Analysis of Project Cost Management Indicators at Residential Buildings (Case Study: Building Construction Project in Rusun Penggilingan Jakarta)

Abstract

Indonesia’s economic growth is growing along with the growth of the construction industry against increasing construction projects. The performance of a construction project requires serious management to achieve maximum results. Delays occur, quality is not in accordance with contract specifications, and costs that sometimes occur overbudget. Some studies show that the dominant factors causing overbudget in construction projects consist of: cost estimation factors, performance management factors, resource mobilization factors, control factors of timing performance, incomplete project information data, increasing material prices, and financial policies from government. In overcoming these dominant factors, project cost management is needed. Construction projects can be managed with project cost management. Project cost management includes the stages of planning, scheduling and controlling which are important steps to be taken to achieve the objective of project performance. Project cost management involves cost budgeting and cost control. Cost budgeting aims to generate a cost baseline to ensure project performance and project needs. A cost baseline is a time step from the budget used by the project manager to ensure and monitor costs. Cost control is used to monitor costs based on the cost baseline.Project control systems can be seen through project performance. Project performance can be done by comparing cost performance over time. Costs from the time period can be analyzed by variance analysis. Variance analysis involves actual project performance with planned performance. Value technique is used to analyze trend whether a performance is improving or deteriorating by comparing planned performance with actual performance. EVA (earned value analysis) is one of method using for project control. EVA method can be used to measure project performance which applied as a tool to integrate between cost and time aspect.