The Rector of ITB Discussed the Risks and Cost Estimation of Road Construction in a National Webinar of the Ministry of Public Works and Public Housing
BANDUNG, itb.ac.id—The Directorate General of Highways of the Ministry of Public Works and Public Housing of the Republic of Indonesia (PUPR RI) hosted a National Webinar for the Young Generation to commemorate the establishment of Road Day. The main theme of this webinar was "Road Connectivity for Advanced Indonesia," which took place on Thursday, December 16, 2021. The webinar lasted more than seven hours and featured speakers such as PUPR RI Minister Basuki Hadimuljono, Minister of the National Development Planning Agency Suharso Monoarfa, Director General of Highways Hedy Rahadian, and ITB Rector Prof. Reini Wirahadikusumah, Ph.D.
Basuki Hadimuljono, Minister of PUPR RI, gave the first presentation of the webinar. He stated that road construction will always undergo changes and improvements as the needs of the public develop. According to data, Indonesia's toll road construction was projected to reach 190 kilometers by 2021. Basuki encouraged the youths to grow into individuals capable of working professionally and with discipline, facing challenges, and possessing a strong, brave, and artistic spirit.
One of the speakers on the webinar was the Rector of ITB, who spoke about Risk Inclusion in the Estimation of Road Construction Costs. Prof. Reini is a member of the Management and Construction Engineering Expertise Group at the ITB Faculty of Civil and Environmental Engineering.
The Rector explained in her presentation that there will be several challenges in estimating the cost of road construction, one of which is uncertainty during the planning phase. From both an operational and a developer's perspective, the longer the planning period, the more likely it is that costs will change. As a result, when estimating the cost of road construction, several risks must be considered.
Stages in the Cost Estimation for Road Construction
The estimated cost of the construction project is also governed by the Minister of Public Works and Public Housing of the Republic of Indonesia's Regulation No. 28/PRT/M/2016 on Guidelines for the Analysis of Unit Prices of Work in the Public Works Sector. Prof. Reini proposed five steps for compiling road construction cost estimates, the first of which is to determine the estimation basis, followed by the preparation of the previously determined estimation basis. Then assess the risks as well as all the options. The next step is to review the estimates that have been made, and the final step is to share the estimation results with the appropriate parties.
In Indonesia, the estimation of road construction costs must be implemented properly. In practice, however, many contractors in Indonesia have yet to implement transparent cost estimates. Cost estimation is only adjusted based on previous project cost data and project risk estimates. Furthermore, the cost component is only known to the contractor and is not included in the bid price.
The goal of the PUPR Webinar for the Young Generation is to raise awareness of risk management elements as part of the process of integrating risk management elements into the institutional structure of the Directorate General of Highways. Maximizing the potential opportunities can result in organizational change, improved attitudes, increased knowledge of analysis, and overall commitment among the Directorate General of Highways. Since the construction industry is directly related to the environment and can affect institutional boundaries, the Ministry of PUPR must be the first to acknowledge it.
Reporter: Tarisa Putri (Chemical Engineering 2019)
Translator: Naffisa Adyan Fekranie (Oceanography, 2019)
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