Optimizing Subcontractor Work through ISO 31000 Risk Assessment Method

Abstract

Every project has its own risks associated with it. The more complex the project, the higher risks embedded within the project. Whenever the risk is not identified and mitigated properly, it will disrupt the project implementation. The article takes case study of a state-owned energy company, XYZ, that build electricity transmission system around Indonesia area. The transmission project requires various expertise that involves using multiple contractors with their subcontractors. Using the chain of contractors/subcontractors is a common thing in transmission project, so the project owner should ensure all risks within the chain should be properly managed. The article proposes the use of ISO 31000 risk assessment method to identify and mitigate all possible risks that may disrupt the project. The use of ISO 31000 method enables to lower the risk of project achievements from 79.74% success rates to more than 90%. The outcome of the article is expected to be used as a reference for project owner of transmission projects in Indonesia to manage the risks associated with the use of chain contractors and subcontractors.