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The Design Of Project Risk Management To Mitigate Project Delay In the Onshore Construction Industry (Case: Shore Protection Project)CTION INDUSTRY (CASE: SHORE PROTECTION PROJECT) Muhammad, Firdaus Yusri; Yudoko, Gatot; Hanafi, Muhammad
Journal of Business Social and Technology Vol. 6 No. 2 (2025): Journal of Business, Social and Technology
Publisher : Politeknik Siber Cerdika Internasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59261/jbt.v6i2.518

Abstract

This study aims to design a project risk management system to mitigate delays in the land-based construction industry, using a case study of the PT Sabar Sejahtera coastal protection project. The project experienced a three-month delay, resulting in financial losses and lost business opportunities due to a lump-sum contract. The methods employed included both qualitative and quantitative approaches, with primary data collected through focus group discussions with project stakeholders and secondary data sourced from internal company documents. Root cause analysis used a Current Reality Tree (CRT) to identify the causes of delays, while solutions were visualized through a Future Reality Tree (FRT). Risk evaluation was conducted using a Failure Mode and Effects Analysis (FMEA) to calculate the Risk Priority Number (RPN), as well as the application of a risk management framework based on the PMBOK 6th Edition. The results showed that the leading causes of delays were systematic errors at the tendering and planning stages, as well as the unavailability of a risk mitigation plan. These two factors caused a domino effect on procurement, equipment, schedules, and the confidence of the main contractor. Proposed solutions included improving the tendering and planning system by involving various departments early and implementing the complete PMBOK risk management cycle. The implications of this study highlight the importance of a structured risk management system in preventing similar project delays in the future. This study also provides strategic guidance for improving the efficiency and control of construction projects in complex work environments.
The Design Of Project Risk Management To Mitigate Project Delay In the Onshore Construction Industry (Case: Shore Protection Project)CTION INDUSTRY (CASE: SHORE PROTECTION PROJECT) Muhammad, Firdaus Yusri; Yudoko, Gatot; Hanafi, Muhammad
Journal of Business Social and Technology Vol. 6 No. 2 (2025): Journal of Business, Social and Technology
Publisher : Politeknik Siber Cerdika Internasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59261/jbt.v6i2.518

Abstract

This study aims to design a project risk management system to mitigate delays in the land-based construction industry, using a case study of the PT Sabar Sejahtera coastal protection project. The project experienced a three-month delay, resulting in financial losses and lost business opportunities due to a lump-sum contract. The methods employed included both qualitative and quantitative approaches, with primary data collected through focus group discussions with project stakeholders and secondary data sourced from internal company documents. Root cause analysis used a Current Reality Tree (CRT) to identify the causes of delays, while solutions were visualized through a Future Reality Tree (FRT). Risk evaluation was conducted using a Failure Mode and Effects Analysis (FMEA) to calculate the Risk Priority Number (RPN), as well as the application of a risk management framework based on the PMBOK 6th Edition. The results showed that the leading causes of delays were systematic errors at the tendering and planning stages, as well as the unavailability of a risk mitigation plan. These two factors caused a domino effect on procurement, equipment, schedules, and the confidence of the main contractor. Proposed solutions included improving the tendering and planning system by involving various departments early and implementing the complete PMBOK risk management cycle. The implications of this study highlight the importance of a structured risk management system in preventing similar project delays in the future. This study also provides strategic guidance for improving the efficiency and control of construction projects in complex work environments.
Design of Project Risk Management to Mitigate Project Delay in the Onshore Construction Industry Muhammad, Firdaus Yusri; Yudoko, Gatot; Hanafi, Muhammad
Journal of Business Social and Technology Vol. 6 No. 2 (2025): Journal of Business, Social and Technology
Publisher : Politeknik Siber Cerdika Internasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59261/jbt.v6i2.518

Abstract

Background: Project delays remain a critical issue in the land-based construction industry, often leading to financial losses and missed business opportunities, particularly under lump-sum contract schemes. The coastal protection project undertaken by PT Sabar Sejahtera experienced a three-month delay, indicating weaknesses in risk management practices during the early stages of the project. Aims: This study aims to design a structured project risk management system to mitigate schedule delays in land-based construction projects through a case study of the PT Sabar Sejahtera coastal protection project. Methods: A mixed-method approach combining qualitative and quantitative techniques was employed. Primary data were collected through focus group discussions (FGDs) with key project stakeholders, while secondary data were obtained from internal company documents. Root cause analysis was conducted using a Current Reality Tree (CRT) to identify the main causes of project delays, and proposed solutions were developed using a Future Reality Tree (FRT). Risk evaluation was performed using Failure Mode and Effects Analysis (FMEA) to calculate the Risk Priority Number (RPN), supported by the application of a project risk management framework based on the PMBOK 6th Edition. Result: The findings indicate that the primary causes of project delays were systematic errors during the tendering and planning stages, as well as the absence of a formal risk mitigation plan. These factors generated a domino effect that adversely affected procurement processes, equipment availability, project scheduling, and the main contractor’s confidence. Conclusion: The study concludes that implementing an integrated and comprehensive risk management system from the early stages of a project is essential to prevent similar delays in the future. Enhancing tendering and planning processes through early cross-departmental involvement and applying the full PMBOK risk management cycle can significantly improve project efficiency and control in complex construction environments.