THE APPLICATION OF ANALYTICAL HIERARCHY PROCESS (AHP) TO DETERMINE BEST PROJECT FOR CONSTRUCTION BUSINESS IN INDONESIA: A CASE STUDY OF CV. MAEZURRA INDOTAMA
The construction sector plays a vital role in Indonesia's economy, contributing significantly to the nation's GDP. However, inefficiencies in bureaucratic processes and payment delays remain significant challenges, particularly for small-scale construction firms like CV. Maezurra Indotama....
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/87346 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The construction sector plays a vital role in Indonesia's economy, contributing significantly to the nation's GDP. However, inefficiencies in bureaucratic processes and payment delays remain significant challenges, particularly for small-scale construction firms like CV. Maezurra Indotama. In order to choose the best project management system for the company and guarantee business continuity and longterm growth, this research attempts to pinpoint the essential factors for making decisions and rank the available options.
Using the Analytical Hierarchy Process (AHP), the research evaluated key decision criteria, including contract management, fund security, and schedule management. A structured hierarchy of criteria and sub-criteria was developed, and pairwise comparisons were conducted to prioritize them. Data collection involved in-depth interviews with company experts, ensuring a robust qualitative and quantitative foundation.
Findings revealed that the most critical factors for project success include a thorough pre-signing contract review (42.2%), ensuring the availability of client funds (47.0%), and guaranteeing clear payment schedules (29.1%). Among the evaluated projects, the Comprehensive Contract Review SOP emerged as the top choice (37%), aligning with the firm's strategic priorities.
To enhance project outcomes, recommendations include strengthening contract management through simplified and standardized documents, improving financial readiness by ensuring client fund availability and exploring alternative funding options, and optimizing project scheduling with realistic timelines and effective supervision. Implementing these strategies can mitigate risks, streamline operations, and support sustainable growth in the competitive construction industry
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