The Correlation Value on Identification of Project’s Risks under Small Construction Company

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Ipak Neneng M Bukit
Yusnawati Yusnawati


Construction projects contain complexity in not only its activities, but also the matter of managing the whole project works. Risks occur in the project life cycle. Risk will cause negative impact to the project goal/s, and may result in project failure. Failure indicated from the cost performance, schedule performance and scope project whether they are implemented accordance to the plan or not. Thus, it will affect the deliverability of the project outcomes. The successful of project deliverability determines the construction process performance, which ultimately determines the company ability in managing project. Mostly those risks are uncertainty. That is why the construction industry is known as the most risky industry. To deal with the uncertain risks, people in the industry require having risk management system in their company. The system requires identification of risks under company responsibility. The purpose of this paper is to know characteristics of small construction company and their implementation of risks identification in their projects to be prioritized for analyzing and handling process. In this research, we assess the characteristics of small construction company and calculate the correlation value using Pearson correlation test to evaluate some major risks to be considered as priority risks. The data collection is using questionnaires that are distributed to 52 respondents from 60 companies. It is held in three districts; District Aceh Timur, District Aceh Tamiang and Kota Langsa,. The result is company characteristics/profile and priority risks under small construction company in the area.

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