ANALYZING THE EFFECT OF UNCERTAINTY AND TRANSACTION COST ON PROJECT PERFORMANCE IN CONSTRUCTION PROJECT AT HOUSING AND CIPTA KARYA DIVISION

Dinda, Sazkia Andita (2020) ANALYZING THE EFFECT OF UNCERTAINTY AND TRANSACTION COST ON PROJECT PERFORMANCE IN CONSTRUCTION PROJECT AT HOUSING AND CIPTA KARYA DIVISION. Diploma thesis, Universitas Andalas.

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Abstract

The construction industry is very important in development of a country, because it can increase economic development. The construction project involves many parties, various processes, phases, different stages of work and advice from two sectors, there are government and private sector with the same goals which is the success of the construction project. One of the government services related to construction projects is Dinas Perumahan Rakyat Kawasan Permukiman dan Pertanahan (DPRKPP). The main task of DPRKPP is to carry out the affairs of the city administration in the division of housing and settlement areas and the assistance task. The mission of Dinas Perumahan Rakyat Kawasan Permukiman dan Pertanahan (DPRKPP) are to realize sustainable development of public housing and residential areas, improve the quality of government buildings, and public facilities. This is proven based on infrastructure development that increased from 2017 to 2019.Based on interview with the employee and data obtained from DPRKPP, many problems related to project performance, especially project costs and schedules. According to previous research, the factors that influence construction project performance are the uncertainty and transaction costs of construction projects. Therefore, the aims of this research is to measure and analyze the effect of uncertainty and transaction costs on project performance of construction projects and then propose recommendations to improve the project performance in the DPRKPP. The population in this reserach were employees at DPRKPP and contractor employees with a total of 78 employees and 34 contractors. The data were collected by questionnaire containing the respondent's personal data and the question related indicators of uncertainty, transaction cost and project performance. The method used is PLS-SEM method using Smart-PLS 3 software. The results showed that uncertainty has no significant effect on project performance, uncertainty has a significant effect on transaction costs, transaction costs has a significant effect on project performance and uncertainty has significant effect on project performance through transaction costs. The dimension that most influences the project performance is the uncertainty in the transaction environment and post-contract costs in construction projects.

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