Effect Of Risk and Project Management on Performance in Minimizing PLTS Project Disputes

The demand for renewable energy, especially Solar Power Plants (PLTS), continues to increase along with the need for suistainable energy sources. However, PLTS projects face various operational risk and challenges in project management effectiveness that can trigger construction disputes. This study aims to analyze the effect of operational risk and project management effectiveness in minimizing construction disputes in PLTS project, with project performance as an intervening variable. Data were collected through a survey of workers in several PLTS project, then analyzed using the Structural Equation Modeling-Partial Least Square (SEM-PLS) method. The results of the study indicate that operational risk has a significant impact on project performance, which ultimately increases the potential for construction disputes. Project management effectiveness has been shown to play a role in improving project performance and reducing the risk of disputes, with project performance as a mediating variable in the relationship. This research contributes to academics and practitioners in understanding the relationship between risk, project management, and construction disputes. The results are expected to be a guide for project managers in improving efficiency and reducing conflicts in solar power plants projects in the future.