IDENTIFICATION OF THE IMPLEMENTATION OF INCENTIVES TO REDUCE MATERIAL WASTE IN CONSTRUCTION PROJECTS ACCORDING TO THE PERCEPTIONS OF CONTRACTORS AND EMPLOYERS IN INDONESIA

• Main Author: ANNISA AULIA, NOVINDA
• Format: Dissertations
• Language: Indonesia
• Subjects: Teknik sipil
• Online Access: https://digilib.itb.ac.id/gdl/view/53152
• Institution: Institut Teknologi Bandung

A construction project is a process of converting a resource into a more valuable product, namely in the form of a building. However, it cannot be denied that in a construction process it will definitely produce residues or commonly known as waste. Waste in question is physical waste in the form of excess material or damaged products that can no longer be used due to various things that occur in the process. The existence of waste can have an effect on reducing project efficiency and have a negative impact on important aspects such as the environment, so that efforts to reduce waste are deemed necessary. One of the efforts which is considered effective in reducing waste is by providing incentives. The presence of incentives as an intervention mechanism in a construction process is believed to be able to encourage process improvement, because incentives can motivate labors of the process to improve their work performance, so that it is expected that waste can be reduced. However, such potential incentives are not supported by clear regulations and construction work contracts. It is necessary to identify the application of appropriate incentives for the purpose of reducing waste in construction projects in Indonesia. This study seeks to determine the perceptions of the Contractor and Employer as the two main parties involved in a construction project related to the implementation of incentives, which include four main categories, they are: the need for incentives, implementation of incentive forms and mechanisms, efforts made by contractors to get incentives, and impacts of the incentive’s application. Furthermore, from the responses that have been given by the two groups, the results are compared to find out whether there are significant differences related to the perceptions held by each party. The results show that based on the descriptive analysis method, it is known that the Contractor and the Employer agree that the application of incentives to reduce waste material in construction projects is necessary. The implementation of a form of financial incentive that was deemed appropriate for both parties was in the form of bonus money. As for non-financial incentives, Contractors tend to agree if it is in the form of an award certificate, while Employers prefer to think that acknowledgment is more appropriate. Regarding the incentive mechanism, it needs to be regulated and clearly written in the contract. In this study, an illustrative diagram shows how the ideal incentive mechanism is applied in a construction process. Furthermore, regarding the contractor's efforts to get incentives, the important thing that needs to be done according to both parties is the provision of a safe material warehouse and waste design planning from the start of construction and the need to employ trained and certified workers. Finally, it is believed that the implementation of incentives will have a major impact on the time and managerial aspects of the project. From the Mann Whitney comparative test which has been carried out with 5% accuracy, it can be concluded that in general there is no significant difference between the Contractor and Employer's perceptions regarding the implementation of appropriate incentives for the purpose of reducing waste material in construction projects in Indonesia.