Identification of Risk Factors Contributing to Cost Overruns in a Toll Road Project

The implementation of development projects is inherently associated with risks, starting from theconstruction phase. The determination to implement effective risk management is key to ensuring thesmooth execution and overall success of the project. Cost conformity is one of the main indicators forclients, as project owners. However, cost-related risks often occur in construction projects. This risk iscommonly referred to as a cost overrun. The larger the scale of a project, the greater the risks involved. Ifthese risks are not properly managed, they may lead to significant impacts—one of which is a costoverrun. A cost overrun occurs when the construction cost of a project, during its implementation phase,exceeds the budget that was set during the initial cost estimation, resulting in substantial financial lossesfor the contractor. This study aims to identify the risk factors that contribute to cost overruns in the Sigli–Banda Aceh toll road construction project. A quantitative approach was employed by distributingquestionnaires to respondents. The responses were then analyzed using statistical methods, includingfrequency index (FI) analysis and severity index (SI) analysis, to assess the level of risk and its impact onproject continuity. The object of this study is the project implementation team involved in the Sigli–BandaAceh toll road construction. The study population consists of 87 individuals, with 47 selected as samples.This study identified nine risk factors affecting the implementation of the Sigli–Banda Aceh toll roadproject. These factors fall into the high and medium risk categories. The findings reveal that the mostdominant risk factor is the increase in material prices, which is categorized as an extreme risk with a valueof 16. This rise in material costs significantly impacts the total project cost and therefore requires specialattention during project planning and risk management.