Problems affecting contractor cost : a case study in Indonesia | |
| Author | Budhi, Ariono Dhanisworo Indra |
| Call Number | AIT Thesis no.CM-06-14 |
| Subject(s) | Contractors--Indonesia Construction industry--Cost effectiveness |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Construction Engineering and Infrastructure Management, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | As Indonesian contractors perform their business day to day they are subjected to hidden problems affecting their cost. Therefore the main goal of this research is to explain and explore the source cost during construction period specific to Indonesian contractors. The research is conducted with qualitative method: a case study from 6 companies as sample. The research result is that the identified problems are not controlled by the contractor. These problems are hurdle escalation claim, bad intention change order, un-match between BOQ and drawing, and loss from government auditor volume re-measurement. The other problems are happened in finance department including interest rate increment, tax restitution problem, double taxation for interest income, late payment without interest rate compensation and promissory note problem. Serious identified crisis are also happened in legal department: client doesn't pay on time, foreign design hidden error, fail claim to insurance company under CAR policy and permit to build a building without official written evidence from government. These cost harms need to be managed and controlled in integrated corporate management system to avoid unnecessary sub optimization |
| Year | 2006 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Construction Engineering and Infrastructure Management (CM) |
| Chairperson(s) | Chotchai Charoenngam; |
| Examination Committee(s) | Ogunlana, Stephen Olu ;Hadikusumo, Bonaventura H.W. |
| Scholarship Donor(s) | AIT Fellowship; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2006 |