Critical risk factor affecting project performance in West Sumatera

Abstract

Abstract The construction industry has a very dynamic nature with threats that must be faced. Every construction project, risks must exist and are common except if the owner can transfer them to another party by paying compensation. In order for risk or uncertainty to be controlled and anticipated as early as possible, the risks that exist and potentially cause losses must be managed as well as possible. From the description above, this study aims to identify critical risks factor (CRF) that occur in building projects that have an influence on contractors and analyse important risk factors that occur projects in the province of West Sumatra. The aim of the research was to identify and assess risk factors during the construction phase of construction projects in West Sumatera. Respondents of this study are Contractors, Supervision & Owner. Data retrieval is done by random sampling with a structured questionnaire. Furthermore, all questionnaires that were collected were analysed statistically, using Partial Least Square Structural Equation Modelling (PLS-SEM) with SmartPLS 3.0 program. The results showed the critical risks affecting project performance identified appears to be that the most critical factor is project management risk, material risk, design and architect risk, equipment and also safety risk