Impact of Pandemic Measures on Construction Project Performance in Indonesia

Abstract

Covid-19 has resulted in recession and economic downturn. In Indonesia, the pandemic and its measures pose challenges for construction companies. This study aims to identify the impact of the Covid-19 pandemic measures on the performance of construction projects in Indonesia. This study identifies five potential factors which affect project performance, namely: (1) challenge in implementing social distancing, (2) movement restrictions, (3) challenge of working from home, (4) planning for limiting the number of workers, (5) continuous use of PPE. A cross-sectional survey is performed with targeted respondents of top-level management of Indonesian construction firms. The primary analysis was conducted by using Partial Least Square (PLS). Results indicate that overall construction has two variables affect project performance and industrial construction has three variables affect project performance. This result is essential for the top-level management to ensure their awareness of factors that affect performance on construction and facilitate the construction players to overcome the five factors mentioned in this paper.