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THE INFLUENCE OF RISK FACTORS ON PROJECT COST IN

THE SIGLI-BANDA ACEH TOLL ROAD PROJECT

Mariama Badjie

Universitas Syiah Kuala, Banda Aceh, Indonesia

mariamabadjie.mb@gmail.com

ABSTRACT

Effective management of risk is critical to the success of any construction project. The importance of
risk management has grown as projects have become more complex. This study examines the influence
of risk factors on project cost in the Sigli-Banda Aceh toll road project. It identifies 47 common risk
indicators and categorises them into six risk factors, emphasize the need for improved risk management
strategies in complex construction projects. The research question of this study is to know the influence
and relationship of risk factors on project cost in the Sigli-Banda Aceh toll road project. The purpose of
this study is to determine the risk factors that influence and relate to project cost in the Sigli-Banda Aceh
toll road project. The data was analysed with statistical tools to determine the rank of factors affecting
project costs. The research method used quantitative, using hard data on Likert scale, and qualitative,
using the opinions of the respondents, with primary sources and secondary data. This research involved
the project director, site supervisors, engineers, safety environment officer, and finance manager from
PT Hutama Karya. Data collection techniques include the distribution of questionnaires. The data
analysis technique uses correlation and multiple linear regression analysis methods with the help of SPSS
software. According to the result analysis, all the factors have a moderate relationship with the project
cost, and there are four factors that have a significant relationship with the project cost, namely material
risk, equipment risk, construction method risk, contractor managerial risk, and construction safety risk.

Keywords: Influence; Risk Factors; Project Cost

INTRODUCTION

Construction is a big industry in Indonesia, as it is in other nations, and it plays a vital role

in the expansion of socioeconomic development (Khan et al., 2014). The primary criterion for
project success is meeting the project's deadlines and budget while maintaining the required level
of quality (Serrador & Turner, 2015). Although there has been significant investment in the
construction sector in Indonesia, there are still several problems with the sector, including costs
that exceed budgets, delays in finishing projects on time, construction faults, and an overreliance
on foreign labour (Menolascina et al., 2008).

The construction sector is facing a significant cost-cutting challenge as a result of the

expanding demand for building of all kinds and the limited availability of funding (Sami Ur
Rehman et al., 2022). Corporations, institutions, and the government would be in a survival race
for the remainder of the twentieth century, according to Mendelson and Greenfield (1996). The
participant in these sectors (the customer, in particular) is prepared to take on the challenge of
assuring efficient use of their resources to achieve value for money in terms of performance due
to the accompanying diminishing economic fortune of nations' economies throughout the world
(Eshofonie, 2008).

Under typical conditions, it is anticipated that the following costs will add up to the overall

cost of construction: Materials, labour, site overheads, equipment/plant, head office expense, and
profit, however in many countries, particularly in Indonesia, there are other costs that need to be
taken into account (Eshofonie, 2008).

These costs clearly have a negative impact on both the industry as a whole and the major

stakeholders in particular. High cost means additional costs to the client beyond those previously
discussed at the outset, resulting in worse returns on investment. The additional expenses are
passed on to the consumer as higher rental or leasing fees or prices. The consultants interpret this
as a failure to provide value for the money spent, which could damage their reputation and cause
clients to lose faith in them. If the contractor is at fault, it means a loss of earnings due to penalties

The Influence of Risk Factors on Project Cost in The Sigli-Banda Aceh Toll Road Project

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for non-three-quarter completion and bad word of mouth that could jeopardise his or her prospects
of gaining more work (Eshofonie, 2008).

A project is a task carried out with constrained time and resources to accomplish preset

objectives (Sonelma & Sucita, 2022). A construction project, on the other hand, can be seen as a
collection of tasks with distinctive characteristics, constrained time, and resources, necessitating
management expertise to handle them (Simanjuntak & Simandjorang, 2019). This series of tasks
includes creating plans, creating designs, building things, and maintaining them (Dharmayanti &
Jaya, 2018)

A construction project is an activity that involves allocating certain resources in order to

achieve the intended work outcome, which is determined by the suitability of time, quality, and
cost (Mahapatni, 2019). a building is one of the works of construction that provides a space for
habitation as well as for religious, commercial, social, and cultural objectives as well as for certain
activities. Because every action requires facilities, a construction project is a construction service
that is full of various risks when it is being carried out (Rofiah et al., 2021). To plan or manage
ongoing projects, reduce risks, and achieve project goals, project management is required. Risk
management, which makes sure that project risks are minimised, is an essential part of project
management (Project Management Institute, 2017).

Infrastructure projects, including toll road projects, are inextricably related to risks. Risk is

a result of an uncertain situation, which is frequently impossible to foresee with accuracy.
Therefore, risk management is essential from the start of the construction project to minimise the
impact of potential risks (Cheng et al., 2016).

RESEARCH METHODS

The research methods and research strategy used to achieve the paper's objectives will be

covered in this chapter. In order to better understand how risk factors, affect project costs during
the construction implementation stage and how to manage them, this study employed quantitative
research methods. It focused specifically on the type of flexible pavement used in the Sigli-Banda
Aceh toll road project. Three systematic processes made up the quantitative approach: a
questionnaire survey, a risk analysis of the results of the questionnaire survey, and.
Research Object and Scope

The relationship between risk factors and project cost, as well as their influence, are the

focus of this study. This study's focus is on P.T Hutama Karya, a reputable contractor firm in
charge of the Sigli-Banda Aceh toll road project.
Data Types and Sources

Research data types that are related to data sources and the methods chosen to collect

research data. The two types of data sources used in this study are as follows:

1. Primary Data

The  primary  data  for  this  study  came  from  responses  to  questionnaires  filled  out  by
knowledgeable  individuals  within  the  construction  firm  PT  Hutama  Karya.  Through  a
questionnaire, this is done to obtain a risk assessment of the Sigli-Banda Aceh toll road
project (Hanifah, 2019).
The  primary  data  for  this  study  came  from  responses  to  questionnaires  filled  out  by
knowledgeable  individuals  within  the  construction  firm  PT  Hutama  Karya.  Through  a
questionnaire, this is done to obtain a risk assessment of the Sigli-Banda Aceh toll road
project (Hanifah, 2019).

2. Secondary Data

Secondary data are those that have already been statistically analysed or that have been
gathered, statistically processed, and then transferred to another party. Regardless of
whether it was made public or not, it refers to data that has previously been obtained and
used for another reason (Bagha et al., 2019).
In this study, secondary data were collected from articles and international journals reading
sources, as well as information on the evaluation of direct construction contract documents

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for construction services at PT Hutama Karya in the project of the Sigli-Banda Aceh Toll
Project. The secondary data were then processed and analysed (Hanifah, 2019).

Population and Sample

A population is a subject or an object that falls within a study topic and satisfies the

requirements for individuals to be part of the research unit or analytic unit being analysed
(individuals, groups, or organisations). To accurately reflect the population, the sample, which is
a small section of the population, is drawn using a particular procedure (Abdussamad & Sik, 2021).

1. Population

Project director, site office supervisors, engineers, Safety environment officer and

Finance Project manager from PT Hutama Karya made up the population in this study
because they are the principal decision-makers who are in charge of the initiatives and knows
about the risk in the project better, whether they are from private organisations or from
people, are included in this group (Altoryman, 2014).

Engineers, site office supervisors, project director, Safety environment officer and

Finance Project manager from PT Hutama Karya made up the population in this study.
Whether they work for private businesses or are individuals, these people are the ones who
make the important decisions that affect the initiatives (Altoryman, 2014).

The respondents were chosen by the most skilled and seasoned staff members. 30

samples from PT. Hutama Karya records were used to identify responders, including
engineers, site office managers, and project directors, under the assumption that the error
value was 10%.

2. Sample

The sample is part of the population that has certain characteristics or circumstances

that will be studied.

The goal of sampling is to provide a selection that is representative of the population

from which it was derived. A "representative" sample of the total population must be used
to generalise the research's conclusions (Altoryman, 2014).

Engineers, site office supervisors, project directors, safety environment officers, and

finance project managers from construction business PT Hutama Karya were among the
samples used in this study. A list of the building construction projects completed for the
Sigli-Banda Aceh toll road project is also provided (Ariska, 2022).

If the population is less than 100, the entire sample is taken, but if the population is

larger than 100, 10-15% or 20-25% of the entire population can be collected, according to
Arikunto (2013). The authors used 100% of the population at PT Hutama Karya, or 30
respondents, based on this research because the total population is not larger than 100
respondents.

Table 1 Sample Calculation Results

Population

Engineers

Site office supervisors

Project Director

Safety environment officer

Finance Project manager

Total

Sample

Engineers

Site office supervisors

The Influence of Risk Factors on Project Cost in The Sigli-Banda Aceh Toll Road Project

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Project Director

Safety environment officer

Finance Project manager

Total

RESULTS AND DISCUSSION

This chapter presents the results of data processing and analysis obtained from the

questionnaires that have been distributed according to Chapter III and is given a discussion
according to the theory from the literature in Chapter II

Results of Data Collection
1. General Description of the Research Object

The study's purpose was the road construction project that was carried out on the Sigli-

Banda Aceh toll route. Because each activity requires infrastructure, a construction project is a
construction service that is rife with dangers during the execution stage. Based on information
collected directly from PT Hutama Karya, it was determined that the contracting company
completed construction projects on the Sigli-Banda Aceh toll road.

2. Data of Respondents

The questionnaire was distributed for one month, in December 2023. Based on the projects

that  were  put  into  action  in  2022,  the  results  of  distributing  the  questionnaire  revealed  the
frequency and impact of hazards according to level. The data is then processed to provide answers
to  the  research's  objectives.  Using  information  from  PT  Hutama  Karya,  it  will  be  determined
which sample was only obtained during the construction of the Sigli-Banda Aceh toll road project.
Purposive  sampling  is  used  to  estimate  the  number  of  withdrawals  in  each  area.  Based  on
purposive sampling, PT Hutama Karya's sample distribution in each industry is as follows: 36
respondents from different PT Hutama Karya divisions responded.

Data processing is done to provide answers to the queries that are the research's goals. The

direct distribution of questionnaires to the contractor company took place. The decision-makers
and skilled construction service providers of PT Hutama Karya were the respondents in this study.
Questionnaire A broad description of the study object is provided in Part I in the form of
respondent characteristics and company data. Position, gender, age, most recent education, job
history, company information, qualifications, prior company experience, project kind, project
value, projected length, and actual duration were the characteristics of the respondents used in
this study. Following are some details on the characteristics of respondents and firm information
gleaned from the Part I questionnaire:

3. Characteristics of Respondents

Because of the respondents' responses to the questionnaire, the characteristics of the

respondents in this study are utilized to describe the respondents' identities. Recapitulation of
survey data from respondents Table 2 displays Part I.

Table 2 Respondent Characteristics

No Characteristics of Respondents

Frequency

Percentage

Position

Engineer

55.6%

Project Director

2.8%

Site Office Supervisor

27.8%

Safety Environment Officer

2.8%

Finance project Manager

5.5%

Technician

5.5%

Total

Frequency

100%

Gender

Man

77.8%

Woman

22.2%

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Total

Frequency

100%

Age

21-30 Years

72.2%

31-40 Years

25%

41-50 Year

2.8%

Total

Frequency

100%

Last Education

Senior High School

16.7%

Undergraduate (S1)

80.5%

Post Graduate (S2/S3)

2.8%

Total

Frequency

100%

Work Experience

<3 Years

47.2%

6-8 Years

33.3%

>8 Years

19.5%

Total

Frequency

100%

According to Table 2, most respondents with positions as engineers are male and between

the ages of 21 and 30. Their most recent degree was a bachelor's degree (S1), and they have a
minimum of less than three years of work experience. The respondents can be trusted sufficiently
to answer the study questionnaire considering the findings.

Results of Data Processing

1. Research Data Test Results

a. Validity Test Results

Validity test is a measure that shows the level of validity or legitimacy of an

instrument. A valid instrument has high validity and conversely, if the level of validity is low
then the instrument is less valid. In this study, researchers used 36 respondents, so it can be
seen that the size of the r table is 0.329 which is obtained from (df= n-2 = 36-2= 34) with an
error rate of 5%. The validity test results for each question item on each variable are as
follows:

Table 3

Results of Validity Test Risk Frequency

Variable

Question

Items

Rcount

Rtabel

Information

Material Risk (X1)

X1,1

0,685

0,329

Valid

X1,2

0,764

Valid

X1,3

0,727

Valid

X1,4

0,494

Valid

X1,5

0,610

Valid

X1,6

0,630

Valid

Equipment Risk (X2)

X2.1

0,592

Valid

X2.2

0,601

Valid

X2.3

0,520

Valid

X2.4

0,801

Valid

X2.5

0,659

Valid

X2.6

0,574

Valid

X2.7

0,448

Valid

X2.8

0,536

Valid

X2.9

0,737

Valid

Construction Method Risk (X3)

X3.1

0,565

Valid

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X3.2

0,711

Valid

X3.3

0,454

Valid

X3.4

0,747

Valid

X3.5

0,753

Valid

Constractor Managerial Risk (X4)

X4.1

0,641

Valid

X4.2

0,633

Valid

X4.3

0,721

Valid

X4.4

0,714

Valid

X4.5

0,720

Valid

X4.6

0,780

Valid

X4.7

0,681

Valid

X4.8

0,651

Valid

Operational Risk (X5)

X5.1

0,477

Valid

X5.2

0,684

Valid

X5.3

0,628

Valid

X5.4

0,647

Valid

X5.5

0,539

Valid

X5.6

0,683

Valid

X5.7

0,663

Valid

X5.8

0,762

Valid

X5.9

0,452

Valid

Construction Safety Risk (X6)

X6.1

0,490

Valid

X6.2

0,713

Valid

X6.3

0,655

Valid

X6.4

0,842

Valid

X6.5

0,793

Valid

X6.6

0,690

Valid

X6.7

0,741

Valid

Project Cost (Y)

Y.1

0,719

Valid

Y.2

0,834

Valid

Y.3

0,725

Valid

Source: primary data processed with spss 20.0, 2023

Based on table 3 above, it can be seen that all question items from the variable’s material

risk, equipment risk, construction method risk, constructor managerial risk, operational risk,
construction safety risk, and project cost are declared valid. This is evident from all question
items which have calculated r values in the Corrected Item-Total Correlation which are
greater than the r table.

2. Reliability Test Results

The reliability test is a measure of a respondent's stability and consistency in

answering matters relating to the respondent's constructs which are dimensions of a variable
and are arranged in a questionnaire form. An instrument is said to be reliable if the
Cronbach's Alpha value is above 0.6 then the instrument is said to be reliable. The reliability
measurement using Cronbach's Alpha method can be seen in the table below:

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Table 4

Results of Reliability Test Risk Frequency

Variable

Alpha Cronbach

N of Items

Information

Material Risk (X1)

0,726

Reliable

Equipment Risk (X2)

0,785

Reliable

Construction Method Risk (X3)

0,662

Reliable

Constractor Managerial Risk (X4)

0,844

Reliable

Operational Risk (X5)

0,799

Reliable

Construction Safety Risk (X6)

0,830

Reliable

Project Cost (Y)

0,618

Reliable

Source: primary data processed with SPSS 20.0, 2023

Based on the output of table 4 above, it can be seen that all material risk, equipment risk,

construction method risk, constructor managerial risk, operational risk, construction safety risk,
and project cost variables have Cronbach's Alpha values above 0.6. This means that each question
item on each variable, including material risk, equipment risk, construction method risk,
managerial constructor risk, operational risk, construction safety risk, and project cost, is reliable.

Table 5

Correlation Test Results

Variable

Relationships

Spearman coefficient

Form of Relationship

X1 - Y

0,505

moderate

X2 - Y

0,594

moderate

X3 - Y

0,596

moderate

X4 - Y

0,551

moderate

X5 - Y

0,442

moderate

X6 - Y

0,452

moderate

Source: primary data processed with spss 20.0, 2023
Based on the output of table 5 above, the following interpretation can be given:

a. The relationship between material risk factors and project costs

The material risk factor has a Spearman correlation coefficient of 0.505, with a
significance value of 0.002 <0.05. This means that the material risk factor has a moderate
relationship and there is a significant relationship with project costs.

b. The relationship between equipment risk factors and project costs

The equipment risk factor has a Spearman correlation coefficient of 0.594, with a
significance value of 0.000 <0.05. This means that the equipment risk factor has a
moderate relationship and there is a significant relationship with project costs.

c. The relationship between construction method risk factors and project costs

The construction method risk factor has a Spearman correlation coefficient of 0.596, with
a significance value of 0.000 <0.05. This means that the construction method risk factor
has a moderate relationship and there is a significant relationship to project cost.

d. The relationship between contractor managerial risk factors and project costs

The contractor managerial risk factors have a Spearman correlation coefficient of 0.551,
with a significance value of 0.001 <0.05. This means that the contractor managerial risk
factors have a moderate relationship and there is a significant relationship with project
costs.

e. The relationship between operational risk factors and project costs

The operational risk factor has a Spearman correlation coefficient of 0.442, with a
significance value of 0.007 <0.05. This means that operational risk factors have a
moderate relationship and there is a significant relationship with project costs.

f. The relationship between construction safety risk factors and project costs

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The construction safety risk factor has a Spearman correlation coefficient of 0.452, with a
significance value of 0.006 <0.05. This means that operational risk factors have a moderate
relationship and there is a significant relationship with project costs.

3. Multiple Linear Regression Analysis

a. Regression Model

The multiple linear regression equation is the results of the multiple linear regression test,

among others, can be seen in the table below:

Table 6 Multiple Linear Regression Test Results

Variable

Regression

Coefficients

t test

tvalue

Sig

Constant

0,067

-0,089

0,929

Faktor Material Risk (X1)

-0,009

-0,110

0,913

Faktor Equipment Risk (X2)

0,162

2,078

0,047

Faktor Construction Method Risk (X3)

0,232

2,249

0,032

Faktor Contractor Managerial Risk (X4)

0,142

3,339

0,002

Faktor Operational Risk (X5)

-0,210

-2,603

0,014

Faktor Construction Safety Risk (X6)

0,106

1,377

0,179

Source: primary data processed with SPSS 20.0, 2023

Model

Unstandardized

Coefficients

Standardized

Coefficients

Sig.

Std. Error

Beta

(Constant)

.067

.749

.089

.929

Material Risk

-.009

.082

-.021

-.110

.913

Equipment Risk

.162

.078

.534

2.078

.047

Construction Method Risk

.232

.103

.388

2.249

.032

Contractor Managerial Risk

.142

.043

.466

3.339

.002

Operational Risk

-.210

.081

-.764

-2.603

.014

Construction Safety Risk

.106

.077

.328

1.377

.179

Based on the output in table 4.6 above, the regression equation can be written as follows:
𝑌𝑖=𝛽0+𝛽1𝑋1+𝛽2𝑋2+.... +𝛽6𝑋6
Y = 0,067 – 0,009 X1 + 0,162 X2 + 0,232 X3 + 0,142 X4 - 0,210 X5 + 0,106 X6
Based on the equation above, the regression coefficient in the model can be interpreted as follows:

a. The influence of material risk factors on project costs

The material risk factor has a regression coefficient of -0.009. This means that the
material risk factor has a negative influence and if it is increased, the project cost will
decrease by 0.01%.

b. The influence of equipment risk factors on project costs

The equipment risk factor has a regression coefficient of 0.162. This means that the
equipment risk factor has a positive influence and if it is increased, project costs will
increase by 16.2%.

c. The influence of construction method risk factors on project costs

The construction method risk factor has a regression coefficient of 0.232. This means that
the construction method risk factor has a positive influence and if it is increased, the
project cost will increase by 23.2%.

d. The influence of contractor managerial risk factors on project costs

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The contractor managerial risk factors factor has a regression coefficient of 0.142. This
means that the contractor managerial risk factors have a positive influence and if it is
increased, project costs will increase by 14.2%.

e. The influence of operational risk factors on project costs

The operational risk factor has a regression coefficient of -0.210. This means that the
operational risk factor has a negative influence and if it is increased, project costs will
decrease by 21%.

f. The influence of construction safety risk factors on project costs

The construction safety risk factor has a regression coefficient of 0.106. This means that
the construction safety risk factor has a positive influence and if it is increased, project
costs will increase by 10.6%.

a. T Test

The following partial test results can be seen in the following table:

Table 7 Parameter Coefficient Partial Test Multiple Linear Regression Analysis

Intermediate

Influence

tcount

ttable

Sig.

Decree

Information

X1 - Y

-0,110

2,045

0,913

0,05

No significant effect

X2 - Y

2,078

0,047

Has a significant effect

X3 - Y

2,249

0,032

Has a significant effect

X4 - Y

3,339

0,002

Has a significant effect

X5 - Y

-2,603

0,014

Has a significant effect

X6 - Y

1,377

0,179

No significant effect

Source: SPSS 20 Test Results (processed data, 2023)
Based on the equation above 4.9, the t test results can be interpreted as follows:

a. The influence of material risk factors on project costs

The material risk factor obtained is a value of tcount < ttable, namely -0.110< 2.045 and
a significance value of 0.913 > 0.05, so H0 is accepted and H1 is rejected. This means
that the material risk factor has no effect and is not significant on project costs.

b. The influence of equipment risk factors on project costs

The equipment risk factor obtained a value of tcount > ttable, namely 2.078 > 2.045 and
a significance value of 0.047 < 0.05, so that H0 was rejected and H2 was accepted. This
means that the equipment risk factor has a significant effect on project costs.

c. The influence of construction method risk factors on project costs

The construction method risk factor obtained a value of tcount > ttable, namely 2.249 >
2.045 and a significance value of 0.032 < 0.05, so that H0 was rejected and H3 was
accepted. This means that the construction method risk factor has a significant effect on
project costs.

d. The influence of contractor managerial risk factors on project costs

The contractor managerial risk factor obtained a value of tcount > ttable, namely 3.339 >
2.045 and a significance value of 0.002 < 0.05, so that H0 was rejected and H4 was
accepted. This means that the contractor managerial risk factor has a significant effect on
project costs.

e. The influence of operational risk factors on project costs

For the operational risk factor, the value obtained is tcount > ttable, namely -2.063 >
2.045 and a significance value of 0.014 < 0.05, so H0 is rejected and H5 is accepted. This
means that operational risk factors have a significant effect on project costs.

f. The influence of construction safety risk factors on project costs

The construction safety risk factor obtained a value of tcount < ttable, namely 1.377 <
2.045 and a significance value of 0.179 > 0.05, so that H0 was accepted and H6 was
rejected. This means that the construction safety risk factor has no effect and is not
significant on project costs.

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Discussion

Based on the project manager's perception that data processing and data analysis have been

carried out, in this sub-chapter the researcher will provide several discussions. The discussion in
this research concerns the influence of risk factors on project cost in Sigli-Banda Aceh toll road
project, as well as the form of relationship and influence between the risk factors on the project
cost in Sigli-Banda Aceh toll road project.
The discussion can be described as follows. 4.6.1 the influence of risk factors on project
cost in Sigli-Banda Aceh toll road project

The relationship between material risk factors and project cost. The relationship between

material risk factors and project costs in Sigli-Banda Aceh toll road project has been analysed
through  spearman  correlation.  This  analysis  shows  that  material  risk  factor  has  a  moderate
relationship  and  there  is  a  significant  relationship  with  project  costs.,  therefor  there  is  a
relationship  enough  with  Spearman  coefficients  of  0.505,  with  a  significance  value  of  0.002
<0.05.
The relationship between equipment risk factors and project cost.

The relationship between equipment risk factors and project costs in Sigli-Banda Aceh toll

road project has been analysed through spearman correlation. This analysis shows that equipment
risk factors have a moderate relationship and there is a significant relationship with project costs.,
therefor there is a relationship enough with Spearman coefficients of 0.594, with a significance
value of 0.000 <0.05.
The relationship between construction method risk factors and project cost.

The relationship between construction method risk factors and project costs in Sigli-Banda

Aceh toll road project has been analysed through spearman correlation. This analysis shows that
construction method risk factors have a moderate relationship and there is a significant
relationship with project costs., therefor there is a relationship enough with Spearman coefficients
of 0.596, with a significance value of 0.000 <0.05.
The relationship between contractor managerial risk factors and project cost/

The relationship between contractor managerial risk factors and project costs in Sigli-

Banda Aceh toll road project has been analysed through spearman correlation. This analysis
shows that contractor managerial risk factors have a moderate relationship and there is a
significant relationship with project costs., therefor there is a relationship enough with Spearman
coefficients of 0.551, with a significance value of 0.001 <0.05.
The relationship between operational risk factors and project cost.

The relationship between operational risk factors and project costs in Sigli-Banda Aceh toll

road project has been analysed through spearman correlation. This analysis shows that operational
risk factors have a moderate relationship and there is a significant relationship with project costs.,
therefor there is a relationship enough with Spearman coefficients of 0.442 with a significance
value of 0.007 <0.05.
The relationship between construction safety risk factors and project cost.

The relationship between construction safety risk factors and project costs in Sigli-Banda

Aceh toll road project has been analysed through spearman correlation. This analysis shows that
construction safety risk factors have a moderate relationship and there is a significant relationship
with project costs., therefor there is a relationship enough with Spearman coefficients of 0.452,
with a significance value of 0.006 <0.05.

There are 4 factors that have a significant relationship to the project costs in Sigli-Banda

Aceh toll road project and 2 factors that have no significant relationship to the project costs in
Sigli-Banda Aceh toll road project. Significant relationships are marked on factors that have a Sig
value <0.05 (5%).

The material risk factor obtained is a value of t count < t table, namely |0.010| < 2.045 and

a significance value of 0.913 > 0.05, so H0 is accepted and H1 is rejected. This means that the
material risk factor has no significant effect and is not significant on project costs. The material

The Influence of Risk Factors on Project Cost in The Sigli-Banda Aceh Toll Road Project

Return: Study of Management Economic and Business, Vol 3 (1), January 2024

risk factor has a regression coefficient of -0.009. This means that the material risk factor has a
negative influence and if it is increased, the project cost will decrease by 0.01%.

The equipment risk factor obtained a value of tcount > ttable, namely 2.078 > 2.045 and a

significance value of 0.047 < 0.05, so that H0 was rejected and H2 was accepted. This means that
the equipment risk factor has a significant effect on project costs. The equipment risk factor has
a  regression  coefficient  of  0.162.  This  means  that  the  equipment  risk  factor  has  a  positive
influence and if it is increased, project costs will increase by 16.2%. This risk often occurs during
the implementation of construction projects in  Sigli-Banda Aceh toll road project. (Equipment
risk)  this  risk  has  also  occurred  in  previous  studies,  which  can  be  seen  from  the  results  of
Chattapadhyay et al., (2021), Jaber (2019) and Moi and Purnawirati (2021).

The construction method risk factor obtained a value of tcount > ttable, namely 2.249 >

2.045 and a significance value of 0.032 < 0.05, so that H0 was rejected and H3 was accepted.
This means that the construction method risk factor has a significant effect on project costs. The
construction method risk factor has a regression coefficient of 0.232. This means that the
construction method risk factor has a positive influence and if it is increased, the project cost will
increase by 23.2%. This risk often occurs during the implementation of construction projects in
Sigli-Banda Aceh toll road project. (Construction method risk) this risk has also occurred in
previous studies, which can be seen from the results of Enderzon (2020 and Suherdi dkk (2020).

The contractor managerial risk factor obtained a value of tcount > ttable, namely 3.339 >

2.045 and a significance value of 0.002 < 0.05, so that H0 was rejected and H4 was accepted.
This means that the contractor managerial risk factor has a significant effect on project costs. The
contractor managerial risk factors factor has a regression coefficient of 0.142. This means that the
contractor managerial risk factors have a positive influence and if it is increased, project costs
will increase by 14.2%. This risk often occurs during the implementation of construction projects
in Sigli-Banda Aceh toll road project. (Contractor managerial risk) this risk has also occurred in
previous studies, which can be seen from the results of Jaber (2019) and Moi and Purnawirati
(2021).

For the operational risk factor, the value obtained is t count > t table, namely |2.063| > 2.045

and a significance value of 0.014 < 0.05, so H0 is rejected and H5 is accepted. This means that
operational risk factors have no significant effect on project costs. The operational risk factor has
a regression coefficient of -0.210. This means that the operational risk factor has a negative
influence and if it is increased, project costs will decrease by 21%.

The construction safety risk factor obtained a value of tcount < ttable, namely 1.377 < 2.045

and  a  significance  value  of  0.179  >  0.05,  so  that  H0  was  accepted  and  H6  was  rejected.  This
means that the construction safety risk factor has no effect and is not significant on project costs.
The  construction  safety  risk  factor  has  a  regression  coefficient  of  0.106.  This  means  that  the
construction  safety risk factor has a  positive influence  and if it  is  increased,  project costs  will
increase by 10.6%. This risk often occurs during the implementation of construction projects in
Sigli-Banda  Aceh  toll  road  project.  (Construction  safety  risk)  this  risk  has  also  occurred  in
previous studies, which can be seen from the results of Rustandi (2017) and Maulana and Santosa
(2020).

CONCLUSION

Based on the findings and discussions, it was found that the finding accepted the Influence

of risk factors is factor that affects their project cost significantly. The finding indicated that the
alternative hypothesis was accepted while the null hypothesis was rejected as the correlation
coefficient was .695, and the p-value was .000 which was less than .05 (.000 < .05). It can be
implied that there was a significant strong correlation between risk factors and project cost of the
Sigli- Banda Aceh toll road project.

The study reveals a moderate relationship between

material, equipment, construction method, contractor managerial, operational, and
construction safety risk factors and project cost, with a Spearman coefficient of 0.505,
0.594, 0.596, 0.551, 0.442, and 0.452 respectively.

The Influence of Risk Factors on Project Cost in The Sigli-Banda Aceh Toll Road Project

Return: Study of Management Economic and Business, Vol 3 (1), January 2024

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