Development of a risk-based strategy implementation of a full pre-financed contractor scheme (CPF) in toll road projects to improve time performance

Abstract

AbstractSeveral reasons underlie the use of Contractor Full Pre-Financed (CPF), which provides a much higher return opportunity than a standard payment contract system or the Monthly Certificate (MC). The case study in this research is one of the toll road construction projects in Indonesia that uses the CPF scheme. This study uses qualitative risk analysis to determine the dominant risk, quantitative risk analysis using the PERT distribution method to measure the impact of adding days due to the dominant risk on the critical path and produce a strategy to reduce the added days value due to risks in toll road projects with the CPF scheme. Strategy development is carried out to reduce the value of inherent risk to become a residual risk. The potential value of additional project completion time due to dominant risk is 30.68%–38.33% of the initial duration of the project. Through the development of strategies for each critical path activity, the potential added value of project completion time due to dominant risk can be reduced to 11.45%–16.73% of the initial project duration.

Keywords

• Contractor Full Pre-Financed (CPF)
• toll road projects
• time performance
• qualitative risk analysis
• quantitative risk analysis
• PERT analysis