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Saudi Journal of Business and Management Studies (SJBMS)
Volume-4 | Issue-01 | 28-40
Original Research Article
Probabilities of Failures in Construction Works Completion in Governmental Institutions, an Analysis on the Causing Factors
Agus Sunarya Sulaeman, Vissia Dewi Haptari
Published : Jan. 16, 2019
DOI : 10.36348/sjbms.2019.v04i01.005
Abstract
There are always goods/services procurements each year in governmental institutions, both central and local governments. However, there are often failures in the completion, causing the work progresses slowly, the quality is not well-controlled, the contract is terminated, and some works are even abandoned. The research’s object is the probabilities of failures in construction works in governmental institutions, while the respondents were officers of governmental institutions involved or once involved or understanding participations of all parties involved in the construction works. Their involvements were in each of work stages, starting from preparing procurement, contacting procurement committee, making contract, planning, executing, controlling, and completing the work. Competence of the Commitment Making Official (CMO/PPK), technical skills of the contractors, planners, supervisors, and technical teams were factors considered to be playing a role in the failures. In addition, however, managerial skills of the administrators, natural/non-technical conditions, post of the CMO in the organisation, position issues, and period of work were also researched as the other non-ignorable factors that may cause the failures. The data were collected from questionnaires distributed to some selected respondents from various governmental institutions in some provinces in Indonesia. Furthemore, using probit model method, the data were processed and analysed. According to the results, only managerial skills of the administrator, technical skills of the contractor and supervising consultant, skills of the Procurement Service Unit (PSU/ULP) committee, position and period of work of the construction executing team had influence on the probabilities of failures in the construction works completion, while the other factors did not have any significant influence
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