Construction Services Research Articles

The Imposition of Financial Consequences Due to Force Majeure in Construction Service Agreements

Force majeure events are likely in Indonesian construction projects due to the country'ssusceptibility to natural disasters. Contractors are particularly vulnerable to defaults like completion delaysand financial losses due to damage. Legal protection through force majeure clauses is crucial. However,some Project Owners hesitate to define force majeure conditions due to a lack of understanding.Researchers aim to clarify force majeure concepts in agreements and construction contracts to ensure legalcertainty for all parties involved. This study employs a qualitative descriptive approach utilizing libraryresearch methods for data collection. Research findings indicate that construction service contract standardsin Indonesia, including those within the PUPR environment, the FIDIC Contract Form, and other projectcontracts, align with expert formulations and relevant regulations regarding the implementation of the ForceMajeure concept. Typically, the allocation of cost consequences resulting from a Force Majeure eventassigns responsibility to the Project Owner as the Creditor, rather than transferring it to the contractor.However, variations can occur based on the parties' agreement, which, if agreed upon, are legally bindingunder the Pacta Sunt Servanda principle, which facilitates the shifting of Force Majeure liability to thecontractor, prompting the contractor to consider it in their offer.

The effect of education expenditure on air pollution: Evidence from China

Education expenditure is essential in mitigating air pollution, but the relationship between education expenditure and air pollution lacks in-depth discussion. Utilizing data at the county level in China during 2007–2021, this study estimates the effect of education expenditure from local governments on air pollution. Our findings demonstrate that education expenditure significantly and negatively affects air pollution, which remains robust after addressing endogeneity. The mechanism analysis presents that education expenditure reduces air pollution through the composition, technique, and income effects. The heterogeneity analysis indicates that the impact of education expenditure exhibits marked regional heterogeneity. Specifically, the role of education expenditure is significant in strong regulation, key, eastern, and central regions. By considering interaction terms, we identify the moderating effects of human capital, economic development, infrastructure construction, and public service for education expenditure. The cost-benefit analysis emphasizes that education expenditure improves social welfare. Our findings can inspire local governments to place more emphasis on air quality and public education expenditure.

Settlement of Contract Business Activities Disputes through Arbitration : Evidence From Construction Service Company

Settlement of Contract Business Activities Disputes through Arbitration : Evidence From Construction Service Company

Identify the cause of claims on construction contracts in the West Papua Provincial Government Area

Along with the development of the construction service industry today, which is increasingly complex, construction service actors must carry out better project management so that the planned design can be realised properly. Before carrying out a construction project, the parties will agree on a legal basis in the form of a letter of agreement or a contract. In the execution of construction contracts, sometimes there are differences in interpretation and other things that can cause claims or claims. The formulation of the problem in this study is what are the potential risk factors of claims on construction contracts, what are the variables of potential claim risk on construction contracts, what are the variables of claims-forming models, what are the causes of risks in model-forming variables and what are the improvement recommendations produced in this study. The data collection method for this questionnaire was obtained by distributing the questionnaire three times. The results to be achieved in this study are to be able to determine the potential risks of what factors and variables can cause construction claims (first questionnaire), find out the variables of the claim-forming model (second questionnaire), and find out the causes of risk in the model-forming variables (third questionnaire). By knowing the level of influence of factors and variables, conclusions can be drawn about what needs to be anticipated in construction claims. Thus, appropriate recommendations are given to the West Papua Provincial Government to regulate the articles in the contract in more detail to minimise the potential for construction claims

Стратегические приоритеты развития локальных рынков строительной продукции Центрального Черноземья

Local markets boost domestic production, encourage regional businesses, improve the local economy, and structure the local economy. They are responsible for property relations, interregional economic links, and distribution of goods and services, which is especially relevant under the current foreign sanctions. This article describes a number of socio-economic indicators that affect local markets in general and construction products in particular. The study sample included local markets for construction products in Belgorod, Voronezh, Kursk, Lipetsk, and Tambov, i.e., the major cities in the Chernozem macroregion, also known as the Black Earth Region. Using the theory and methodology of strategizing, the authors analyzed data from the Federal State Statistics Service and revealed that construction work increased per capita in 2017–2021, which indicates a dynamic development of the local markets. The local markets in Belgorod, Voronezh, Lipetsk, and Kursk specialize in construction products and services. Their main strategic priorities include a prospective expansion of the range and quality of goods in order to meet the demand and satisfy the local communities and business. These local markets strive to overcome infrastructural constraints and increase the availability and quality of market infrastructure in different sectors. They level interregional differentiation, accelerate sustainable socio-economic development, and achieve local provision security. The research results contribute to urban and regional strategizing, as well as the construction industry.

Empirical validation of marginalisation thesis on the participation in the informal economy in Goa

This paper investigates the global increase in informal labor, focusing on two primary theoretical perspectives: the marginalization thesis and the reinforcement thesis. Previous empirical studies across various contexts have not definitively settled this debate. The current study, conducted in Goa, India, offers distinctive insights. Data from 200 informally employed individuals in both the formal and informal sectors was collected using snowball sampling. The findings of the binary logistic regression model reveal that the marginalisation thesis holds true, as individuals who are marginalised in terms of gender, age, education, and household employment in the informal sector are more likely to engage in informal employment. Conversely, the reinforcement thesis is supported when workplace characteristics such as flexible work timing and employment in construction services are considered. Therefore, the study concludes that a combination of marginalisation and reinforcement factors explains the reasons behind participation in the informal economy. Therefore, analysing labour market dynamics can offer valuable insights into informal employment.

Evaluation of Comparative Advantages of Trade in Service in Türkiye with RCA and TBI Indices

Technological developments in the last quarter century and the increase in the service sector in international trade enable schools to develop their foreign trade policies for service trade. To achieve a competitive advantage in this extended family service trade, it is necessary to determine the countries' comparative advantages. To choose the comparative advantage of Turkiye's service sector in this country between 2013-2021, the TBI index, which was used by RCA and supported the index results, was also included in the study. The data obtained from the survey show that Turkiye has a comparative advantage in maintenance and repair, transportation, travel, insurance and pension, and government goods and services in the relevant period. However, it is not generally observed during the elapsed time in government goods and services and insurance and pension services. On the other hand, while Turkiye has a net exporter position in manufacturing services on physical inputs owned by others, transportation, travel, and construction services, it is also a net exporter in insurance and pension, financial services, charges for the use of intellectual property, telecommunications, computer, and information processing and government goods and services during the relevant period—Importer position. However, some services remain net importers or exporters throughout the period. These results are more sensitive than macro and micro environmental conditions.
 Key Words: Trade in Services, Comparative Advanteges, RCA Index, TBI Index, Türkiye
 JEL Classification: F14

Mapping of Various Quality Management System Model to ISO 9001:2015

Measurement of Quality Management Systems (QMS) in construction projects is very important to assess the fulfillment of quality standards. A comprehensive and up-to-date standard setting is paramount. Much research has been done to develop a Quality Management System (QMS), but only focused on the quality management system in general by means of interviews and statistics. There are still only a few studies that focus on determining quality variables based on ISO 9001:2015, but they do not consider other Quality Management Systems (QMS) to obtain variables that are not in ISO 9001 2015. This research aimed to map out ISO 9001:2015 to find additional variables that are not present inside it. Six Sigma, Deming, Total Quality Management (TQM), Quality Management System (QMS), Baldrige Performance Excellence Framework, and LEAN Manufacturing are models for developing Quality Management Systems (QMS) that are widely applied in the construction industry today. This research produced eight additional variables as audit materials, which were expected to make ISO 9001:2015 better in its application and development in construction services. The eight variables were breaking down barriers between departments, eliminating pressure, eliminating arbitrary numerical targets, respecting people, contributing to society, reducing cycle time, increasing process transparency, and focusing on global process control. This research provides factors from a more varied and up-to-date quality management system that complements ISO 9001:2015
 Keywords: mapping, Measurement of Quality Management System (QMS)

Conceptual model for implementation of digital transformation and organizational structure in the construction sector

The construction sector has historically had lower productivity rates than other industries. This situation has led to the implementing new technologies and tools to increase the sector's added value. One of the significant trends has been digital transformation, adopting technological methodologies such as Building Information Modeling (BIM), Drones, Automation, Apps, the Internet of Things, and Big Data. Implementing these technologies has improved processes; however, this change process has been slow and gradual and has not generated radical transformations. One of the most significant problems is the resistance to change at the organizational level. Therefore, the primary goal of this research is to analyze the interaction between organizational structure and digital transformation; this relationship could substantially improve construction services and products. A survey was designed and distributed to companies in the Colombian construction sector, using 13 variables that impact digital transformation and organizational structures. Three hundred thirty-two valid responses were collected; they were analyzed using descriptive statistics, factorial analysis, and logistic regressions. The results show that the main aspects impacting the digital transformation processes are Employee Training and Development, Promotion Opportunities, Business Strategy, Leadership Styles, Cloud Services, and Integrated Organizational Innovation. Companies should understand the advantages of digital transformation and the necessary changes to reach an optimal organizational structure; these improvements will directly relate to improving construction services and products.

Recommendation of Prospective Construction Service Providers in Government Procurement Using Decision Tree

The determination of prospective construction service providers using the direct procurement method is the authority of the Goods/ Services Procurement Officer. Administrative requirements are an important factor in selecting prospective construction service providers. The use of the decision tree method in this study is to find out, determine, and analyse the variables that influence the assessment of the feasibility of prospective construction service providers, and get an accuracy value in providing an assessment of the feasibility of prospective construction service providers. The data used in this study are 153 datasets consisting of 13 variables. The existing variables are divided into basic variables and additional variables. The basic variables consist of 5 variables, namely experts, work experience, quality of work, winning tenders and contract value. While the additional variables consist of 8 variables namely business entity status, business entity form, business entity NPWP, business entity domicile, business entity qualification, type of business licence, percentage of work and construction services business licence. By using the decision tree method, the accuracy on the basic variable is 84.84%. The addition of additional variables to the basic variables resulted in an accuracy of 90.91%. This shows that by adding additional variables the accuracy results are higher than using only the basic variables.

Steel Production Process in CV. Tiga Putra Jaya Sejahtra

The construction services business is an activity in the economic, social and cultural fields which has an important role in achieving various targets to support the realization of national development goals. CV. Tiga Putra Jaya Sejahtra is a company engaged in the steel construction industry which provides the manufacture of fences, trellises, balconies, canopies, stair railings, rolling doors, children's toys, folding doors, light steel, galvalume, water towers, iron roofs. The purpose of this The implementation of this activity is to observe the production process of making hollow fences and the result of this activity is to find out how long it takes to make hollow fences, the costs that will be needed and the preparation of the BOM for hollow fences.

The Influence of Revenue, Operational Expenses, and Tax Expenses on Financial Performance in Construction Services Companies Listed on The Indonesian Stock Exchange

This study aims to determine the influence of revenue, operating, and tax expenses on financial performance in construction service companies listed on the Indonesia Stock Exchange in 2017-2020. The variables tested in this study consisted of the influence of income, operating expenses, and tax expenses as independent variables and proxied financial performance with operating profit margin as the dependent variable. The population in this study are construction service companies listed on the Indonesia Stock Exchange for the period 2017-2020. The sampling technique used in this study was purposive sampling, and a sample of 48 data from 12 construction service companies listed on the Indonesia Stock Exchange for the period 2017-2020 that met specific criteria was obtained. The data analysis technique used in this research is panel data regression analysis and classical assumption test. The results of this study indicate that income has a positive and significant effect on the company's financial performance, operating expenses have not a positive and not significant impact on the financial performance of the company, and tax expenses have not a positive and not significant effect financial performance and revenue, operating expenses and tax expense together do have a simultaneous and significant effect on the Company's Financial Performance.

The Effectiveness of the Procurement at the Construction Services Selection Implementation Center

The construction industry still faces various challenges in some developing countries, and one of the problems is the procurement of goods and services. The allocation of public procurement funds is significant to the national GDP. It is essential to conduct comprehensive research on government procurement in the construction industry in Indonesia due to the rapid growth of the construction industry in the last decade. This research focuses on the procurement of construction goods and services in the Ministry of Public Works and Housing by looking at the perception of the government as the project owner. This research aims to identify a model of critical success factors to improve public procurement performance in the construction industry from the government's perspective. The research method includes two stages, namely, the development of critical success, which consists of crucial factors and indicators that affect the performance of public procurement in the construction industry. It is a literature study of relevant previous research results from various countries that affect these critical success factors. Then, the second stage is a survey of experts' perceptions through questionnaires. The questionnaire data analysis used SEM-PLS software to quantify the relationship model of critical success factors to improve the performance of government procurement of goods and services in the construction industry. Data processing results include: business process factors affect 97.1%, regulatory factors affect 90.1%, information system factors affect 63.1%, human resource factors affect 56.1%, organizational factors affect 46.1%, and monitoring and evaluation factors affect 38%. Doi: 10.28991/CEJ-2024-010-03-013 Full Text: PDF

A koronavírus-válság strukturális és területi hatásai a magyarországi vállalati szektor sérülékenységére = The Structural and Territorial Impact of the Coronavirus Crisis on the Vulnerability of the Hungarian Corporate Sector

Corporate resilience is a frequently explored topic in the social science discourse on space. This study investigates the repercussions of the economic crisis induced by the coronavirus epidemic on the Hungarian corporate sector. It assesses corporate vulnerability through profitability and indebtedness dimensions, utilizing financial statements and credit data from 2019 and 2020. Initial scrutiny by sector and size reveals vulnerable company segments, followed by a territorial analysis to identify crisis-affected actors. Findings indicate that accommodation and food service, construction, administrative and support service activities, education, art, entertainment, and recreation economic branches, as well as smaller enterprises, were most impacted. Moreover, no distinct spatial pattern emerges; distribution is more influenced by sectoral and sizebased factors.

KUALITAS LABA PADA SEKTOR INFRASTRUKTUR KONTRUKSI BANGUNAN DAN JASA TELEKOMUNIKASI NIRKABEL DITINJAU DARI STRUKTUR MODAL DAN UKURAN PERUSAHAAN

Purpose: This study aims to determine the effect of Capital Structure and Company Size on Earnings Quality Design/methodology/approach: This research uses quantitative data, the sample in this research is infrastructure sector companies in the building construction and wireless telecommunications services sub-sectors listed on the Indonesia Stock Exchange in the 2018 – 2022 period, totaling 13 companies. The analysis technique used to test the hypothesis is multiple regression analysis using Eviews 9 software. Findings: The results of this study indicate that the Capital Structure variable has a positive and statistically insignificant effect on Earnings Quality, the Company Size variable has a positive and statistically insignificant effect on Earnings Quality. Originality/value: This research discusses Profit Quality and other factors such as Capital Structure and Company Size which focuses on infrastructure sector companies in the building construction and wireless telecommunications services sub-sectors.

Assessing user satisfaction in construction services: Analyzing contractor performance in central Kalimantan’s power projects

Background: User satisfaction is an essential indicator in assessing the quality of construction services. A deep understanding of the factors contributing to user satisfaction is crucial, especially in the context of electrical projects. Objective: This study aims to examine the satisfaction level of PT PLN (Persero) UIP West Kalimantan towards the performance of electrical project contractors and to develop strategies for improving contractor performance based on the findings. Methods: This research adopts an observational approach using Descriptive Analysis. A survey employing questionnaires was designed and distributed to employees of PT PLN (Persero) UIP West Kalimantan. Data analysis was conducted using the Customer Satisfaction Index (CSI) and Importance Performance Analysis (IPA) to identify key performance indicators. Results: The study indicates a high level of satisfaction from PT PLN (Persero) UIP West Kalimantan towards the contractor's performance, with a CSI value of 70% within a 95% confidence interval (66%-81%). The IPA analysis revealed 12 performance indicators within the 'concentrate here' quadrant, indicating priority areas for improvement. Conclusion: These findings affirm the effectiveness of the strategies and management implemented by contractors in achieving user satisfaction. This study provides valuable insights for other contractors in the construction sector to enhance service quality, especially through improvements in project managerial recruitment strategies, support for work equipment, and collaborative strategies with banking institutions for project financing.

Analisis Alokasi Tenaga Kerja Pada Proyek Pembangunan Gedung Sekolah Di Jalan Kecipir

The rapid development of construction projects and population growth in Indonesia creates a great need for facility development. A project is a method that combines a series of temporary activities with a starting and ending point. In construction service companies, a common problem that often occurs is human resource management. Human resource planning methods that are not optimal and their allocation is uneven can hamper project completion. This article aims to analyze the allocation of labor, especially in the school construction project on Jalan Kecipir. The research was carried out for 3 three months, from December 2023 – February 2024. The required data was collected by conducting literature studies and requesting data from related parties. The data analysis technique used is the Resource Leveling method using Microsoft Project Software. The results show that the allocation of labor in the school building construction project on Jalan Kecipir is uneven and experiencing overall allocation (excess allocation). There are several types of workers whose labor requirements exceed the limit of labor availability, including workers, foremen, bricklayers, head carpenters, carpenters and ironworkers. With the highest demand for each workforce, there are 54 workers, 12 foremen, 18 bricklayers, 6 head carpenters, 20 carpenters and 15 ironworkers

The influence of job characteristics and team work on employee performance with organizational culture as an intervening variable in the water resources department of Bina Marga and Bina Construction Deli Serdang District

The purpose of this research was to determine the influence of job characteristics and team work on employee performance with organizational culture as an intervening variable in the Water Resources, Highways and Construction Services Department of Deli Serdang Regency. The method used in this research is a quantitative descriptive method which is carried out through data collection using questionnaires and statistical testing data analysis. The population in this study was 151 employees, with sampling using the Slovin formula to obtain a sample of 110 employees. The data analysis used was path analysis using the SPSS Statistics version 18 application. The results of the study showed that job characteristics had an influence on organizational culture at the Department of Water Resources, Highways and Construction, Deli Serdang Regency. Team work influences organizational culture at the Deli Serdang Regency Water Resources and Construction Services Department. Job characteristics influence employee performance at the Department of Water Resources, Highways and Construction, Deli Serdang Regency. Team Work influences employee performance at the Department of Water Resources, Highways and Construction, Deli Serdang Regency. Organizational culture influences employee performance at the Department of Water Resources, Highways and Construction, Deli Serdang Regency. Organizational culture is able to mediate the influence of job characteristics on employee performance at the Water Resources Department of Highways and Construction of Deli Serdang Regency. Organizational culture is able to mediate the influence of team work on employee performance at the Water Resources Department of Highways and Construction of Deli Serdang Regency.

THE EFFECT OF PROJECT MANAGER COMPETENCE ON THE ACHIEVEMENT OF CONSTRUCTION PROJECT PERFORMANCE

The development of the construction services sector in Indonesia continues to experience rapid growth, encouraging construction industry players to have quality human resources. This research aims to identify project manager competency factors on construction projects in Banda Aceh City, analyse the relationship between these and project performance achievements, and evaluate their influence on construction project performance achievements in Banda Aceh City. The object of this research is the competency factors of project managers that influence construction project performance. This research was conducted at contractor companies domiciled in the Banda Aceh City area. The data sources used in this research are primary data and secondary data. The population of contractors at small, medium and large qualification levels is 71 contractors. The total sample was 42 contractors. The sampling technique used was purposive sampling. The variables used in this research include the independent variable (X) and the dependent variable (Y). The data analysis used in this research is descriptive, simple correlation analysis and multiple linear regression analysis. The research results show that knowledge, skills, and attitudes have a solid relationship. In contrast, management has a high relationship with project performance achievement. Overall, the project manager's competency factor significantly affects project performance, reaching 94.9%. Management is the most dominant competency factor influencing the achievement of project performance in Banda Aceh City. Thus, increasing the competence of project managers, especially in management, is expected to improve the quality of construction project implementation in the region.

Analysis of Calculation, Deposit and Reporting Value Added Tax and Income Tax in Construction Service Companies: Case study on CV. ABC Kendari

This study aims to determine and analyze the application of Calculation, Deposit and Reporting of Value Added Tax and Income Tax at Construction Services Company CV. ABC Kendari Period Year 2022. This research uses a qualitative descriptive method. Data collection techniques through interviews and literature studies regarding tax data and financial reports of CV. ABC Kendari during the 2022 period. The results of this study indicate that the application of the calculation, deposit and reporting of Value Added Tax and Final Income Tax Article 4 Paragraph (2) that has been carried out by CV. ABC Kendari as a company that has been confirmed as a Taxable Entrepreneur is in accordance with the General Provisions and Procedures for Taxation and the current Legislation and every work completed is made a Tax Invoice in accordance with the value stated in the Pay Order or Disbursement Order received from the Government Agency or Office Treasurer as a service user.