Assessing the Effectiveness of Procurement Risk Mitigation on Cost, Quality, And Schedule Performance in Industrial Construction Projects
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Procurement-related risks are among the primary factors affecting cost, quality, and schedule performance in industrial construction projects. While previous studies have mainly focused on risk identification and assessment, limited empirical evidence exists regarding the effectiveness of mitigation measures implemented during project execution. This study evaluates the effectiveness of procurement risk mitigation practices and their contribution to project performance. A qualitative case study was conducted on a polymer industrial construction project in Cikande, Indonesia. Data were collected through Focus Group Discussions (FGDs) involving key project stakeholders and supported by project document reviews, including risk registers, procurement records, quality reports, and project schedules. The findings reveal that only 10 of the 20 procurement risks identified during project planning materialized during project execution, indicating the dynamic nature of procurement risk. The major risks included delays in critical activities, material approval bottlenecks, supplier dependency, specification changes, and material price escalation. Mitigation measures such as schedule acceleration, supplier diversification, enhanced coordination, and quality control were found to reduce the adverse impacts of procurement risks. Overall, procurement risk mitigation contributed positively to maintaining project performance by minimizing schedule disruptions, supporting quality compliance, and limiting additional costs.
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