Analysis Of The Influence Of Low Bidding Factors On Quality And Cost Performance In Procurement Of Small Class Pier Projects In The Government Environment

Abstract

Since COVID 19 pandemic hit Indonesia, many small harbor contractors have been forced to provide low bid prices ( < 80% HPS) for harbor auctions sourced from APBN funds in 2019-2022. Even though the bid price given is low, many contractors are able to complete the work according to the quality and price required in the contract agreement. This research analyzes the factors that cause contractors who have successfully completed the work, dare to provide low bids in the auction process. From the data obtained an processed using SEM-PLS method, it is know that the company’s internal condition factors have the most significant influence with a path coefficient of 0.464. The biggest indicator of the company’s internal condition is the company’s need to achieve the minimum sales/ profit target in one year, with a path coefficient value of 0.866. Financial characteristic factors also have a significat influence with a path coefficient value of 0.223. Meanwhile the technical characteristics factors has an influence with a path coefficient value of 0.213.