Factors that Influence Contractor’s Risk Response Planning in Controlling Cost of Road Construction Project in Indonesia

Trigunarsyah, Bambang & Putrianti, Nila (2008) Factors that Influence Contractor’s Risk Response Planning in Controlling Cost of Road Construction Project in Indonesia. In Haigh, Richard & Amaratunga, Dilanthi (Eds.) CIB International Conference on Building Education and Research 2008, 11th – 15th February 2008, Heritance Kandalama, Sri Lanka.

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Infrastructure projects, such as road construction, are one of the most important projects In Indonesia. They contribute significantly to the national economic growth. Data from Indonesian Bureau of Statistics shows that budget for road construction project is still the largest compared to other infrastructure projects. Effective cost control in Indonesia’s road infrastructure project need to be done in order to better support the economic development. Controlling cost overrun can be done in several ways. Before-process variance is the most effective way because cost overrun is measured early in the beginning of project phase. This makes contractor can focus to develop option of responses planning to avoid such cost overrun through risk avoidance, risk transfer, risk reduction, or risk absorption. This paper discuss the factors that influence contractor’s risk response planning in controlling and monitoring cost of road construction project in Indonesia. The research was done using case study in two major contractors in Indonesia. Data analysis is done by Analytic Hierarchy Process (AHP) method in order to obtain priority of the factors. The analysis indicates that personnel’s risk attitude as the most influence factor. Risk identification and macro level external factor have the equal rank in second place, and project level external factor is the least influencing factor in construction contractors’ risks response planning.

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ID Code: 13039
Item Type: Conference Paper
Refereed: Yes
Additional Information: Access to the author-version is currently restricted pending permission from the publisher. For more information, please refer to the journal’s website (see hypertext link) or contact the author.
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Keywords: Infrastructure, road, construction, risk response, cost control
ISBN: 9781905732364
Subjects: Australian and New Zealand Standard Research Classification > ENGINEERING (090000) > CIVIL ENGINEERING (090500) > Construction Engineering (090502)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Copyright Owner: Copyright 2008 School of the Built Environment, University of Salford, UK
Deposited On: 19 Mar 2008 00:00
Last Modified: 29 Feb 2012 13:42

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