The influence of Cost Estimates, Contract Management, Equipment Costs, Material Costs and Labor Costs on Cost Efficiency in Road Infrastructure Development Projects

Abstract

One of the final goals of the project is the achievement of cost performance, therefore good project cost management is needed. Project cost management includes the processes required to ensure that the approved budget is sufficient to complete all work within the project scope. The objectives of the study are: 1) To analyze the variables of cost management performance which predominantly affect the cost performance of the project, and 2) These variables can be applied and considered in the cost management process in order to avoid swelling and deviation of project costs and achieve cost budget efficiency. By using RII analysis, the third highest ranking is number of workers in the maximum period. The second indicator is material technical specifications that are included in the material category and the third, taxes are also included in the material category. Cost estimation affects the cost efficiency of road infrastructure projects at PT X, contract management affects the cost efficiency of road infrastructure projects at PT X, equipment costs affect the cost efficiency of road infrastructure projects at PT X, material costs affect the cost efficiency of infrastructure projects roads in PT X, labor costs affect the cost efficiency of road infrastructure projects at PT X and cost management performance variables, namely cost estimation, contract management, equipment costs, material costs and labor costs collectively on cost efficiency

Keywords: Cost Efficiency, contract management, cost estimation, equipment costs, material costs and labor costs

Article Review Status: Published

Pages: 43-53 (Download PDF)

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