A study of contractor's procurement performance case: PT. Waskita Karya (Persero), Indonesia

Abstract

Construction has become one industrial sector in Indonesia which gives a huge contribution to the national Gross Domestic Product (GDP). Construction markets are normally increasing in every year so that the sector becomes very attractive to the newcomer of the industry. This tendency then definitely makes the level of competition in such field becomes higher and gives rise for construction firm to initiate a better strategy to maintain their corporate growth and reputation. Project procurement which organized by particular client can be considered as a major opportunity and also the first step for construction company to earn revenues and promotion, so the performance of the company to succeed in this activity holds a very important role. Therefore, an initial step would require a proper and effective planning to obtain optimal results. While most of construction firms are only focus on their business activity to increase their value of sales as the indicator of successful performance. Without knowing their own unique selling point and capability, as the result, most of them are unable to maintain their growth, competitiveness and even business survival. Therefore, evaluation of past performance is one of the effective methods as to be a material aspect in order to formulate a better future strategy. The result of past performance will likely determine the company’s unique point and give rise to an opinion for the area which needs to be improved. This study will present the practical of past evaluation in procurement performance through case study.