Critical risk factor affecting cost overrun in highway project of West Sumatera

Abstract

One part of the form of public capital that is collected into investments made by the government is infrastructure. Several types of infrastructure are roads, bridges, irrigation, and others to support economic activities. It can be seen that there is still a slowdown in the implementation of infrastructure development in Indonesia, which is marked by the lack of quality and quantity of infrastructure. Infrastructure work is part of the responsibilities of the construction industry players, which are very dynamic with various threats to be faced. In practice, every construction project contains risks, unless the owner can transfer it to another party. This study aims to identify critical risks that occur in infrastructure development projects, especially roads in West Sumatra which have an impact on cost overruns in their implementation. This research uses literature study, data collection, and questionnaires which are analyzed using quantitative statistical analysis. The findings in this study are the cost overrun factors that occur in the implementation of road projects in West Sumatra which consist of 12 (twelve) critical risk factors. The highest of the twelve delay factors is the lack of experience of contractors who cannot manage a project properly.