order or with a similar deed has been declared negligent, or for the sake of the obligation itself, is if he
determines that the debtor will be considered negligent by passing it specified time. The formulation
of this article explains when someone is considered to be in default in an agreement.
 The Civil Code does not explain when someone is considered to be in default. Through formulation
Article 1234 of the Civil Code states that achievement is someone who delivers something, doing
something, and not doing something, otherwise is considered a default when somebody :
1. Not doing what he said he would do;
2. Carrying out what he promised, but not as promised;
3. Did what was promised but was late;
4. Doing something that according to the agreement you are not allowed to do.
Determining when a default occurs in the form of non-fulfillment of achievements and carry out
achievements but not on time, because the parties generally do not determine expressly the time to carry
out the achievements promised in the agreed contract the parties.
To determine the occurrence of default in the form of carrying out achievements but not as
appropriate, if the parties do not concretely determine the achievements should be implemented in the
contract they made.
Defaults will be more easy determined when carrying out acts prohibited by the contract,
because if a debtor or party who has an obligation to carry out performance in the contract carry out
an act prohibited by the contract, then the party does not carry it out his achievements.
Default can occur in two ways, namely:
1. Notification or summons, that is, if the agreement does not specify a certain time when
someone is declared in default or the agreement does not specify a certain time limit to
be used as a benchmark for the debtor's default, there must be prior notification to the
debtor regarding his negligence or default.
2. In accordance with the agreement, if the agreement stipulates a time period for
fulfilling the agreement and the debtor does not fulfill it within that time, he has
defaulted.
In the event that the debtor or party who has the obligation to carry out performance in
the contract but defaults, the creditor or party who has the right to receive the performance can
choose and submit a claim for rights based on Article 1267 of the Civil Code, there are five
possibilities as follows:

1. Fulfill/implement agreements;
2. Fulfilling the agreement is accompanied by the obligation to pay compensation;
3. Pay compensation;
4. Cancel the agreement; And
5. Canceling the agreement is accompanied by compensation.

Compensation for the party who defaults must be in accordance with the agreement stated in the
agreement. An agreement is a form of agreement between two or more parties, who mutually promise to
bind themselves to do something. Therefore, this agreement is very important, so that in its
implementation it should always be made in written form so that it has legal force and legal certainty.
According to the Civil Code, the definition of loss is a real loss that can be expected or estimated by
the parties when they make a contract, which arises as a result of a default. The necessity of a direct and
concrete causal relationship between real losses and default is confirmed in Article 1248 of the Civil Code
that if the contract is not fulfilled it is caused by the debtor's deception, compensation for costs, losses and
interest is only related to the losses suffered by the creditor and the profits lost to him. , consists only of
what is a direct result of non-fulfillment of the contract.
Compensation is an effort to recover losses whose performance is subsidiary. This means that if
fulfilling achievements is no longer possible or is no longer possible expected again, then compensation
is an alternative that creditors can choose. Compensation consists of:
 1. Compensatory compensation is compensation resulting from the lack of performance
that should be the creditor's right;
2. Complementary compensation is compensation as a result of delays or failure to fulfill
the debtor's performance as expected or due to termination of the contract.
In Article 1246 of the Civil Code, there are three components of compensation, namely:
1. Costs (consistent), namely all expenses or costs that have actually been incurred;
2. Loss (schaden), namely loss due to damage to goods belonging to creditors or parties who
have the right to receive performance, which is caused by negligence of the debtor or party
who has the obligation to carry out performance in the contract;
3. Interest (interest), namely profits that should be obtained or expected by creditors or
parties who have an obligation to carry out performance in the contract turns out to be
negligent in carrying out the performance promised in the contract.
Not all losses can be sought for compensation. Losses that can be paid as a result of default are:
1. Losses that were foreseeable at the time the contract was made
Based on Article 1247 of the Civil Code, the debtor or party who has the obligation to
carry out performance in the contract is only obliged to pay compensation for losses which
he actually had or could have foreseen at the time the contract was made, unless the non-
performance of the contract was due to deception on his part.
2. Losses as a direct result of default
In Article 1248 of the Civil Code, it means that if the contract is not implemented due to the
deception of the debtor or party who has the obligation to carry out performance in the
contract.

4.2. Legal Sanctions for Violation of Goods/Services Procurement Contracts

In a contract that has been agreed upon by the parties, it does not rule out the possibility of
disputes/disputes occurring in the course of the work that has been agreed between the parties.
Conflict occurs when parties with different views or attitudes want change to occur in different ways,
or when they prevent that change.
The emergence of disputes originates from situations and conditions that make one party feel
disadvantaged by the other party. Dispute is the existence of incompatibility between individuals or group
that enters into a relationship, because the rights of one of the two parties are disturbed.According to
Salim HS, conflict is disagreement, dispute, or quarrel occurs between one party and another party or
between one party and various parties relating to something of value, whether in the form of money or
object. Disputes that occur can be due to intentional or unintentional actions. Disputes arise from
situations and conditions that make one party feel disadvantaged by the other party.
In general, disputes start from feelings of dissatisfaction experienced by individuals or groups.
If feelings of dissatisfaction are conveyed to the second party and the second party responds and can
satisfy the first party, then the conflict is over. However, if differences continue, disputes will occur.A
dispute in the everyday sense is a situation where the parties carrying out business have a problem, namely
wanting another party to do or not do something, but the other party refuses.
A dispute is a disharmony between individuals or groups in a relationship, because the rights
of one of the two parties are disturbed or violated. According to FX Suhardana, contract legal disputes
can arise if the contract is problematic due to the following:
1. There are reasons why people avoid carrying out contracts, because:
a. The formulation of the agreement in the contract is not reflected because there are
errors, misinterpretations due to fraud, coercion by one party between two parties; And
b. The contract does not meet the statutory requirements that require the contract to be
in a certain form (constitute a formal contract).
2. There are several errors that occur in the practice of contract law, either unilaterally or
mutually, namely:
a. One party makes a mistake about a fact and the other party knows or at least should
know that a mistake has occurred;
b. An error occurs due to an administrative or mathematical error; And
c. Mistakes are very fatal, so that the implementation of the contract will deviate from
the sense of justice because there is a party who is disadvantaged.
 If it is connected between legal disputes and contracts, the meaning of contract legal disputes is
a condition where there is a disagreement or difference of opinion between the parties making a
contract regarding the law and facts related to non-fulfillment of rights or non-implementation of
obligations specified in the contract and/or changes in content (performance). ) specified in the
contract and/or termination of contractual legal relations carried out by one party without the consent
of the other party.
Contract legal disputes begin with a feeling of dissatisfaction from one party, because another
party does not fulfill the performance as promised in the contract or one party defaults. The
occurrence of a default by one party gives rise to the right for the other party to the contract to
demand compensation with or without termination of the contract from the party who has defaulted.
Compensation is one of the principles contained in the procurement contract, because the
agreed contract does not rule out the possibility of acts of default. Compensation gives the right to
each injured party to claim compensation for non-fulfillment or violation or neglect of a provision in
the contract by the other party.
This also happens in giving fines to providers who miss the work completion time. The
employer feels dissatisfied with providers who do not fulfill their performance according to the
agreed time, so the employer imposes sanctions in the form of fines which in implementation often
give rise to disputes.
In Article 90 paragraph (2) of the Decree of the Directors of the Tirtanadi Regional Drinking
Water Company, North Sumatra Province Number 04/KPTS/2012, it is stated that in the event that
the contract is terminated due to an error by the goods/service provider, then:

1. Implementation guarantee is disbursed;

2. The remainder of the down payment must be paid by the goods/service provider or the
down payment guarantee is disbursed;
3. Goods/services providers pay fines; and/or
4. Providers of goods/services are blacklisted.
This is in line with Article 18 of the contract, namely that the Buyer has the right to terminate
the contract unilaterally and include the Seller in the blacklist of the Tirtanadi Regional Drinking
Water Company and cannot procure goods/services within the Tirtanadi PDAM for 2 years from the
issuance of the Black List Letter.

CONCLUSION.
Conclusion Of this Paper are:

1. Procurement of goods and services at PDAM Tirtanadi, North Sumatra is based on statutory
regulations with the principles of efficiency, effectiveness, transparency, openness,
competition, fairness/non-discrimination and accountability in accordance with Presidential
Decree Number 16 of 2018 and Decree of the Directors of PDAM Tirtanadi, North Sumatra
Province Number 04/KPTS/ 2012 concerning Guidelines for Procurement of Goods/Services
within PDAM Tirtanadi, North Sumatra Province.
2. In contract Number KRK-113/PL/UMM/X/2019 between PDAM Tirtanadi, North
Sumatra Province and CV. Kumita Rizky to carry out the procurement work package of
28,000 Kg of non-iodized industrial salt for the Hamparan Perak IPA as the basis for
implementing the goods/services procurement contract between the two parties which
regulates the scope of the contract and procurement of goods, the implementation period
for supplying goods, the sale and purchase price of goods, delivery of goods, inspection
and testing of goods, billing and payment procedures, change orders, release of
responsibility, transfer and subcontract, invalidity, confidentiality and publication,
consequences of contract implementation, delays in supplying and delivering goods, fines
for delays, force majeure events, termination due to negligence, termination due to
bankruptcy, forced termination, contract addendum, dispute resolution and applicable law,
language, notice, and closing.
3. Problems in procurement of goods/services between PDAM Tirtanadi, North Sumatra
Province and CV. Kumita Rizky, is the provider who is unable to provide/supply non-
iodized industrial salt according to the specified specifications until the contract expires.
Regarding this matter, PPK has written to the provider 2 (two) times and did not get a
definite answer as to the cause of the delay.
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