Overview of Dominant Risk for National Road Maintenance Project in Indonesia Under Performance Based Contracts: Contractor’s Prespective

Setiawan, Deni and Wirahadikusumah, Reini and Pribadi, Krishna S. and Lubis, Harun Al Rasyid (2017) Overview of Dominant Risk for National Road Maintenance Project in Indonesia Under Performance Based Contracts: Contractor’s Prespective. In: The 4th International Conference on Engineering, Technology, and Industrial Application 2017: Human-dedicated Sustainable Product and Process Design: Materials, Resources, and Energy, 13 December 2017, Surakarta.

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Abstract

Abstract As a new contract type for road maintenance work in Indonesia, PBC offers potential improvements in road service performance at lower project costs. However, its implementation is still facing challenges, with managing risk as one of the critical issues. Contractors have been the main risk bearers in most road construction and maintenance projects, especially when they are working under higher-risk delivery systems such as Performance Based Contracts (PBC). The purpose of this paper is to review the dominat risks based on case study in five PBC pilot projects in Indonesia. The result of the analysis shows that in PBC’s pilot project, contractor bear dominant risks that impact to increase cost in design phase: Increased costs due to design change and Increased costs due to design errors, in construction phase: increasing volume traffic and overloading, losses due to price estimation error, cost changes due to rework to meet road performance standards, and increased costs due to the scope and amount of work can not be predicted. In maintenance phase: the increasing volume traffic and overloading. The result of the analysis shows that in PBC contract in Indonesia tend to allocate more risks to the contractor.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Risk, performance, contract, roads, maintenance
Subjects: T Technology > T Technology (General)
Depositing User: Perpustakaan Maranatha
Date Deposited: 16 Oct 2019 10:55
Last Modified: 16 Oct 2019 10:55
URI: http://repository.maranatha.edu/id/eprint/27071

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