Analysis of the Influence of Risk Factors on Costs in the Construction of Provincial Road Projects in Banda Aceh

DOI

10.2991/978-94-6463-952-0_4How to use a DOI?

Keywords

Risk Management; Construction Project; Cost Overrun

Abstract

Road construction projects are important in improving regional accessibility and mobility but often face risks that impact cost, time, and quality. The Provincial Road Project in Banda Aceh experienced various obstacles, especially costs, due to suboptimal risk management. This study aims to identify risk factors and assess their level of risk in the project. The research was conducted by distributing a questionnaire to 41 respondents selected using a purposive sampling technique. The validity test showed that 38 out of 55 indicators were valid (r=0.2605), while the reliability test showed that all indicators were reliable with Cronbach Alpha> 0.6. The results indicate that this project’s most significant risk factor is increased fuel costs (X5.5), with a Relative Importance Index (RII) of 0.815. Other major risk factors include design errors (RII = 0.754), cost overruns (RII = 0.708), and uncertainty in government policies (RII = 0.636), all of which have substantial impacts on project costs. These findings highlight the need for robust risk management strategies and effective cross-sector coordination. High-risk elements, such as non-current contractor cash flow (RII = 0.704) and delayed payments for the owner’s terminals (RII = 0.668), undermine financial stability, necessitating improvements in financial management and human resource capabilities. Moderate risks, including customer satisfaction (RII = 0.320) and fluctuations in the exchange rate (RII = 0.378), require continuous monitoring to prevent escalation into more serious threats. Furthermore, enhancing communication and oversight of regulatory and financial risks—particularly government policy (RII = 0.636) and delayed terminal payments (RII = 0.668)—is essential to ensure consistent cash flow and to avoid additional costs resulting from delayed payments or policy uncertainties. Accordingly, regular coordination and implementation of transparent payment systems are critical for mitigating risks associated with project costs.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Henri Henri
AU  - Anita Rauzana
AU  - Alfa Taras Bulba
PY  - 2025
DA  - 2025/12/26
TI  - Analysis of the Influence of Risk Factors on Costs in the Construction of Provincial Road Projects in Banda Aceh
BT  - Proceedings of the 6th Aceh International Symposium on Civil Engineering (AISCE 2025)
PB  - Atlantis Press
SP  - 31
EP  - 40
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6463-952-0_4
DO  - 10.2991/978-94-6463-952-0_4
ID  - Henri2025
ER  -