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Construction projects involve many parties and experts such as builders, contractors, designers, and consultants, which causes project arrangements to be complicated with many risks and uncertainties, including legal and financial risks. Legal risks include aspects of contracts, permits, certificates, claims, lawsuits, and sanctions. Conflicts or disputes can arise due to legal risks, which can lead to cost overruns and delays in project schedules. The project manager must be able to mitigate these risks in order to achieve the project objectives. This study uses descriptive qualitative and descriptive analytical methods to provide a detailed description of the research problem. The results showed that the risks adversely affect the legal aspects of construction, time, cost, and quality of the project. Legal risks in construction projects can arise due to several reasons, namely problems with documents and contract articles, lawsuits from third parties, and problems in acquiring project land. Good risk management is required to improve project efficiency, and project performance is improved when the organization can create a high fit between risk exposure and risk management profile.
Lannyati et al. (2024) studied this question.