Identification of design-build project risk factors: contractor’s perspective

Construction and Engineering Management Program, Universitas Agung Podomoro, Jakarta, Indonesia

^* Corresponding author: susy.rostiyanti@podomorouniversity.ac.id

Abstract

Design-build in construction industry becomes one of the project delivery method selected by owner. Light rail transit, mass rapid transit, and stadium renovation are examples of large infrastructure projects which are constructed under design-build approach to save time. In this approach, the design and construction phases are carried out simultaneously by contractor. One of the advantages for owners is that most risks are transferred to the contractors. This paper attempts to discuss contractors’ perspective related to risk factors in design-build project. The aim is to understand potential risk that can lead to an unsuccessful project. A questionnaire is developed that contains six factors with 20 sub-factors related to project risks. The questionnaire is distributed and responded by both state-owned and private enterprises contractors that involved in design-build project. Data are analysed using Significance Indexes method in order to obtain the relative significance of the risk sub-factors. The result shows five influenced sub-factors including project and program management issues that may cause risk to the contractor’s success under design-build project.