Cost Analysis of Potentially Causes the Cost Overrun Occur in Housing Projects at Malang City, East Java, Indonesia

Abstract

This study aims to determine: 1) The most dominant factor in the cause of the overrun cost housing project in the Malang city. 2) What should be done to minimize cost overruns due to to these factors. Samples were some 30 personnel of Techniques Estimation, from 15 Developers who are members of the members of REI (Real Estate) Malang city. This study uses survey techniques by distributing questionnaires to technicians developers in Malang City. Data were analyzed using descriptive statistics methods. Based on the analysis results obtained: 1) The dominant factor causing cost overruns are: risk factors on the location and construction are not considered, the supervision was not done properly, Theft material, the influence of extreme weather, high bank interest rates. 2) Solution to minimize swelling due to the dominant factor is the implementer before starting the job should be to analyze the concept and study of economic and attention to the environmental impacts.

DOI: 10.5901/mjss.2016.v7n5p75