Risk Management Analysis On New Road Construction In South Kalimantan Province

Abstract

The risks that may occur to new road construction are more complex compared to the road overlay project. So it needs analysis of risk management in the construction of new roads in South Kalimantan Province. The purpose of this research is to identify risks, analyze dominant risks, and determine risk mitigation strategies on new road construction projects in South Kalimantan Province. This research was conducted with questionnaires and interviews with various respondents who are experts and have competence related to the construction of new roads in South Kalimantan Province. Questionnaires are used to identify dominant risks. While interviews are conducted for brainstorming in determining risk mitigation actions and risk mitigation strategies. The results of the research indicate that there are seven sources of risk identified such as environmental, planning, economics and financial, natural, project, technical, human, and safety. From these sources of risk are identified 40 risks. The dominant risk of the project delays that identified were 27 (67.5%) risk and dominant risk to the financial losses identified 24 (60%) risk. To determine risk mitigation, the dominant risks that have been identified are classified based on the project stage. Risk mitigation are then analyzed to determine risk mitigation strategies. There are nine risk mitigation strategies that can be carried out, such as adjusting the budget and implementation time to the project needs, improving the planning quality, determining the method of implementation that is most suitable to the needs in the field, conformity to provider qualifications, strengthening supply chains and asserting agreements with suppliers and subcontractors, maintenance of materials and equipment, tightening supervision, increasing coordination between project owners, supervisory consultants, and project implementers, and strengthening worker management and project implementation.