Risk Analysis in The Implementation of Construction Projects Using Fault Tree Analysis and Risk Matrix

Abstract

Post-COVID-19 pandemic, the construction industry sector began to experience good recovery and growth due to government support and policies related to infrastructure programs and the existence of the National Capital City (IKN) development project. In line with the prospects and potential in the construction sector, PT XYZ began to develop a business line in the construction business in the last three years. However, the company's performance in this sector has not yet reached the target set by the company. Therefore, one way to evaluate and improve work processes and better work planning is to implement risk management. This study aims to analyze the risks in the implementation of construction projects at PT XYZ using the fault tree analysis method and risk matrix. The results of this study showed that failure or low achievement of business income (project progress) can be caused by several factors, namely Business & Financial, Technical & Operational, K3L & Social, then Legal. There are 36 risks with a classification of 7 intermediate events and 29 basic events. There are three risks in the high-exposure area, namely Limited working capital (BE15), Late/default (IE1), and Limited employer liquidity (BE1). For significant risks, the top 10 risks (basic events) and 3 risks (intermediate events) have a risk exposure value of 4.4 M, which can be reduced to 1.63 M if PT XYZ implements a mitigation plan for the top risks. In addition, PT XYZ must also strengthen and give more authority to the risk committee to weigh the feasibility and readiness of the project implementation to be worked on. The results of this study are expected to contribute to risk management at PT XYZ so that the Company gets the right strategies and policies to improve performance and success in achieving production targets in the construction sector.