Determining Critical Factors Project Delay and Effecting Cost Overruns in Telecommunication Mobile Network Projects

Abstract

Telecommunication Industry has created numerous employment opportunities and playing a role model in economic growth of Indonesia. This industry is facing serious and critical problem of cost overruns in Telecommunication Mobile Network Projects, especially in implementation 4G-LTE Project in Jakarta, Depok, Bogor, Tangerang, Bekasi (Jadebotabek) area. The purpose of this research is to identify and classify critical factors project delay and expound the effect of that critical factors to cost overruns. A structured questionnaire based on 38 factors project delay related to cost overruns (Ullah et al., 2017) was developed and distributed to 100 respondents from 35 selected Contractor Company in Jadebotabek area. The collected data was statistically analyzed with Factor Analysis and Multiple Linear Regression that processed using SPSS. As a result, 4 new Critical Factor Project Delay effect to Cost Overruns in sequence are Lack of cost plan and monitoring, Equipment failure, Extension of time, and Inadequate project preparations were identified.