The success of construction project implementation is highly dependent on the effectiveness of resource management, particularly the workforce, which constitutes the variable with the highest influence on productivity. This study aims to analyze the optimization of labor utilization in the Denpasar City Tax Office Official Residence Renovation Project to achieve cost and time efficiency. The primary problem addressed is the gap between the standard labor coefficient (Standar Nasional Indonesia/SNI) used in planning and the actual productivity observed in the field. The research method employed is a quantitative descriptive approach with direct observation techniques (time study) conducted over 30 working days to obtain daily labor output data across 20 work items. The data were subsequently processed to derive the actual coefficient, which was then compared to the planned coefficient in the Unit Price Work Analysis (Analisis Harga Satuan Pekerjaan/AHSP). The results indicate that the average actual coefficient was 5–10% lower than the planned coefficient. This optimization yielded a total project cost of IDR 2,465,496,560, representing a saving of IDR 174,504,040.00, or 6.61%, against the planned budget of IDR 2,640,000,600.00. In terms of scheduling, optimal labor utilization succeeded in reducing the critical project duration from 180 days to 174 calendar days. The implications of this study underscore the need for contractors to develop an internal productivity database in order to improve the accuracy of tender cost estimates.
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