STRATEGY FOR CONSTRUCTION DIVISION III PROJECTS DURING COVID-19 OUTBREAK: A CASE STUDY IN PT WKG

• Main Author: Leo Rando, Erik
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57347
• Institution: Institut Teknologi Bandung

WKG is one of the seven subsidiaries of a state-owned construction company which has grown and developed consistently serving the government, other state-owned or country-owned corporations, loan and private markets in Indonesia. The spread of the coronavirus (COVID-19) has an impact on the construction industry sector. The emergency conditions caused by COVID-19 have implications for the impossibility of the construction work being able to run normally, effectively, with quality and on time. Based on the 2020 KPI result of Construction Division III at PT WKG, there were all decreases in all performance factors of Construction Division III. In 2020, Construction Division III handled a total of 13 projects. The objectives of this research were to identify internal and external factors affecting the building construction projects at Construction Division III PT WKG during COVID-19 pandemic in year 2020. PT WKG as a state-owned corporation should align with government plan’s building construction projects and 2021 published KPI that despite the pandemic must go on running. Unstandardized work definition among regions, legal aspect knowledge, needed training and development to improve employees’ hard and soft skills, the placement of fit personnel, firmness to owner, claim management, material supply chain for big scale project; personnel cost overrun, increased overhead expenses led to time consumption, overall cost overruns, limitation of big social movement were parts of the root causes of decreasing project performance during COVID-19 pandemic. Data were collected by distributing questionnaires and conducted interviews to all 8 Project Managers of Construction Division III and also to the Operational Manager, Planning Manager and Finance Manager of the Construction Division III. The analysis method used Porter’s Five Forces Analysis, Root Cause – Fishbone Analysis, VRIO Analysis, SWOT Analysis and Project Performance Factors Analysis. Major result in the internal factors that impacted the Company were the non-material resources become the main power or core competencies which are integrate all company assets such as patents, brands and intellectual property. Financial resources such as: PT WKG cash flow, shares and other financial factors; also PT WKG material resources such as raw materials, facilities, machines and equipment became temporary competitive advantage because those resources are considered valuable and organized. The technology owned by WKG is mainly the modular technology. While for the external factors were the results of the identification of macro external factors using PESTEL analysis shows technological, environmental, and social are important factors as well as economic factor which is the most important factor that need attention. Results of identification of micro external factors using Porter's Five Force show the factor of competition between companies becomes opportunities for PT WKG as one of the leading state-owned public construction company in Indonesia. Company needs to have alternative design optimization; use local competitive materials; reduce overtime work for the project personnel; have standardized procedures in every project site, green building requirements and strict health protocols in every project site; implement Building Information Modelling (BIM) software; and to have precast and modular usage to manage high customer satisfaction.