Evaluating Indonesian Large Contractors’ Performance: a Client Satisfaction Perspective

The fierce competition in the construction industry forces contractors to keep increasing their performance to survive in the market. One of the performance measurements which can be used is client satisfaction, which looks at contractors‟ performance both during the process of construction and the end product. This research aims to evaluate large contractor performance in Indonesia using 27 criteria adopted from the application of 8 areas of PMBOK (Project Management Body of Knowledge) in a construction project. Data was collected through interviews and questionnaire surveys. Respondents were clients, construction management or supervision consultants as the representation of clients. This research found that in general the large contractors‟ performance of project management is satisfying. This is indicated by client satisfaction index(CSI) which equals to 71.49%. A two-dimensional grid of the Importance Performance Analysis (IPA) classified the contractors‟ performance variables into 4 categories, i.e.: (A) Concentrate Here; (B) Keep Up the Good Work; (C) Low Priority; and (D) Possible Overkill, with the mean values of importance and performance are 4.44 and 3.57 respectively. Identification and mapping of these variables is very important for contractors to improve their project management performance towards client satisfaction. These results may represent current picture of Indonesian large contractor performance on factors that are doing well and those that need improvement

Analysis of Subcontracting in the Construction Industry in Indonesia

This paper presents an empirical analysis and justification on collaboration between small and large enterprises through strengthening partnership (subcontracting) in order to strengthen the contribution of the construction sector in the national economy. Some conclusions that can be taken that: (i) the construction of market share inequality can be balanced with application the partnership (subcontracting); (ii) Siding with non-small enterprises/large (mostly foreign entities) will push the capital outflows and reduce the competitiveness of the nation; (iii) Strengthening the supply chain through partnership scenario (subcontracting) on the entire flow of the chain will support the role of small business concerns in seizing the national construction market; (iv) weakness of collaboration patterns can be reduced by setting policies that favor (affirmative) the existence of a small body as part of the construction industry; (v) The construction market continues to increase is not offset by an increase in the construction market of small business entities resulting gap portion of the acquisition capitalization construction. (vi) Policy subcontracting by small business entities will potentially increase the absorption of the construction workforce (value added) and construction GDP in national GDP and consequently increase economic growth as an indicator of the competitiveness of nations