Identification of Dominant Risk Factors Causing Interior Project Delays Based on Contract Management Standard (CMS) (Case Study: PT. X)

Abstract

Retail interior projects are experiencing rapid development but are faced with chronic delays. A case study at PT. X shows that 40-50% of projects experience delays, which result in cost overruns and a decline in reputation. The root cause is identified as a weak contract management process. This study aims to identify the dominant risk factors causing delays in retail interior projects using the Contract Management Standard (CMS) framework as the activity basis. The research method uses a mixed-methods design involving three main stages: (1) Validation of 51 CMS activities from the literature by 5 experts, resulting in 47 activities relevant to interior projects; (2) Validation of risk factors from the literature by experts, resulting in 31 relevant delay risks; (3) A primary survey of 46 PT. X respondents to assess the probability and impact of the 31 risks, followed by a ranking analysis. The results of the study identified 19 dominant risk factors (high risk). The three highest-ranking risks are: (1) Risk of error in contract/work drawing interpretation, (2) Risk of error in monitoring or accepting contract performance, and (3) Risk of delay in approval of fit-out drawings by Building Management. These findings indicate that the majority of critical risks (9 out of 19) occur during the "Contract Execution" stage. This study provides a prioritized risk list that companies can use as a basis for developing effective mitigation strategies.