A Study on Drinking Water Distribution Project in Banda Aceh

Abstract

Abstract The goal of a construction project is to be able to carry out the construction project on time with the budget that matches the plan. However, due to several factors, cost overruns often emerge when executing a project. The purpose of this study is to analyze the dominant factor which leads to cost overruns on the drinking water distribution project in Banda Aceh. This study used primary data that were obtained by distributing questionnaires to contractors that are registered in LPJK company association of Aceh in 2020 and have ever been involved in the installation of drinking water pipes in Banda Aceh between 2015-2020. The population of this research was 62 contractors. By using Slovin equations, 54 contractors were selected as a sample of this research for a 5 percentile margin of error. The dominant factor that leads to cost overruns in drinking water distribution projects in Banda Aceh was caused by cost estimation factor with a mean value of 4,417. This indicates that based on the perception of the contractors, the dominant factor which lead to cost overruns in drinking water distribution projects in Banda Aceh was caused by cost estimation factor.