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Skip to main content. Log In Sign Up. Improving Indonesian Construction Consulting Services. A study of this problem and a formulation of solutions to improve bappdnas situation are presented in this paper. A focus group discussion and a workshop with all stakeholders were conducted to formulate improvement actions that need to be taken. It was revealed that the problems faced include, among others, the limited number of professional engineers compared to the number of national consultancy companies, the uneven distribution of engineers in Indonesian regions, an imperfect procurement system, and low-quality work output in general.
It contributed, in A strong and reliable construction industry is highly needed to support infrastructure development. Bapenas consultants and professional engineers play an important role in this development. Bxppenas study area has been extended to include a more general perspective and conclusion.
In the construction stage, bappenaas engineer plays the role of conductor of the project, creating a good working atmosphere and harmony, not only with his abppenas but also with all other stakeholders. Tamin  indicates that, despite high expectations and important challenges, the Indonesian construction industry is in an unfavorable condition. Low competitiveness marked by low quality and productivity and a high construction accident rate are among the main problems to be faced.
The insufficient performance of engineering consulting services is deemed significant in causing this situation. This model comprises six broad factors for the analysis of competitiveness , i.
Standar Billing Rate Bappenas .pdf
Figure 1 The Single Porter Diamond . Moreover, the importance of collaboration or synergy between a consulting company and the other actors in a construction project, which will drive creativity and innovation, is also considered in the analysis. With regard to synergy, Syntec-Ingenierie  state that relations between clients and suppliers on the one hand, and between the various actors engineers, architects, contractors, operators on the other, should be re-organized for sustainable partnerships and improved integration of the roles of the actors convergent process.
Secondary data on consulting companies and professional engineers were offered by: The Ministry of Public Works.
Meanwhile, primary data were collected through: Interviews with respondents representing the abovementioned institutions. Real physical condition survey on samples of consulting companies by directly visiting their offices in the provinces of Jakarta, West Java, East Java, and North Sumatra to confirm the existence of the companies.
The research at the date stage was conducted in Jakarta and West Java provinces, and later extended to East Java and North Sumatra provinces to gain a more accurate perspective and conclusion. The following sections present the research results and analysis of situations revealed by the research as well as suggested improvement actions. The general objective of this law is to establish a strong, reliable, and competitive business structure. Unfortunately, the law contains at least 5 unusual conditions, i.
This situation has hampered the development of the construction industry and its competitiveness.
Standard Rate Bappenas .pdf
The survey results described in the following sections reveal that good nurturing from the government to strengthen consulting companies is lacking. Moreover, a special policy to advocate small and local consultancy companies as well as to encourage partnerships between them is still to be formulated.
Advocacy actions could actually take the form of special facilitations such as credit facility, bond and insurance offers, and engineers as well as management training. Grade 1 — individual consulting company, Grade 2 — small consulting company, Grade 3 — medium consulting company, Grade 4 — big consulting company. There are, nationally, around 7, consulting companies with the following distribution: Medium and big consulting companies Grade 3 and Grade 4 have a tendency to be centralized on Java and mainly in the provinces of Jakarta and West Java see Figure 2.
The rest of the consulting companies are distributed mainly among regions where infrastructure construction projects are located. There are apparently no collaborations between big and small consulting companies nor between companies domiciled in the Province of Jakarta and other regional provinces.
These collaborations will be much needed in the future as driver of creativity and innovation for the sake of added value.
West Java — although it is low — the number is relatively stable, with a slight tendency to decrease. Almost the same situation appeared in the 2 other regional provinces, i.
East Java and North Sumatra, affected by the same decentralization policy. These data indicate an unhealthy situation, where some companies are inactive and have not been seriously developing their business. The trend of interest decrease toward the consulting business, while in the meantime the state budget is increasing, could indicate that this business is not quite attractive at the moment.
The following sections describe the conditions that could cause this situation. The number of professional engineers around 26, is in fact quite small compared to the number of engineering consulting companies around 7, Moreover, not all of these professionals work in consulting companies.
Many of them work in other fields of construction services as well as in government offices, institutions, and local governments. There is also a large gap between the number of senior or professional engineers and junior engineers.
Improving Indonesian Construction Consulting Services Consequently, consulting engineers working in construction consulting projects often do not meet the requirements stated in the terms of reference. Moreover, it appears that many design and supervision consulting companies do not have permanently employed engineers. Existing engineers are not evenly distributed over all regions of the country. Figure 3 shows this distribution. Senior or professional engineers and engineers are generally concentrated on Java, mainly in the Jakarta and West Java provinces.
This situation has a direct implication for infrastructure construction quality in each region. Inkindo, Figure 3 Distribution of Engineers. In the same work it bappenass also stated that in a broader angle, citing the study done by Ng and Chow , consultants are suggested to have technical capabilities, management capabilities, financial capabilities, and quality assurance and control competency.
However, in reality the SBU is not very useful and does not reflect the real competency of consulting companies. In many countries including ASEAN countries Singapore, Thailand, and Malaysiacertificates of competency are given to engineers instead of to consulting companies. Consultant company quality certificate, such ISO, is normally voluntarily obtained. Actually, construction consulting companies in Indonesia still face difficulties in employing professional engineers, mainly due to the low interest of professional engineers to work in consulting companies which is related to low billing rates.
In the case of engineers one of the most significant rewards is their remuneration, which is normally paid according to the prevailing billing rate. Meanwhile, the Procurement Regulation in stated that billing rates could follow prevailing appropriate market rates.
Consequently, their contract value remains low. In general, technical capacity bappenss considered more important than financial capacity in the consulting company selection process.
The electronic procurement system is expected to offer abppenas information access, a shorter tender period, and lower overhead costs.
However, due to a limited human resources capacity, the system has not yet met the expectations. Consulting companies often have difficulties in accessing and downloading documents in the system. Moreover, work information is still given off-line in the procurement process. Besides, absence of real-time control is deemed to bappena lack of process transparency. An in-depth analysis has to be carried out to improve the existing system and to create a more appropriate electronic construction service procurement system.
Consequently, companies have difficulties in attracting professional engineers, improving competence, producing high quality output, and making company development efforts. Job satisfaction of engineers is generally low and they have to work for several projects simultaneously. Engineer requirements in a contract are often unfulfilled. Our survey indicates that some consulting companies seem to have a quite high rate of success in project tenders.
In public procurement, there are, for example, on average more than 10 projects per year offered by each work unit of the Ministry of Public Works. For each project, usually around 15 companies submit their bids.
Certain companies obtain rte for more than one project per year. The majority of these successful consulting companies submit tenders for more than 12 projects per year and succeed to win tenders as main consultant and as sub-consultant.
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Considering the high number of consulting companies, it seems that certain companies are dominating project tenders. However, due to low contract value, those who win tenders can only have small project profit and this condition in turn results in lack of funding for the development of human resources and consulting business.
In the short term, the government is expected to carry out the following activities: Completing the e-tendering infrastructure and guaranteeing a good execution mechanism; e. Improving or increasing government employee’s income. Improving Indonesian Construction Consulting Services Meanwhile, in the long term the government is expected to conduct the following activities: Improving good governance through a bureaucracy reform program, law enforcement, and merit system set up among stakeholders, employees of the Ministry of Public Works, and the Construction Service Development Board CSDB ; b.
Rearranging the consulting company certification system by, among others, integrating registration and licensing, and making certification of consulting companies voluntary; c. A more attractive environment could overcome the shortage of high-quality consulting companies and professional engineers.
More qualified and talented graduates would thus be bappfnas interested to work in public works projects. Enhancement of good governance in the construction services development seems to be the basic key to competitiveness. Transparency in consulting services procurement still has to be ameliorated.
Bioling appropriate electronic procurement system has to be created in selecting consultant companies. References  Tang, S. Remember me on this computer. Enter the email address you signed up with and we’ll email you a reset link. Click here to sign up. Help Center Find new research papers in: