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Risk Analysis of Tender Documents on the Execution of Private Construction Work at Badung Regency, Bali Province, Indonesia

Author

Listed:
  • Ni Kadek Sri Ebtha Yuni
  • I Nyoman Norken
  • Dewa Ketut Sudarsana
  • Ida Bagus Putu Adnyana

Abstract

Documents received during the tender, are in the form of drawings, specifications, bill of quantity (BQ), and the general terms of the contract. Tender activity will bring a variety of risks during the project implementation, and this research is done to identify and assessment of risks, mitigating risk and determining the ownership of the dominant risk.The research was conducted on a private building construction project at Badung Regency in Bali, by using a qualitative method and data collection was done through interview, brainstorming with experts and questionnaires. Among the 39 risk identified, 15 risks were obtained from the previous research, and the remaining 24 risks in this research.The results of this risk assessment were that 18 risks (46.2%) categorized into unacceptable, that include- the addition items of work, the drawing does not match with plan, and the changes in the material specifications. Risk assessment fell into the undesirable category that 21 risks (53.8%), including the mismatch information from planners, the arithmetic error, and materials used were not available on the market. Mitigation was done to dominant risk, among others by reassessing, submitting the contract change order, and asking questions. The biggest risk of ownership was the contractor, namely 39 risks with 18 unacceptable and 21 undesirable risks, this mean, problems associated with tender documents should receive the attention to contractors, planner consultants, owners and Quantity Surveyor (QS) consultants. Contractors as the recipient of the biggest risk were expected to increase the competence of those involved in the tender process.

Suggested Citation

  • Ni Kadek Sri Ebtha Yuni & I Nyoman Norken & Dewa Ketut Sudarsana & Ida Bagus Putu Adnyana, 2017. "Risk Analysis of Tender Documents on the Execution of Private Construction Work at Badung Regency, Bali Province, Indonesia," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 10(4), pages 130-130, July.
  • Handle: RePEc:ibn:jsd123:v:10:y:2017:i:4:p:130
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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