Risk Analysis in Feasibility Study of Building Construction Project, Case Study: Property of PT. Perusahaan Gas Negara (Persero) Indonesia

Abstract

Investment in construction project is able to give higher benefit beside of its high uncertainty. The uncertainty depends on many risk factors. The influence of the identified risk then has to be evaluated and calculated towards the project feasibility. Before investment, the feasibility of the project has to be done that gives figures of cash flow on the following years. This can be one of the considerations for making a decision whether this project is feasible or not. Risks that overshadow the construction project have to be calculated as an influential factor towards the failure of a project. This paper aims to know the feasibility of project investment by calculating the risk actors and treatment. Risk probability matrix is used to obtain the risk priority, which then continued with financial analysis for the feasibility study and also sensitivity analysis. The study shows that the parameter investment value will be increased when treatment is done on risk.