CONSULTING COMPANY XYZ
By
YULHENDRI SAPUTRA 2-3214-035
MASTER’S DEGREE in
MASTER OF BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia AUGUST 2016
Revision after thesis defense on 12 August 2016
yulhendri Saputra STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Yulhendri Saputra
_____________________________________________
Student Date
Approved by:
Prof. Eric Jos Nasution, MBA, M.A, Ph.D
_____________________________________________
Thesis Advisor Date
Dr. Antonius TP. Siahaan, SE., Ak, MM
_____________________________________________
Thesis Co-Advisor Date
Prof. Eric Jos Nasution, MBA, M.A, Ph.D
_____________________________________________
Dean Date
yulhendri Saputra
INFLUENCE OF EPCM CONTRACT TOWARD COST OVER RUN A CASE STUDY OF ENGINEERING
CONSULTING COMPANY XYZ
By
Yulhendri Saputra
Prof. Eric Jos Nasution, MBA, M.A, Ph.D Dr. Antonius TP. Siahaan, SE., Ak, MM
SWISS GERMAN UNIVERSITY
The purpose of this research is to study and analyze the influence of initial stage, design stage, procurement stage, construction stage and final stage on the project cost over run in managing EPCM contract.
The primary data was obtained by using quisionnaires conducted 25 Jun 2016 to 2 Jul 2016 to 104 project managers project, project directors and project supports company XYZ working under network development program. The data was analyzed using Structural Equation Modelling (SEM), ANOVA cross-tabulation and One-Sample-t- test statistical analysis to test hypotheses. The finding on this research is that except design stage all stage from initial, procurement, construction and final stage show positive significant influence on cost over run. However initial stage, and procurement stage are dominant factors in influencing EPCM project cost over run while construction stage and final stage with less influencer factors.
Keywords: initial stage, design stage, procurement stage, construction stage, final stage, EPCM, cost over run.
yulhendri Saputra
© Copyright 2016 by Yulhendri Saputra
All rights reserved
yulhendri Saputra DEDICATION
I dedicate this thesis for my parents, and beloved wife, my son and daughter:
Gading Abiyy Mirza and Bening Hana Syakira, ...to encourage both of you to study with no limit..
yulhendri Saputra ACKNOWLEDGEMENTS
I would like to thank God, Allah SWT for His blessing and guidance. God perfectly know what would happen, and we have been seen in our fate.
I would like to thank you, my thesis advisor Prof. Eric Jos Nasution, MBA, M.A, Ph.D and my co-advisor Dr. Antonius TP. Siahaan, SE., Ak, MM. This happen with thru your support from our discussion, empowering, and pushing me if I got silence, you consistently allowed this paper to be my own work, but steered me in the right the direction whenever you thought I needed it.
I would also like to thank the respondents who were involved in the survey for this research project, Jakarta office, Oman office, India Office, PMO Office Malaysia, Singapore Office, Hongkong Office, Philipine Office, and Pakistan office. We had been eight years in this program and your contribution to this help me to furnish my engineering business knowledge in comprehensively structured.
I wish also to thank to Pak Gembong who has give me a clue to finish this and also all my friends in batch 25 for all your support after we have been learning together for the passed two years, especially in difficult season because autum as well as we were far from our family while we were in Jena, Germany. Special thanks to my friends Dewi, Devy, Deny, P Esto, Wabas, Bu Etna, your chellenge and humor make me stay to complete this study.
yulhendri Saputra TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 9
LIST OF TABLES ... 10
CHAPTER 1 - INTRODUCTION ... 12
1.1 Background ... 12
1.2 Reserach Problem... ... 16
1.3 Reserach Objective... . 17
1.4 Significant study ... .... 17
1.5 Reserach question... ... 18
1.6 Hypothesis ... 19
1.7 This thesis structure ... 19
CHAPTER 2 – LITERATURE REVIEW ... 21
2.1 Definition of Project and Project Management... 21
2.2 Indonesia construction overview ... 22
2.3 Project participant ... 23
2.4 Project Live cycle... 24
2.5 Contract Type ... 25
2.5.1 Traditional Method ... 25
2.5.2 Design and build ... 27
2.5.3 Turnkey ... 33
2.5.4 Joint Ventures ... 34
2.5.5 Consortium ... 37
2.5.6 Partnering ... 38
2.6 EPCM and Project delivery stage ... 42
yulhendri Saputra
2.6.1 FEED ... 42
2.6.2 EPCM ... 45
2.6.3 The service under EPCM contracrt ... 48
2.7 Cost control ... 52
2.7.1 Cost Control EPCM ... 53
2.7.2 Schedule Control ... 56
2.8 Cost over run ... 58
2.8.1 Project Cost Over run ... 63
2.8.2 Managing risk and cost over run ... 64
2.9 Previous study preference ... 65
CHAPTER 3 – RESEARCH METHODS ... 68
3.1 Introduction ... 67
3.2 Research Frame work ... 67
3.1 Research Design ... 68
3.3 Research paradigm ... 69
3.4 Research Questions and hypothesis ... 71
3.5 Population and sample ... 72
3.6 Research data ... 73
3.7 Survey Sampling Method ... 77
3.8 Data analysis ... 79
3.8.1 Descriptive analysis ... 79
3.8.2 Validity and reliability test ... 79
3.8.3 Coefficient of Correlation ... 80
3.9 Structural Equation Modelling (SEM) ... 81
3.10 Path diagram ... 82
CHAPTER 4 – RESULTS AND DISCUSSIONS ... 79
4.1 The Validity and Reliability Test (Pre-Test) on 30 respondents ... 83
4.2 Respondent’s demographic information ... 91
CHAPTER 5 – CONCLUSION AND RECCOMENDATIONS ... 134
5.1 Conclusion ... 134
5.2 Recommendations ... 135
GLOSSARY ... 140
REFERENCES ... 142
CURRICULUM VITAE ... 176
