RISK ANALYSIS OF BUSINESS SUSTAINABILITY IN SMALL AND MEDIUM SCALE CONTRACTORS IN THE BANDUNG CITY

• Main Author: Vidya Tiffany, Saocy
• Format: Theses
• Language: Indonesia
• Subjects: Teknik (Rekayasa, enjinering dan kegiatan berkaitan)
• Online Access: https://digilib.itb.ac.id/gdl/view/81570
• Institution: Institut Teknologi Bandung

As the construction industry grows, the need for construction service providers will increase. However, there was a decrease in the number of small and medium contractors in Indonesia in 2019 and 2022. In addition, since 2020 the number of small and medium-sized contractors in Bandung City has decreased every year, this is not directly proportional to the increase in the number of projects in Bandung City. This indicates that small and medium contractors in Bandung City are unable to survive in managing their business. Risks or failures that occur to small and medium contractors in Bandung City can cause contractors to go out of business. This study aims to identify business sustainability risks faced by small and medium scale contractors in Bandung City, identify the most dominant business sustainability risks in small and medium scale contractors in Bandung City and actions that can be taken by small and medium scale contractors in Bandung City to minimize business sustainability risks. The object of this research is small and medium-sized qualification contractors in Bandung City who are asked to assess business continuity risks from various literatures using interviews and questionnaires. From the results of data analysis using the risk matrix table, 4 business continuity risks are obtained which are included at a high level, namely mistakes in formulating company strategies, construction market competition, late payments from the owner and cash flow is not smooth. Based on the FMEA method, the most dominant business continuity risk is late payment from the owner/client (X17) and the strategy that can be used by small and medium contractors in Bandung City is to choose the right payment method when making an agreement on the contract, and implement internal control and external control during the billing and payment process.