INCENTIVE IN CONSTRUCTION’S CONTRACT: LITERATURE REVIEW DAN RECOMMENDATION FOR THE APPLICATION IN INDONESIA

• Main Author: Aulia Mutianisa, Mifna
• Format: Theses
• Language: Indonesia
• Subjects: Teknik sipil
• Online Access: https://digilib.itb.ac.id/gdl/view/36648
• Institution: Institut Teknologi Bandung

So far, many contractors and consultants have suffered a lot of losses, including late payments and imposing penalties even though the mistakes that occurred were not entirely caused by contractors / consultants, so the money earned must be deducted. If the contractor / consultant does something that can help the project to be faster, more efficient, and more productive, so far there has been no particular award given by the client so that the contractor is not too interested in improving quality / performance and competitiveness. In order to achieve justice, the government provides an opportunity to implement contracts with incentives. Even so, these incentives have not been implemented. So this study emerged to examine the potential application of incentives in the construction sector in Indonesia and analyze the scheme of the implementation of incentives that have the potential to be applied. This study is expected to provide an overview of the potential application of incentives in Indonesia, which inhibits and supports incentives and solutions technical implementation of incentives in Indonesia. In addition, this research can also be used as a reference for the study of the issue of the application of incentives in the construction sector, especially in Indonesia. Data collection was conducted by questionnaire. The method used is an analysis of a combination of quantitative and qualitative. Quantitative analysis is used for Likert questionnaire data while qualitative is used for open questionnaire data and literature review. Analysis of results using grounded theory is used to explain general phenomena, processes or theories about incentives based on conceptual ideas. From the research it was found that there were still obstacles in implementing incentives in Indonesia, including obligations not fulfilled, no competition, lack of skilled labor, lack of capability, no agency, no standards, risk uncertainty, contracts containing only designs and timelines, and contracts not fair. Settlement of these problems can be done by increasing stakeholder awareness to implement incentives to develop electoral methods that support incentives, improve construction contracts in Indonesia, discuss incentives when drafting contracts, fulfill fair conditions on contracts, attention to the relationship of risk contracts well, the application of partnering contracts, flexible construction contracts and the establishment of agencies / agencies that manage the implementation of incentives. Even so, there are several factors that support the implementation of incentives in Indonesia, namely the Law has supported the implementation of incentives, once implemented incentives, the existence of support for labor assistance and incentives is a necessity. The potential of contractors and consultants in Indonesia to implement incentives is of medium value (45% and 33%), which means that with the current condition of Indonesia, changes from the system, regulations, or ways of thinking in construction activities are needed to implement incentives. Based on the figures above, it can be seen that contractors have more potential to apply incentives than consultants because the incentives for consultants are still rarely applied. Hard work and changes to the consultant system are needed to have the same potential as the contractor. Initiation and preliminary design in which there is identification of project goals and needs, initial evaluation of the application of incentives (with discussion of determining project criteria, determining stakeholder criteria, and determining incentive objects), and determining contracts. After this stage, then enter the project design by developing project parameters and specs, project design, and ascertain whether the incentives will be used or not. Then enter the design agreement which consists of analyzing the parameters of incentives and finalization as well as merging specifications later stages of construction which also discusses the procurement and administration of contracts, then closes with evaluation activities. The difference in the application of incentives to public projects with road projects from the results of the analysis is the initial evaluation of the implementation of incentives with the "Incentive Project Suitability Checklist" as well as the parameters used in analyzing incentives.