Estimated Cost Offers for Small Contractors: Practices and Needs Implementation in Construction Project Management Application

The presence of small contractors remain a vital part of business development national construction service, because in terms of number of about 90% of the construction companies listed on LPJKN are small contractors. The ability of contractors minor in management of construction projects, as the name suggests, is still relatively low, which is a challenge in the business development of construction services in Indonesia. This paper present a further study of the effort to get a picture of the extent to which management practices for construction projects undertaken by small contractors. The study focused on how small contractors to estimate the cost of bidding and the use of the results of these estimates in project control.

In this study, a survey, using the workshop method, made to the classification of several small construction company in Bandung. Results from the survey provides an overview of the practice of offering cost estimates made, problems faced, and the potential development of systems that offer cost estimates associated with projects in environmental management of small contractors. Views on the practice of the estimated costs of this offering will be used as the basis for cost system design implementation and integration module offers these cost estimates on a construction project management computer applications for small contractors that have been developed previously.

The complexity of construction projects that are growing by day require management of resources better. Construction industry in Indonesia at present and the future will face a tough task to reconstruct infrastructure and production facilities that have been declining condition and build community, infrastructure and new industrial complexes. This certainly requires the ability of construction contractors (contractors) to be more efficient in the management of construction projects (Hendrickson 2000, Oberlender 2000).

A study conducted to assess the extent of readiness of construction contractors in Indonesia in an effort to increase the value (value) of a construction product to reduce waste (waste) that occur in the process of project implementation, or more commonly called the principle of lean construction (lean construction), has shown great weakness contractors in Indonesia in terms of planning and scheduling (planning and scheduling), evaluation, and control (Abduh and Roza, 2006).

The cause of these weaknesses is the human factor, and availability and use of technologies that facilitate the mastery and implementation of construction management in the field. On the other hand, as is known, developing a statistical data from the Institute for National Construction Services (LPJKN) shows that in Indonesia there are about 120,000 companies implementing construction and 90% of this amount is small contractors. This raises challenges in the development of construction services in Indonesia, given the ability of small contractors in construction project management is relatively lower than the large contractors.

Thus, a need is real, that it takes an effort to improve performance management of construction projects undertaken by small contractors. However, the real facts of how project management practices by small contractors are still required to better focus on core issues of project management weaknesses owned small contractors. It is expected that a real picture of the way the project management of small contractors that can provide a path to building the business to be done in the development of construction services in Indonesia, through the empowerment of small contractors. This paper present a further study of the effort to get a picture of the extent to which management practices for construction projects undertaken by small contractors.

The study focused on how small contractors to estimate the cost of bidding and the use of the results of these estimates in project control. Views on the practice of the estimated costs of this offering will be used as the basis for cost system design implementation and integration module offers these cost estimates on a construction project management computer applications for small contractors that have been developed previously. It is expected that construction project management computer applications that can participate in improving the ability of small contractors in Indonesia.