Construction industry activities are increasing in Padang, West Sumatra, Indonesia. Stakeholders in the construction industry need to be prepared for the possibility of changes that do not align with field conditions. These changes are addressed through contract addenda. A contract addenda modifies the terms or conditions of the original contract and is used to efficiently manage project terms and conditions. It may involve extending contract dates or making complex adjustments, such as redefining payment schedules and deliverables. Changes in project implementation can lead to increased costs for each item, including labor costs, contingency costs, and scheduling issues. This study explores addenda resulting from changes in the scope of work, schedule, and price adjustments/escalations. To minimize the occurrence of contract addenda, this research aims to identify the factors contributing to contract addenda in construction projects in Padang City. A quantitative research design was employed, utilizing a structured questionnaire to collect primary data from 121 respondents through probability sampling. Data analysis was conducted using SPSS version 22.0, including validity tests, reliability tests, correlation tests, and multiple linier regression tests. The findings indicate that the dominant factors influencing contract addenda in Padang construction projects include the contractor’s work schedule being delayed compared to the planned schedule causing late budget disbursement; additional costs for each work item due to geographical conditions requiring higher technical specifications; and construction costs exceeding the budget due to rising material prices. The solution to minimizing the occurrence of contract addenda includes ensuring that the owner disburses the budget on time according to the contract. Before starting the work, construction stakeholders must estimate the possibility of additional costs due to field conditions. Additionally, the contractor must establish an agreement regarding material prices in case of price increases.

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Identification of Contract Addenda Construction in Padang City, Indonesia

  • Monika Natalia,
  • M. Isa,
  • M. Aknesia,
  • Ilham A. Syauki,
  • Badzlina H. Nesya,
  • R. Hidayati,
  • M. Misriani

摘要

Construction industry activities are increasing in Padang, West Sumatra, Indonesia. Stakeholders in the construction industry need to be prepared for the possibility of changes that do not align with field conditions. These changes are addressed through contract addenda. A contract addenda modifies the terms or conditions of the original contract and is used to efficiently manage project terms and conditions. It may involve extending contract dates or making complex adjustments, such as redefining payment schedules and deliverables. Changes in project implementation can lead to increased costs for each item, including labor costs, contingency costs, and scheduling issues. This study explores addenda resulting from changes in the scope of work, schedule, and price adjustments/escalations. To minimize the occurrence of contract addenda, this research aims to identify the factors contributing to contract addenda in construction projects in Padang City. A quantitative research design was employed, utilizing a structured questionnaire to collect primary data from 121 respondents through probability sampling. Data analysis was conducted using SPSS version 22.0, including validity tests, reliability tests, correlation tests, and multiple linier regression tests. The findings indicate that the dominant factors influencing contract addenda in Padang construction projects include the contractor’s work schedule being delayed compared to the planned schedule causing late budget disbursement; additional costs for each work item due to geographical conditions requiring higher technical specifications; and construction costs exceeding the budget due to rising material prices. The solution to minimizing the occurrence of contract addenda includes ensuring that the owner disburses the budget on time according to the contract. Before starting the work, construction stakeholders must estimate the possibility of additional costs due to field conditions. Additionally, the contractor must establish an agreement regarding material prices in case of price increases.