Risk Factor Assessment Causing Contract Change Orders in the Double-Double Track Project

The Indonesian government is actively pursuing infrastructure development, with railway projects being a key focus due to their high demand in Jakarta and its surrounding regions. However, the complexity of railway projects often leads to delays and numerous changes, resulting in scope modifications that necessitate change orders, which have negative consequences for the project. Managing these risks effectively is essential to mitigate their impact on project costs and performance. This study proposes a solution through the application of risk management using a qualitative method known as the Probability Impact Matrix, which helps assess the most significant risks leading to change orders. The research aims to identify and assess the risks responsible for contract change orders in the Double-Double Track Development Project. It uses a mixed-method approach, focusing on two main phases: risk identification and risk assessment. The study examines five risk factors, including project-related factors (X1), owner-related factors (X2), contractor-related factors (X3), design-related factors (X4), and external factors (X5). The results demonstrate that all five variables significantly influence changes in project scope, with risk levels ranging from moderate to high. These findings provide valuable insights for project owners, consultants, contractors, and other stakeholders involved in construction project management. The study serves as a reference for decision-making and the implementation of control measures to minimize the negative impact of change orders.

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Publication Details

Journal
Journal Research of Social Science Economics and Management
Published
2024-11-22
DOI
https://doi.org/10.59141/jrssem.v4i4.739
Citations
1
Primary Topic
Construction Project Management and Performance
Type
article
Field-Weighted Citation Impact
0.49
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article

Risk Factor Assessment Causing Contract Change Orders in the Double-Double Track Project

Wisnu Isvara, Anggi Sanjaya
1 citations
Journal Research of Social Science Economics and Management
Construction Project Management and Performance
0.49
article

Risk Factor Assessment Causing Contract Change Orders in the Double-Double Track Project

Wisnu Isvara, Anggi Sanjaya
article en
1 citations

Abstract

The Indonesian government is actively pursuing infrastructure development, with railway projects being a key focus due to their high demand in Jakarta and its surrounding regions. However, the complexity of railway projects often leads to delays and numerous changes, resulting in scope modifications that necessitate change orders, which have negative consequences for the project. Managing these risks effectively is essential to mitigate their impact on project costs and performance. This study proposes a solution through the application of risk management using a qualitative method known as the Probability Impact Matrix, which helps assess the most significant risks leading to change orders. The research aims to identify and assess the risks responsible for contract change orders in the Double-Double Track Development Project. It uses a mixed-method approach, focusing on two main phases: risk identification and risk assessment. The study examines five risk factors, including project-related factors (X1), owner-related factors (X2), contractor-related factors (X3), design-related factors (X4), and external factors (X5). The results demonstrate that all five variables significantly influence changes in project scope, with risk levels ranging from moderate to high. These findings provide valuable insights for project owners, consultants, contractors, and other stakeholders involved in construction project management. The study serves as a reference for decision-making and the implementation of control measures to minimize the negative impact of change orders.

Journal Research of Social Science Economics and ManagementVol. 4(4)
University of Indonesia (ID)
Industry, innovation and infrastructure
Openalex Percentile: Top 29%
Construction Project Management and Performance
0.49
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Risk Factor Assessment Causing Contract Change Orders in the Double-Double Track Project — Wisnu Isvara, Anggi Sanjaya · Journal Research of Social Science Economics and Management (2024) | TGRS Research Map | TGRS