THE ANALYSIS OF THE EFFECT OF INDIRECT COSTS ON THE PERFORMANCE OF CONSTRUCTION PROJECT IMPLEMENTATION

Abstract

The success of a construction project performance can be seen from the timeliness of completion of the implementation of work that has been agreed upon by the owner and contractor. Efforts that can be made to maximize project performance include including overhead costs in the project cost budget plan. Overhead costs are included in indirect costs along with unexpected costs, profits, taxes and others. The fact that occurs in the field in the implementation of the construction of flats within the Ministry of Public Works and Public Housing, implementing contractors who provide offers with indirect costs of ≤ 10% on average there is a change in the time of completion of the implementation of work, while there are some executing contractors who do not offer indirect costs but can complete the work on time. On the basis of the foregoing, it is necessary to conduct research on whether indirect costs affect the performance of the time of implementation of construction projects. Data collection was carried out by distributing questionnaires to respondents involved in the construction of flats within the Ministry of Public Works and Public Housing, namely service users or owners and construction service consultants. Data processing is carried out by statistical analysis methods with the help of SPSS software version 24.