LIFE CYCLE COST ANALYSIS OF A PBC PILOT PROJECT FOR ROAD IN INDONESIA

• Main Authors: Betty Susanti, Reini D Wirahadikusumah, Biemo W Soemardi, Mei Sutrisno
• Format: Article
• Language: English
• Published: IIUM Press, International Islamic University Malaysia 2019-12-01
• Series: International Islamic University Malaysia Engineering Journal
• Subjects: life-cycle cost, maintenance, performance-based contract, road, traditional contract.
• Online Access: https://journals.iium.edu.my/ejournal/index.php/iiumej/article/view/1075
• ISSN: 1511-788X; 2289-7860

Implementation of Performance-based Contracts (PBC) for road maintenance in Indonesia still requires various studies, especially related to potential long-term cost efficiencies that can be achieved by the road agencies by shifting the application of traditional contracts to PBC. This study assesses the effectiveness of PBC compared to traditional contract implementation based on a case study on one of the PBC pilot projects in Indonesia. The effectiveness of the PBC reviews in terms of project life cycle cost efficiency was calculated. LCC calculations were conducted by considering the influence of the length of contracted road, the initial conditions of contracted road, and the duration of PBC project. The LCC calculation shows that the implementation of PBC generally has the potential to generate LCC efficiency compared to the traditional contract. This study also proved that the implementation of PBC can guarantee the performance of road services during multi-year contracts and also provide other benefits for the road agency and road users. ABSTRAK: Pelaksanaan Kontrak Berasaskan Prestasi (PBC) bagi penyelenggaraan jalan di Indonesia masih memerlukan pelbagai kajian, terutama berkaitan potensi keberkesanan perbelanjaan jangka panjang yang dapat dicapai oleh pihak agensi jalan dengan mengalihkan penerapan kontrak tradisional ke PBC. Kajian ini menilai keberkesanan PBC berbanding dengan pelaksanaan kontrak tradisional berdasarkan kajian kes pada salah satu projek perintis PBC di Indonesia. Keberkesanan ulasan PBC ini adalah dari segi kecekapan kos kitaran hayat projek. Pengiraan LCC dilakukan dengan mempertimbangkan pengaruh panjang jalan yang dikontrak, keadaan awal jalan terkontrak, dan jangka waktu projek PBC. Pengiraan LCC menunjukkan bahawa pelaksanaan PBC secara amnya berpotensi untuk menghasilkan kecekapan LCC berbanding dengan kontrak tradisional. Kajian ini juga membuktikan bahawa pelaksanaan PBC dapat menjamin prestasi perkhidmatan jalan selama kontrak multi-tahun dan juga memberi manfaat lain untuk agensi jalan dan pengguna jalan raya.