Delay model for Engineering Procurement Construction (EPC): a case of Liquefied Natural Gas (LNG) projects in Indonesia

Abstract

Development of Liquefied Natural Gas (LNG) projects in Indonesia mostly utilized Engineering Procurement Construction) EPC as type of contract. The contract is particularly applied in large-scale project such as LNG because it needed to be realized with comprehensively planning and to be on time, and on budget for the benefit for all stakeholders. In maximizing the utilization of the resources, LNG plant project depended on detailed work plans and tightly work schedule. This research aims at analyzing factors influencing causes of project delay in construction LNG projects. Data were collected using survey method by mean of distributing questionnaire to respondent that representing skilled staffs of the contractor LNG construction. Grouping variables were carried out using factors analysis, and the generated factors and delay of the projects then were analyzed their relationship using Structural Equation Modelling (SEM). Results of this study generated seven factors that influenced the delay of the EPC contract in LNG projects. The factors are: Human Resources; Management; Material; External; Plant Equipment; Method; Quality. From the result of SEM analysis it generated a model for analyzing the delay of the EPC for LNG projects in Indonesia.