<![CDATA[The escalation of building material costs represents a critical challenge in construction projects bound by lump sum fixed price contracts, as the entire financial burden of market fluctuations is fully borne by the executing contractor. This study aims to identify the triggering factors behind material cost overruns, systematically categorize the root causes of the problem, and establish a risk management priority scale for the construction of Hospital Building A by PT XYZ in West Jakarta. The research method employed is a qualitative approach utilizing an empirical case study design. Primary data collection was conducted through semi-structured interviews with project management staff, non-participatory field observations, and FMEA method. The data analysis stages were mapped out using a fishbone diagram to trace the root causes, followed by the Failure Mode and Effect Analysis (FMEA) method to determine risk significance through the calculation of the Risk Priority Number (RPN). The results confirm that five main critical risks dominate the top tier of mitigation priorities. The highest ranking is occupied by the delay in updating warehouse inventory administrative data, reaching a peak Risk Priority Number score of 753.30. This is followed sequentially by factors concerning disparities in competency and discipline among foremen (710.89), inaccuracies in material cutting techniques (648.37), limited technical skills of workers in interpreting project shop drawings (545.95), and inadequate physical protection of instant cement and fragile materials against rainwater exposure (533.14). Through the formulation of this priority scale, management is provided with a measurable blueprint for mitigation strategies, emphasizing the reorganization of internal warehouse control systems and strengthening on-site labor supervision to minimize potential budget overruns.]]>
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