CHALLENGES OF DESIGN-BUILD METHOD IMPLEMENTATION IN PUBLIC WORKS PROJECT DELIVERY

Abstract

Infrastructure, including public works, plays a very important role in supporting a nation’s effort for a better condition of life through economic growth and, in this regard, the Indonesian government is striving to accelerate the execution of a vast number of construction projects. A total budget of around USD 420 billion is made available to realize the program. Meanwhile, public works project delivery in Indonesia still have problems hampering the achievement of its ultimate objective, i.e. producing high quality facilities on time and without cost overruns. A breakthrough in project delivery is needed to ameliorate the condition. This paper describes Indonesia’s struggle to shift from a traditional Design-Bid-Build to a Design-Build delivery system for big public works construction projects. The research consists of a desk study of related existing literature and planning as well as evaluation documents to identify and analyze the challenges and strategic issues of this undertaking to create better value for money. A critical review of a recently issued Indonesian public works’ ministerial regulation on design-build project delivery system is also carried out. Finally, the paper offers important suggestions for a thrust forward to improve the quality of Indonesia’s public works’ construction project delivery and construction industry as a whole in supporting infrastructure development.