Project Delivery Systems and Project Performance: A Causal Relationship Analysis of Indonesian Stakeholders

The Indonesian construction industry is a key factor that drives economic growth, but it is plagued by unresolved project delivery issues that can yield lower levels of project performance. Project delivery systems (PDSs) have faced traditional barriers to successful projects. This study aimed to demonstrate how each stakeholder manages and participates in the activities of PDSs and how different factors affect project performance. It further explored the multifaceted association between individual aspects of PDSs and overall project performance.

A comprehensive literature review identified nine aspects of PDS and nine project performance indicators. A questionnaire was used to gather data clarifying the relationship between PDSs attributes and project performance, as analyzed through multivariate regression according to stakeholder input.

The results showed that the dependence on the design-bid-build (DBB) model of PDSs in Indonesia is quite high. It was found that PDSs should provide justification for their choice of cooperation contract model, particularly regarding compensation and rewards, as these factors significantly affect cost performance (β 0.850, p-value 0.0312*) based on the owner's point of view.

The unexplored pre-construction phase might reduce numerous risks in Indonesia‘s construction. It was found that Indonesia's construction industry lacks IPDS contractual norms and that DBB PDS operates poorly.

The findings require further investigation, which is essential for stakeholders and Indonesian regulators, highlighting the need for optimal PDS management to improve building construction performance in the Indonesian context. They also aid in refining contracts and clarifying the scope of construction projects.