Investors' risks in toll road concession award are related mainly to land acquisition; toll tariff, and tender process. Although the first of two are dominant risks, this study is focused on the risks associated with tender process. The reserve price, as a comparator for investors, bids has been criticized by investors, as it does not include proper cost of risks. There is a need to develop a more equitable reserve price that considers the risks, both at the project and at the business/corporate level. These risks have been identified based on existing regulations, and rom the point of views of both parties, i.e., the investors and the government were identified through semi-structured interviews. The findings indicated that while investors understand the need to estimate the cost of risks, this cost is not fully included because it is not fairly considered the reserve price. There are twelve significant risks identified including: the risk associated with overloading (poorly imposing the limition of heavy vehicles) and the risk related to route/traffic management (lower traffic volume due to changing routes). In theory, these risks can be mitigated by strict regulation and enforcement. However, lack of policy coordination among different parties within the government have been problematic and aggravating risks to the investors.
In the last decades the Indonesian construction sector has experienced significant shift in both the size and complexity. The ever-growing size and complexity of construction and infrastructure works often required the employment of non-traditional construction methods and technology. Responding to such needs, however, there remain questions on whether the construction industry is able to respond to such challenges. This paper is to put forward the concept for assessing the technological capability of the Indonesian construction industry. Particularly, it aims to describe how the construction companies evolve in their technological management capability. The assessment will encompass three aspects: technological capacity, development of technology capability and acquisition and adoption of technology. A technology management assessment concept was proposed to determine key factors that influence the way construction companies select and utilize technology to enhancement their performance. Although they appear to agree on general path for technology capability development, large contractors seem to be more prepared in formulating the strategies for the utilization and development of technology in the company’s strategic plans than those of medium-sized contractors.
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