Risk Analysis of Coal Hauling Road Upgrade Project at PT. Borneo Indobara to Support Sustainable Development

Abstract

This study aims to analyze the risks during the construction implementation phase and to propose mitigation strategies. This study was framed by case study design with the project for improving the coal haul road of PT. Borneo Indobara as the chosen case. This project still adheres to support sustainable development concept where the new design can minimize dust pollution and air pollution. Data were collected through interviews, brainstorming, similar previous studies, and questionnaires. All risk variables in the questionnaire were tested for validity and reliability, and then descriptive analysis was carried out. The Godfrey method analysis matrix was used to determine the dominant risks. Identification of valid risk variables found as many as 41 risks divided into 9 sources. Based on the analysis results, 14 dominant risks regarding the impact of time delays and 8 dominant risks regarding the impact of cost losses were found. Based on the results of the study 8 risk mitigation strategies are recommended: 1) Implementation of Management of change; 2) Determination of the implementation method that best suits the needs and conditions in the field; 3) Strengthened supply chain management; 4) Application of construction technology; 5) Strengthened maintenance management of materials and equipment; 6) Tightened supervision and monitoring of implementation activities; 7) Improved coordination between project owners and implementation contractors including stakeholders; 8) Strengthened human resources management and its implementation.