The list order of construction risk contract for small-scale construction service in surabaya, indonesia using analytical hierarchy process (ahp)

Abstract

Small-scale construction service providers dominate the construction industry in Indonesia. However, along with Indonesia’s economic growth, small-scale construction service providers owner has a chance to expanse their business. Based on their experience, small-scale construction service providers have limitations. They cannot take a priority, whereas the risky of the contract construction. This study aims to make a list order of the construction risk based on medium-scale construction service providers. With this study, we want to help share the medium-scale experience to small-scale construction service providers in terms of risk contracts in Indonesia to learn and anticipate it. We conduct risk identification by literature and make list order analyzing using Analytical Hierarchy Process (AHP). AHP method can provide a single and easy-to-understand of unstructured problems. This research indicates that mismatch between the volume of work in the Bill of Quantity and field conditions is the most risk in terms of contract construction. However, the lump sum contract also identified the risky contract based on medium-scale construction service providers.