International Journal of Engineering Advanced Research eISSN: 2710-7167 [Vol. 4 No. 1 March 2022]
Journal website: http://myjms.mohe.gov.my/index.php/ijear
DEVELOPMENT OF COST PLANNING STANDARDS FOR DESIGN DEVELOPMENT, SITEWORK, STRUCTURE ON
FIELD OF PLAY STADIUM TO ESCALATE COST ACCURACY
Yosendrick Haris Divanta Purba1* and Yusuf Latief2
1 2 Faculty of Engineering, University of Indonesia, Depok, INDONESIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 29 December 2021 Revised date : 15 February 2022 Accepted date : 2 March 2022 Published date : 9 March 2022
To cite this document:
Purba Y. H. D, & Latief, Y. (2022).
DEVELOPMENT OF COST PLANNING STANDARDS FOR DESIGN DEVELOPMENT,
SITEWORK, STRUCTURE ON FIELD OF PLAY STADIUM TO ESCALATE COST ACCURACY. International Journal of Engineering Advanced Research, 4(1), 45-56.
Abstract: Currently there is no standard that regulates cost planning for integrated design contracts in the scope of design development, sitework, and structural work. For example, in the tender or bidding process, the service provider will result in varied costs because there are no papers such as plan drawings and technical specifications hence there is no range of cost accuracy that must be obtained. An integrated design and build contract is a procurement process which is a combination of construction work and construction consulting services so that the procurement process and construction work process may be carried out promptly. Based on the phenomenon that occurs, there are many projects that encounter cost overruns, which causes the accuracy of the estimate to be a significant problem. This study determined what variables and indicators can affect cost accuracy. The object of this research is the field of play stadium in the scope of design development work, sitework, and structure. The method used in this research was literature study, distributing questionnaires, using SPSS and SmartPLS tools, and validating experts. In testing the variables using SmartPLS, the authors received the results of standard costs, non-standard costs, and other costs having a significant effect on cost accuracy.
Keywords: Cost Planning Standards, Field of Play Stadium, Design and Build, Cost Accuracy.
1. Introduction
Standardish Group International (2015) reported in the 2015 CHAOS report that 56% of projects exceeded their budgets from 2011 to 2015. This study found that many projects cost more than planned, resulting in a change in project costs. These cost changes were influenced by factors during the design stage, which was largely due to inaccuracies in initial estimates (Ghallab, AHO and Hosain, MS, 2020). The quality and success of a project are dependent upon accurate estimations (Gilson and Vanreyk, 2014). Over the last four decades, the accuracy of conceptual cost estimates for construction projects has become a major concern (Cheng, M.Y., et al., 2010), resulting in budget overruns as a global phenomenon in existing building projects. The increasing number and volume of infrastructure development, combined with the demand for more efficient work practices, has necessitated the modernization of the national construction work procurement system and project implementation, allowing the government to more easily achieve the number and volume of infrastructure development objectives (Putro, A and Latief, Y 2020). The present integrated design and build contract method is regarded capable of meeting the challenge of expediting the completion of a project. Design and build is a procurement method in which the planning and construction phases are combined into a single contract. The owner uses this technique to ensure that work is completed more quickly and cost effectively while adhering to the appropriate technical specifications (Tarigan A.M, et al 2018; Seng, N.G.W., et al 2006). The design-build contract is an innovative technique or solution that enables difficult work to be completed more quickly and to the specified technical specifications (Seng, et al 2006; CA Umar, AAAF, et al 2020; Tarigan, AM, et al 2018; Adamu, I., et al 2017). However, some construction projects are now under construction using the design and build method but are running behind schedule (CA Umar., A.A.A.F., et al, 2020). Design build issues result in greater costs, increased time, and decreased credibility (Taurno, G.A., Hardjomuljadi, S. 2013), as well as decreased use of the design contract approach and potential losses for service providers as a result of follow-up audit results. Delays in implementation time can increase the cost of the project, causing it to exceed the design budget; delays can also cause owner dissatisfaction, resulting in the project's perceived low quality (Tarigan, A.M, et al, 2018).
2. Literature Review
The chapter will begin with a review of the literature on an integrated contract system for the design and construction of state buildings in the field of play work, then move on to theories that support research models on cost planning standards, and finally look for indicators for each variable that affects cost accuracy rate.
2.1 State Building
State buildings, as defined in Minister of Public Works Regulation No. 22 of 2018, are one of the state-owned assets with strategic value as a location for the process of organizing activities that are regulated and managed to ensure they are functional, reliable, effective, efficient, and carried out in an orderly manner. Construction of state buildings is an activity that involves the stages of technical planning, construction implementation, and supervision, regardless of whether it is new construction, maintenance of existing state buildings, expansion of existing state buildings, or continued construction of existing state buildings. State buildings are classified into three categories: simple buildings, non-simple buildings, and special buildings.
2.2 Design and Build
Design and Build (DB) is a method of project implementation in which the owner contracts for both design and building services from a single legal entity known as the design builder (Faugh, A, and Tran, D, 2015). By consolidating design and construction under a single contracting company, a single point of accountability is created, which can result in improved project performance. This single point of responsibility enables construction to begin prior to the design being completed. Furthermore, this system enables the adaption of design errors without the need for a formal contractual process known as design completion (Park, J. and Kwak, Y.H, 2017). The global construction industry has highlighted the development of an integrated design contract procurement approach. The PUPR Ministerial Regulation No. 12 of 2017 contains provisions relating to design and build integrated construction activity. The purpose of PUPR Ministerial Decree No. 12 of 2017 is to improve the operational, effective, and efficient nature of design and build work.
2.3 Field of Play Stadium
According to Minister of Youth and Sports Regulation No. 400 of 2013, a stadium is a piece of sports infrastructure that must be predominantly used for sporting activities/practices. The stadium is prioritized as a center for athletics and football. However, because the stadium is equipped with stands with sufficient seats for spectators and a reasonably wide arena, it can be used for a variety of non-sports activities, such as music concerts, religious activities, social activities, and other activities that involve visitors. In general, stadium work is separated into three parts: the main stadium building, field of play, and regional work. The field of play zone's scope of work comprises a football field and an athletic track.
2.4 Scope of Work Design Development, Sitework, and Structure
The scope of work describes the tasks that are the contractor's responsibility and must be performed. According to Minister of Public Works Regulation No. 28 of 2016, the scope of work is classified into seven categories, including Design Development, Sitework, and Structural Works. Architectural, mechanical, and electrical work, as well as exterior facilities and additional work, are all included in this category. According to Minister of Public Works Regulation No. 28 of 2016, the scope of work for which this research will be conducted is design development, sitework, and structure. Design development is the outcome of planning (detailed work drawings) for a project's work. Design development can be used to create plans for construction systems and building structures. It can also be used to create plans for actual sizes and dimensions. Throughout the design development phase, the developed concept will be approved and documented to help the owner understand it, to coordinate the work of specialist consultants, to provide an implementation schedule, to attend preliminary meetings with relevant authorities, and to coordinate the preparation of cost estimates for the project. Sitework is work that occurs beyond the scope of the main project or standard work. It may involve land preparation, cleaning, fence construction, land leveling, land filling, temporary roads within the project environment, and utility installation. Structural works are concrete structural works, and comprise foundations, sloof, columns, beams, plates, and roof frames. The structural system's main function is to safely and effectively bear and transmit loads operating on the building to the ground via the foundation.
2.5 Research Variables and Indicators
Three independent variables (X) and one dependent variable (Y) are present, and these variables are represented by indicators. The independent variable (X) in this study is cost accuracy, while the dependent variable (Y) is standard costs, non-standard costs, and other costs.
2.5.1 Standard Cost
Standard costs are used to accomplish standard physical construction, which includes architectural work, structures, utilities such as plumbing, lighting, and network installation, as well as finishing.
Standard costs include construction overhead, insurance, workplace safety, inflation, and applicable taxes. Standard costs in addition to standard construction work, such as construction overhead, insurance, workplace safety, inflation, and applicable taxes. The indications for the standard cost variables used in this study are listed in Table 2.1.
Table 2.1: Standard Cost Indicators and Variables
No Variable Indicator Reference
1 Standard Costs
Work components Jauzy A. (2012); BPSDM PUPR (2016);
Ministry of PUPR (2017)
Technical specifications Fisk, E.R (1992) Ministry of PUPR (2018); PU Ministerial Decree No. 22 of 2018; Ghallab and Hosain (2020);
Area Standard Jauzy A. (2012); BPSDM PUPR (2016);
Ministry of PUPR (2017); PU Candy (2018) Chairs amount UEFA Guide to Quality Stadiums (2011);
Minister of Youth and Sports Regulation No.
0400 of 2013;
The highest unit price for a state building
Jauzy A. (2012); BPSDM PUPR (2016);
Ministry of PUPR (2017)
Construction Cost Index The Wisdom of J. and Idris (2019)
2.5.2 Non Standard Cost
Non-standard costs are those associated with the execution of non-standard physical construction (for which no standard exists), such as permits other than IMB and utility connections. Non- standard costs associated with the execution of non-standard physical construction work: land preparation and maturation, improvement of architectural work on buildings, improvement of building structures on buildings, specifically for building completeness, which includes mechanical and electrical work, and specifically for environmentally friendly buildings (green building). The indicators for the non-standard cost variables used in this study are listed in Table 2.2.
Table 2.2: Non-Standard Cost Indicators and Variables
No Variable Indicator Reference
1 Non Standard Costs
Volume details Jauzy A. (2012); BPSDM PUPR (2016);
Building and environment Kementerian PUPR (2017)
Special function Kementerian PUPR (2017); Permen PU (2018) Support Work Kementerian PUPR (2017); Permen PU No 22 Tahun
2018 Pasal 28 regarding Non-Standard Costs
2.5.3 Additional Costs
Additonal costs are not included in standard or non-standard costs. Examples include the issue of an IMB (Building Permit), internet connection fees, soil investigation testing, and costs of safety.
Table 2.3 contains indicators for additional cost variables considered in this study.
Table 2.3: Additional Costs Indicators and Variables
No Variable Indicator Reference
1 Additional Costs
IMB or PBG Governor Regulation No. 147 of 2018; Herea and Ungureanu (2018); PP No. 16 of 2021
Internet Connection Fee
Rusniati (2020); KOMINFO Decree Candy No. 14 of 2017
Soil Investigation Test
SNI 8460:2017; Rena. M (2011);
Cost of Safety Public Works Ministerial Decree No. 10 of 2021
2.5.4 Cost Accuracy
According to Lim et al. (2016), many studies have been undertaken to determine the factors influencing construction costs and to investigate the significant differences between actual and estimated construction costs. Accuracy in the context of estimation refers to predictions or estimations of project costs for uncertain outcomes (Hollmann, 2014). ASTM International (2017) published a practical guideline, Designation: E2516-11, Standard Classification for Cost Estimate Classification System. This guide is intended to serve as a general methodology for cost estimation classification in industry. The guidelines denote the most critical aspects in classifying estimates.
The classification of estimated costs according to ASTM International is shown in Figure 2.1.
Figure 2.1: Illustration of Accuracy Range for General Building Construction Project Source: ASTM International (2017)
Several studies (Alfredo F, 2005; Mamik R, 2007; Hatamhel, MT, et al., 2018; Pradana &
Miftahul, 2019; Ghallab, AHO, and Hosain, MDS, 2020) demonstrate that the factors affecting uncertainty or Factors affecting cost accuracy are the quality of the scope of work, the quality of the job information, the level of job uncertainty, the estimator's performance. The indications for the cost accuracy variable used in this study are listed in Table 2.4.
Table 2.4: Cost Accuracy Indicators and Variables
No Variable Indicator Reference
1 Cost
Accuracy
Scope quality Alfredo F. (2005); Mamik R. (2007); Pradana &
Miftahul (2019); Hatamhel, M.T., et.al (2018) Information quality Alfredo F. (2005); Mamik R. (2007); Hatamhel,
M.T., et.al (2018); Ghallab, A.H.O., and Hosain, M.D.S., (2020)
Level of job uncertainty Alfredo F. (2005); Mamik R. (2007); Hatamhel, M.T., et.al (2018)
Performance estimator Alfredo F. (2005); Mamik R. (2007);
Hatamhel, M.T., et.al (2018) Estimation Procedure Alfredo F. (2005); Mamik R. (2007)
2.6 Problem Statement
Variables and indicators that can improve cost accuracy are identified through this research. The research objectives in this study include how the relationship between cost accuracy and cost planning standards in the scope of Design Development, Sitework, and Structure work on the Field of Play is based on the Minister of Public Works Regulation No. 22 of 2018. It is envisaged that via the development of this research, the integrated contract system for design and construction that is controlled in Minister of Public Works Regulation No. 1 of 2020 will be accepted and optimized, preventing disputes between the service provider and the owner.
3. Method 3.1 Materials
To determine variables and indicators, this research begins with the collection of secondary data, including literature reviews and archive analysis. Then collect primary data, which includes expert confirmation of the literature study's findings and distribution of questionnaires to respondents.
3.1.1 Samples
Secondary data are collected through literature studies, namely in journals that discuss cost planning standards and how to improve cost accuracy, in order to get the variables and indicators indicated in sub chapter 2.5. The first stage of data collecting was to solicit expert advice on cost accuracy. There are five professionals with more than ten years of expertise and the most recent education is a Master of Engineering. After obtaining agreement and input from experts, move to the second stage of data collection in order to validate the language used in the questionnaire that will be disseminated to the primary respondents in the third stage of data collection. After obtaining the findings of the second stage of data collection, move to the third step of data collection, which involved the distribution of questionnaires to respondents based on the respondent criteria.
1. Minimum education of three years
2. Minimum education S1 (Bachelor) majoring in Civil Engineering / Architecture / Civil and Environmental
3. Have or are currently in construction work
3.1.2 Procedures
The procedure selected for this research is archive analysis, questionnaire-based surveys, statistical analysis using SPSS and SmartPLS tools, and expert validation. The questionnaire that will be used in this study as a research tool. The Research Question (RQ) data collection process is divided into many stages. Prior to performing a pilot survey for the first questionnaire, a review of the archives of prior literature research was conducted to gather material for questionnaire development. The first stage of data collection is to ascertain the elements of standard costs, non- standard costs, and other costs that may affect the accuracy of costs on cost planning standards for the scope of design development work, sitework, and stadium structures by validating content and constructs through interviews and discussions with experts.
3.2 Research Process
Several research methods were used in this study to address the problem formulation, including archive analysis, questionnaires, and expert validation. The study used a questionnaire to collect data from respondents, and then analysed the association between standard cost variables, non- standard costs, and cost accuracy using SEM-PLS and subsequent validation with experts or experts. The data collected will be analysed to create a standard form of cost planning that will be transformed into cost planning standards in accordance with Minister of Public Works Regulation No. 22 of 2018 in order to increase cost accuracy.
3.3 Data Analysis
Following the collection of all data, data analysis is performed. Data analysis was used to ascertain whether the independent factors influenced the dependent variable. The obtained data will be analyzed using the SPSS and SmartPLS tools. Before analyzing the respondent data, a test was undertaken to ensure that the obtained data was usable and met the requirements. The following tests are performed on the respondent's data: data adequacy, homogeneity, validity, reliability, and KMO data adequacy. After the data was validated and found to meet the requirements, the authors analyzed the respondent's data. SmartPLS software was used to conduct the analysis. To ascertain the effect of planning standards on cost accuracy in state buildings, this research is extended by evaluating respondent questionnaire data using the SmartPLS tool after it has been analyzed using the SPSS tool.
3.3.1 Test Validity with SPSS
The product moment Pearson correlation test results in a correlation coefficient which is used to measure the strength of the linear relationship between two variables. The result to be analysed in this test is the Pearson correlation value "r" which can be said to be valid if "r" is greater than the significance where the significance value obtained in the distribution table of the "r" table is 0.24.
It was found that the Pearson value on each indicator was greater than the "r" table = 0.24 where it can be concluded that all data are valid.
3.3.2 Reliability Test (Cronbach’s Alpha) with SPSS
In this study, the reliability test (Cronbach's Alpha) was used to determine the reliability and consistency of the measuring device by measuring the consistency and stability of the responses or data. The researchers used the SPSS tool to conduct a reliability test using the Cronbach's Alpha method under the following conditions:
• Cronbach's Alpha value > 0.06 then reliable
• Cronbach's Alpha value < 0.06 then not reliable
After testing the SPSS software, the results of the reliability test as follows:
Table 3.1 Cronbach's Alpha Value Indicator Reliability Statistics
Cronbach’s Alpha N of Items
0.937 19
Source: Author's Process (2021)
Table 3.1 shows the output of the reliability test of the Cronbach's Alpha method with SPSS software, indicating that the data is very reliable.
3.3.3 Data Sufficiency Test – KMO (Kaiser Meyer Olkin) with SPSS
The KMO & Bartlett test was used to determine the data adequacy in this study, which was conducted using the SPSS program tool. After calculating the KMO and Bartlett, the following findings are obtained:
Table 3.2 KMO & Bartlett Calculation Results on SPSS KMO and Barlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.855 Bartlett’s Test of
Sphericity
Approx. Chi-Square 841.077
Df 171
Sig 0.000
Source: Author’s process (2021)
Table 3.2 shows the results of the analysis of the value of the KMO & Bartlett test. The KMO value is 0.855 where the KMO value is > 0.50 which means that the sample is sufficient.
4. Results and Discussion
Because each indicator (indicator after deletion) has a T-statistic more than 1.96 or a P-Value
< 0.05, they all have a significant effect on the latent variable. Additionally, the following table contains the path coefficient obtained results using bootstrapping to determine the significance of the relationship between variables. Table 4.1 Bootstrapping Results by Path Coefficient.
Table 4.1: T-Statistic Results (Boot Stramping) T- Statistic
Indicator
Original Sample
(O)
Sample Mean
(M) STDEV T Statistic P Values
X1. Standard Cost
→ Accuracy Cost 0.398 0.403 0.126 3.168 0.002 X2. Non Standard
Cost → Accuracy Cost
-0.376 -0.365 0.153 2.452 0.015
X3. Biaya Lain- Lain → Additional
Costs
0.833 0.819 0.122 6.799 0.000
Source: Author’s process (2021)
So, it can be concluded that X1. Standard Cost, X2. Non Standard Costs and X3. Additional costs have a significant effect on Y. Cost Accuracy.
4.1 R Square
R Square is the coefficient of determination that explains how far the dependent data can be explained by independent data. R Square is worth between 0 – 1 with the provision that the closer to 1 (one), the better. R Square is owned by variable Y (dependent variable).
Table 4.2: R Square Results Indicator R Square R Square
Adjusted Y. Cost
Accuracy 0.754 0.742
Source: Author’s process (2021)
From the results of R Square Y. Cost accuracy is 0.754, it can be concluded that the Y variable is influenced by the X variable by 75.4%.
4.2 Model Fit
Model Fit shows how good the model is. The results of the fit model are shown in table 4.2.
Table 4.2: Model Fit Results
Saturated Model Estimated Mode
SRMR 0.109 0.109
d_ULS 2.024 2.024
dG 1.086 1.086
Chi - Square 345.108 345.108
NFI 0.599 0.599
Source: Author's Process (2021)
Thus, based on the NFI value, the fit model for this study is 0.599 or 59.9 %. The following is a relationship model for the Inner Model created with the SmartPLS software:
Figure 4.1 SmartPLS Final Model Source: Author’s process (2021)
5. Conclusion
T-Statistics (Boot Stramping) results are also obtained from Table 4.1 for the mathematical model of the research findings based on the Original Sample (O), namely Y = 0.398 X1 – 0.376 X2 + 0.833 X3. Additionally, the level of accuracy increases if the variable X1 Standard Cost and X3 Additional Cost is increased, and the accuracy rate is also increased if the X2 variable is increased.
Non-Standard Fees reduced.
6. Acknowledgement
I would like to express my gratitude for my parents’ assistance, to Prof. Yusuf Latif as a supervisor on this research, to Mr. Anggoro Putro as a supervisor on this research, and to my friends in the RQ-3 cost accuracy research.
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