In the bustling world of construction management, particularly in developing countries like Indonesia, financial critical success factors (CSFs) often take a backseat to technical considerations. However, a recent study published in ‘Jurnal Pensil’ (translated as ‘Pencil Journal’) is challenging this norm, shedding light on the financial aspects that can make or break a project. The research, led by Andre Tampubolon from the Master of Civil Engineering Study Program at Universitas Trisakti, focuses on the Jatiluhur Regional SPAM PSN Project Management Phase 1, offering valuable insights for the energy sector and beyond.
Tampubolon’s study employs the Analytic Hierarchy Process (AHP), a powerful decision-making tool, to weigh the importance of various financial CSFs. The results are eye-opening. “Project-related factors emerged as the most critical, with a significant weight of 0.588,” Tampubolon explains. This category includes sub-factors like project capital composition, which ranked highest overall with a weighting of 0.270. “This indicates that the way we structure and allocate project funds can have a profound impact on success,” Tampubolon adds.
The findings also highlight the importance of client-related factors (0.175) and project management factors (0.133), while land transfer pricing (0.070) and business and work environment-related factors (0.070) were found to be less critical. These insights could significantly influence how projects are planned and managed in the future, particularly in the energy sector where large-scale infrastructure projects are common.
The commercial implications are substantial. By understanding and prioritizing these financial CSFs, project managers can mitigate risks, optimize resources, and ultimately enhance project outcomes. This could lead to more efficient and cost-effective energy infrastructure, benefiting both developers and end-users.
Moreover, Tampubolon’s research underscores the need for a more holistic approach to project management. “It’s not just about the technical aspects,” he emphasizes. “Financial considerations play a pivotal role in determining project success.”
As the construction industry continues to evolve, studies like Tampubolon’s will be instrumental in shaping best practices. By integrating these findings into project management strategies, stakeholders can navigate the complexities of large-scale infrastructure development more effectively, driving progress in the energy sector and beyond. The publication of this research in ‘Jurnal Pensil’ further underscores its relevance and potential impact on the industry.