P-ISSN: 2808-5957
E-ISSN: 2808-6724
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2422
RISK MANAGEMENT MATURITY IN CONSTRUCTION SERVICE
COMPANIES ON TIME PERFORMANCE AND ROAD CONSTRUCTION
QUALITY
Abdul Hamid Payapo
*
, Nurmaiyasa Marsaoly, Abdul Gaus
Master of Civil Engineering, Universitas Khairun, Ternate, North Maluku, Indonesia
*
abdulhamidpaya[email protected]
ARTICLE INFO
ABSTRACT
Published: February 10
th
, 2023
The risks that have the most influential impact during the construction work
of the Sp. Dodinga-Sofifi-Akelamo-Payahe-Weda Road Preservation
project in North Maluku Province, are the work environment (the
surrounding conditions of the road (right and left) which are overgrown
with wild plants, so that it looks like the road feels poorly maintained),
equipment (inadequate opererators in operating heavy equipment during
the implementation of work), materials (There is often a shortage of
materials (non-local) because they have to be brought in from outside the
area), methods of carrying out work (Implementation of work not in
accordance with predetermined specifications), human resources, (Human
resources who work cannot coordinate properly and do not produce road
projects that well), financial (Insufficient financial capability of the
contractor and use of unused contract advances for the purposes of project
implementation), and design changes (Frequent design changes by the
owner due to use or function that changed from the initial planning while
the work was being carried out).
Keywords: risk management
maturity, construction, time
performance, quality, Sp. Dodinga-
Sofifi-Akelamo-Payahe-Weda Road
This work is licensed under CC
BY-SA 4.0
INTRODUCTION
Generally, project implementation is faced with three main obstacles, namely cost, time, and
quality. These three constraints can be interpreted as project objectives, which are defined as
costly, on time, and on quality. The success of the project has always been associated with the
extent to which the three goals can be met (Revantoro et al., 2017). Therefore, in connection with
the dynamic characteristics of the project, good project management is needed so that the three
goals can be met (Fewings & Henjewele, 2019). For this reason, a management strategy called
project management is needed. Project management is the process of project management, namely
through the management, allocation, and scheduling of resources in the project to achieve these
goals (Arianie & Puspitasari, 2017).
North Maluku Province is an area with regional development that continues to develop,
especially in the field of transportation facilities (Ralahalu & Jinca, 2013; Tewal et al., 2017). For
this reason, the participation of service providers (Contractors) is needed to support development
in this region, in terms of the success of project activities by taking into account the cost, time and
quality of work. However, the fact is that there are still delays in projects that occur in North
Maluku Province, one of the causes is the lack of good risk management.
The Sp. Dodinga-Sofifi-Akelmo-Payahe-Weda Road Preservation Project is a project that
has a fairly complicated level of complexity because all its work consisting of Engineering,
Procurement, and Construction is fully borne by the contractor or construction service company
Risk Management Maturity in Construction Service Companies on Time Performance and Road
Construction Quality
2423 | I n d o n e s i a n J o u r n a l o f M u l t i d i s c i p l i n a r y S c i e n c e , 2 ( 5 ) , F e b ,
2023
that does it. The amount of work items contained in road preservation projects causes risk factors
that might affect the operation (Chileshe & Yirenkyi-Fianko, 2012; Kassem et al., 2021; Rane et
al., 2021).
Similar research were conducted by various researchers. Abere (2017) studied project
management maturity in Ethiopia. Karunarathne and Kim (2021) studied risk maturity model
applied in South Korea. In addition, Chileshe and Kikwasi (2014) studied risk management in
Tanzania. The researchers were interested in discussing risk maturity and its management in
Indonesia since the variables might be vary due to different environment. Therefore, the
researchers would like to study risk management maturity in construction service companies on
time performance and road construction quality in Indonesia.
METHOD
This research was conducted at the Sp. Dodinga-Sofifi-Akelmo-Payahe-Weda Road
Preservation project site spread across the West Halmahera Regency, Tidore Islands City and
Central Halmahera Regency with a total road work plan of 144 km. Data collection was carried
out by site surveys, supporting data collection and interviews/discussions with the relevant work
units (Satker, Satuan Kerja) and implementing parties (Contractors). The data needed were in the
form of events occurred in the Halmahera Island ring road construction project. The main data
needed were data on respondents' opinions regarding the influence of risks in road construction
work. Data on the opinion of respondents regarding the probability of risk based on the influence
exerted in road construction work.
There are two kinds of variables, namely free variables (X/Independent) and bound variables
(Y/Dependent). In this study, the free variables are Finance (X1), HR (X2), Materials (X3),
Equipment (X4), Work Implementation Methods (X5), Design Changes (X6), and Work
Environment (X7), which are risk factors and bound variables are time performance (Y1) and
quality performance (Y2) of road construction construction.
To obtain data through questionnaires, questions are made that are linked to these variables
with their respective indicators, as shown in Table 2. These questions were posed to the
respondents through questionnaires.
Table 2. Variables (X) and Research Indicators
Variable
Indicator
Statement
Finance (X1)
Financial capability of
contractors (X1.1)
Contractor's underfunded financial capability
Use of contract advances
(X1.2)
Use of contract advances that are not used for
the purposes of project implementation
Working HR cannot
contribute well (X2.1)
Working human resources cannot coordinate
well and do not produce good road projects
Risk Management Maturity in Construction Service Companies on Time Performance and Road
Construction Quality
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2023
Human
Resources (HR)
(X2)
HR has no major
responsibility (X2.2)
Human resources who work do not have a big
responsibility to be able to complete a good
job
HR productivity is quite
low (X2.3)
The productivity of working human resources
is quite low, so a lot of work cannot be
completed on time.
Material (X3)
Material scarcity (X3.1)
There is often a scarcity of material (non-
local) because it must be brought from outside
the area.
Waiting for test results by
owner (X3.2)
Control procedures and waiting for the results
of testing by the owner on a job that will affect
the next work in the implementation of the
project.
Material (X3)
Equipment
(X4)
Limited number of
equipment (X4.1)
Limited number of equipment (heavy
equipment) in the area that can be leased to the
contractor at the time of carrying out the work.
Method of
Execution of
Work (X5)
Job execution does not
comply with specifications
(X5.1)
The execution of the work does not comply
with predetermined specifications.
Method of
Execution of
Work (X5)
The job is not done
properly and correctly
(X5.2)
All work is not done by good and correct
methods according to the provisions.
Frequent design changes
by owner (X6.1)
There are frequent design changes by the
owner due to the use or function that changes
from the initial planning at the time the work
is being carried out.
Design
Changes (X6)
Delay in the process of
changing from planning
(X6.2)
The occurrence of delays in the process of
change from planning at the time of
implementation.
Non-fulfillment of initial
planning (X6.3)
The non-fulfillment of the initial planning that
has been designed by the owner, so that there
is a change in the results carried out by the
contractor.
Working
Environment
(X7)
Road surrounds (X7.1)
The surrounding conditions of the road (right
and left) are overgrown with wild plants, so it
seems that the road feels poorly maintained.
Source: Processed Researchers' Experiences, 2020
Risk Management Maturity in Construction Service Companies on Time Performance and Road
Construction Quality
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2023
To identify risk variables, data analysis was carried out using qualitative methods by
interviewing experts and continued with data analysis with quantitative methods for questionnaire
results data from respondents.
RESULT AND DISCUSSION
Testing the validity of items Finance (X1), Human Resources (X2), Materials (X3),
Equipment (X4), Method of Work Implementation (X5), Design Change (X6), Work Environment
(X7), Target Time (Y1) and Quality Target (Y2) in this study was carried out with SPSS 19
Software for Windows as seen in Table 3.
Table 3. Validity Test Results
Factor
Indicator
r
table
Values
P-Value
Information
Finance (X1)
X1.1
0,576
0,046
Valid
X1.2
0,576
0,003
Valid
Human Resources
(X2)
X2.1
0,576
0,003
Valid
X2.2
0,576
0,001
Valid
X2.3
0,576
0,000
Valid
Material (X3)
X3.1
0,576
0,039
Valid
X3.2
0,576
0,039
Valid
Equipment (X4)
X4.1
0,576
0,000
Valid
Method of
Execution of Work
(X5)
X5.1
0,576
0,004
Valid
X5.2
0,576
0,006
Valid
Design Changes
(X6)
X6.1
0,576
0,000
Valid
X6.2
0,576
0,007
Valid
X6.3
0,576
0,000
Valid
Working
Environment (X7)
X7.1
0,576
0,000
Valid
Timely (Y1)
Y1.1
0,576
0,000
Valid
Y1.2
0,576
0,000
Valid
Precise Quality
(Y2)
Y2.1
0,576
0,000
Valid
Y2.2
0,576
0,000
Valid
Source: SPSS Processed Products, 2020 (Appendix 3)
Table 4. Reliability Test Results
Variable
Cronbach Alpha Coefficient
Finance (X1)
0,682
Risk Management Maturity in Construction Service Companies on Time Performance and Road
Construction Quality
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2023
Human Resources (X2)
0,849
Material (X3)
0,810
Equipment (X4)
0,940
Method of Execution of Work (X5)
0,846
Design Changes (X6)
0,798
Working Environment (X7)
0,892
Target Time (Y1)
0,801
Quality Target (Y2)
0,889
Source: SPSS Processed Products, 2020 (Appendix 4)
From the results of factor extraction which is continued by interpreting the Loading factor of
each item above, it can be seen that the latent variables Financial Variables (X1), Human
Resources (X2), Materials (X3), Equipment (X4), Work Implementation Methods (X5), Design
Changes (X6), Work Environment (X7) can be formed by grouping manifest variables, which are
summarized as follows:
1) Financial Variables (X1): Financial capability of the contractor (X1.1) and Use of
contract advances (X1.2);
2) Human Resources Variables (X2): Working human resources cannot coordinate
properly (X2.1), HR does not have large responsibilities (X2.2), and HR productivity is
quite low (X2.3);
3) Material Variable (X3): Material scarcity (X3.1), and pending test results by owner
(X3.2);
4) Equipment Variable (X4): Limited number of equipment (X4.1);
5) Job Execution Method Variables (X5): Job execution does not meet specifications
(X5.1), and work is not done properly and correctly (X5.2);
6) Design Change Variables (X6): Frequent design changes by owner (X6.1), delays in the
change process from planning (X6.2), and non-fulfillment of initial planning (X6.3).
7) Work Environment Variables (X7), formed with manifest variables consisting of: Road
surroundings (X7.1).
The results of the analysis discussed during this study so that the risks that have the most
influential impact according to the ranking of the order on each variable during the construction
work of the Sp. Dodinga-Sofifi-Akelamo-Payahe-Weda Road Preservation project in North
Maluku Province, are as follows:
1) Work environment a: The surrounding conditions of the road (Right and left) are
overgrown with wild plants, so it seems that the road feels poorly maintained;
2) Equipment: Inadequate opererator personnel in operating heavy equipment during the
execution of work;
3) Material: There is often a scarcity of material (non-local) because it must be brought
from outside the area;
Risk Management Maturity in Construction Service Companies on Time Performance and Road
Construction Quality
2427 | I n d o n e s i a n J o u r n a l o f M u l t i d i s c i p l i n a r y S c i e n c e , 2 ( 5 ) , F e b ,
2023
4) Method of Execution of Work: The execution of the work does not comply with
predetermined specifications;
5) Human resources: Working human resources cannot coordinate well and do not produce
good road projects;
6) Financial: Inadequate financial capability of the contractor and the use of unused
contract advances for the purposes of project implementation; and
7) Design Changes: Frequent design changes by the owner due to use or function that
changes from the initial planning while the work is being carried out.
CONCLUSION
Risk factors that greatly affect the performance of time and quality of construction in the Sp.
Dodinga-Sofifi-Akelamo-Payahe-Weda Road Preservation project are the work environment
(surrounding conditions of the road (right and left) which are overgrown with wild plants, so that
it looks like the road feels poorly maintained), equipment (Inadequate opererator personnel in
operating heavy equipment during the implementation of work), materials (There is often a
shortage of materials (non-local) because they must be brought in from outside the area), methods
of carrying out work (Implementation of work not in accordance with predetermined
specifications), human resources (Working human resources cannot coordinate properly and do
not produce good road projects), financial (insufficient financial capabilities of contractors and
the use of unused contract advances for the benefit of project implementation), and design changes
(Design changes often occur design changes by the owner due to use or function that changes from
the initial planning at the time the work is being carried out).
The advice given by researchers in responding to risk handling is that construction
contractors carry out mitigation, including contractors must choose the number of human resources
that work in accordance with the expertise and needs in carrying out work, in the use of down
payments must be controlled for use in accordance with the designation in the contract document,
the procurement of equipment and equipment operators for work must be in accordance with the
provisions in the contract, the stock of materials in the project implementation must be ensured to
be more mature during pre-construction meetings (PCM) so that it does not become an obstacle
when carrying out work, and the need for more intense socialization about understanding the
implementation of road preservation work.
Future research are expected to discuss deeper in-sight regarding risk maturity. Different
variables might emerge due to different circumstances, especially when the research are conducted
in different areas. Also, hopefully there will be different results to enrich the literature in the topic.
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