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Soekarno Hatta airport’s express railway construction project using PPP

scheme needs a very high investment cost. Therefore, requires innovative and

creative efforts in the construction design to achieve an attracktive result to

investors in the project financing stage. One of the efforts is to select the

railway technologies to get an optimal design concept.

This research purposed to identify varies range of technology that will be

selected in Soekarno Hatta International airport express railway

construction. This research applies value engineering with life cycle cost

analysis to determine the impact of technology selection in investment

through cost optimization as its methodology.

Construction industry plays a substantial role in a country’s national economy, irrespective of the country’s levels of economic development.  Unfortunately,  the  issue  of  inefficiency  and  lack  of  quality  in  construction  projects  have  been  a  major  concern  for construction industry players. Responding to this situation, this research is addressed a need to improve construction project performance using  quality  management  (QM)  and  value  management  (VM)  approaches.  This  research  is  employed  the  integration  of  design, construction and post construction stages in order to support holistic views on construction projects scenarios.

This research employs a quantitative approach through a questionnaire survey distributed to construction industry stakeholders. The questionnaire  consists  of  three  parts  discussion  include  :  the  identification  of  critical  success  factors  and  barriers  existed  in  each construction stage in building projects, identification of additional functions in building projects, and total investment cost for building project. As the significant findings, this research evaluates how the understanding of quality and its process is perceived and identifies the expected additional functions that can be applied to deliver efficiency and more value-added construction projects.

Private Public Partnership (PPP) plays an important role on the infrastructure development, particularly for developing countries. The basic concept of PPP projects is to achieve value for money (VFM) and clear risk sharing between government and VFM analysis is expected to be carried out at early stage to determine the financial feasibility and risk sharing on infrastructure projects. The PPP regulation  in  Indonesia     is  addressed  by  Presidential  Regulation (Perpres)  No.  13/2010  governing  Public-Private-Partnership  in infrastructure procurement to encourage investor private sector to participate in financing infrastructure projects in order to overcome limited budget of the government. However, there are also some failures that impact the projects offered don’t meet investor’s interests because a lack of feasibility study of the project offered. 

This research is proposed to improve the quality of the feasibility study phase of a project infrastructure by implementing the value engineering in Public Private Partnership investment process in Indonesia. Value engineering is a methodology that has been widely applied in many countries to provide added value and to enhance maximum result for both project and product development in terms of improvement on quality, technology, efficiency and innovation. The research methodology is conducted by a combination of qualitative and quantitative approaches through questionnaire surveys both online and offline, action research and focus group discussions. A model for applying VE on PPP process is proposed, meanwhile results and discussions from the questionnaire survey including internal and external risk identification that may affect project performance, identification of additional functions for innovation and key success factors of Public Private Partnership (PPP) scheme in Indonesia to finance infrastructure project are presented on this paper. The study case will be implemented on Soekarno-Hatta International Airport Rail Link (SHIARL).

Value Engineering is a systematic method that using function analysis to improve value of a project. The proper application of V W method is expected to deliver best value of a project in terms of quality, technology, efficiency and innovation. This research  is designed to evaluate the application of  VE method in design stage of construction building in Indonesia. Based on the result of questionnaire survey and interviews, it was  found that the application of VE in the design stage has not been optimized  applied due to the lack  of VE  understanding and incomplete VE process. Therefore a recommendation on a  proper VE method based on International standard is proposed to solve problems encountered in Indonesia.