Analysis of The Effect of Fabrication and Installation Work on Cost Overruns in Steam Turbine Generator Projects and Coal Boilers in Palembang
DOI:
https://doi.org/10.35870/ijmsit.v2i2.629Abstract
Delays (time overruns, SPI < 1) and exceeding budget costs (cost overruns, CPI < 1) on EPC (Engineering, Procurement, Construction) Projects are a global phenomenon due to the very diverse and unique nature of construction projects so that many companies experience losses during construction execution work activities. A very critical job in the execution of EPC projects is fabrication and installation activities which are part of construction activities because there are very many variables that have an impact on cost overruns if the fabrication and installation work is not monitored and controlled properly. In this study, an analysis of the effect of fabrication and installation work on cost overruns was carried out on the Steam Turbine Generator and Coal Boiler Project in Palembang. The analysis was performed using SPSS Ver software. 25 by processing questionnaire data from the answers of 42 respondents. With good control and early anticipation of construction activities so that it can help project managers in managing projects more effectively and efficiently so that the SPI (Schedule Performance Index) and CPI (Cost Performance Index) are more than one and the achievement of other requirements in accordance with project specifications and contracts.
Downloads
References
Alaa Khalfan, Alaa Khalfan Al Ghaithi, Rafeeq Ameen Kattiparuthi, 2017, Alaa Moosa Koya Diterbitkan Juli 2017, Delay Analysis in EPC Projects using Ishikawa Diagram International Journal of Advanced Engineering, Management and Science (IJAEMS), [Vol-3, Issue-7, July-2017]https://dx.doi.org/10.24001/ijaems.3.7.7ISSN: 2454-1311
I G.N. Oka Suputra, 2019, Univ.Udayana Research Report, Analysis of causes of changes in implementation costs Construction Projects, Bali.
Memon et al., 2018, Person-organisation Fit and Turnover Intention: The Mediating Role of Work Engagement. Journal of Management Development, 37 (3), 285-298. doi:10.1108/jmd-07-2017-0232.
Suharto, Iman, 1997, Project Management from Conceptual to Operational, Erlangga, page Jakarta.
Camuto Marking Rich, 2003, EPC-Lower Risk. Shorten Construction Cycle and Reduce Costs, Bulletin Number 03031, Cooper Industries Inc, 2003, Diakses 1 Agustus 2008
AECOM (Albert Einstein College of Medicine (Einstein) of Yeshiva University), 2014. USA
Corporate Policy Construction (2019), PT Rekayasa Industri (REKIND)
Ahmed Senouci, Alaa Ismail and Neil Eldin, 2016, ”Time Delay and Cost Overrun in Qatari Public Construction Projects”. Creative Construction Conference 2016, CCC 2016,
Sugiyono, 2018, Understanding Quantitative Research, Alfabeta, Bandung.
Suharto, Iman, 1997, Project Management, From Conceptual to Operationa, Erlangga, Jakarta.
PP Nomor 22 Tahun 2020, Implementing Regulation of Law Number 2 of 2017 concerning Services Construction.
Montri, S Kwanchai Raochanakanan, 2005, A Case Study of Cost Overruns in A Tahi Condominium, .A Dissertation, The Texas A&M University
Corporate Policy Construction (2019), PT Rekayasa Industri
Fristi Ingkiriwang (2012), Effect of Design Performance of Detailed Engineering Work Subcontractors Against Cost Overrun in EPC Projects (Case Study of PT XYZ). Master of Thesis, University of Indonesia, Depok, Indonesia.
Irika Widiasanti, M.T dan Lenggogeni, M.T., 2013, Construction Management, .PT. Adolescent Rosdakarya, Bandung
Ron Wakefield, Nick Blismas (2009), Drivers, Constraints and the Future of Offsite Manufacature in Australia. Construction & Project Management, RMIT University, Melbourne, Australia
Nida Azhar, Rizwan U. Farooqui and Syed M. Ahmed , 2008, Cost Overrun Factors In Construction Industry of Pakistan, First International Conference on Construction in Developing Countries (ICCIDC-I), Advancing and Integrating Construction Education, Research & Practice, August 4-5, 2008, Karachi, Pakistan, 499-508.
Dani Prabowo (2018), https://properti.kompas.com/read/2018/09/13/091659821/ indonesia- kuasai-60-persen-pasar-konstruksi-asean
Etikaf Hussain, Muhammad Umer, Rizwan U. Farooqui and Sorosh Lodi 2012, “Factors Affecting Construction Cost in the Pakistani Construction Industry, Third International Conference on Construction in Developing Countries (ICCIDC-III), Advancing Civil, Architectural and Construction Engineering & Management, July 4 -6,2012, Bangkok, Thailand.
Downloads
Published
Issue
Section
License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Copyright Retention and Open Access License
Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
2. Rights Granted Under CC BY 4.0
Under this license, readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, including commercial use
- No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed
3. Attribution Requirements
All uses must include:
- Proper citation of the original work
- Link to the Creative Commons license
- Indication if changes were made to the original work
- No suggestion that the licensor endorses the user or their use
4. Additional Distribution Rights
Authors may:
- Deposit the published version in institutional repositories
- Share through academic social networks
- Include in books, monographs, or other publications
- Post on personal or institutional websites
Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.
5. Self-Archiving and Pre-Print Sharing
Authors are encouraged to:
- Share pre-prints and post-prints online
- Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
- Engage in scholarly communication throughout the publication process
6. Open Access Commitment
This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.
