p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 4 April 2024 http://jist.publikasiindonesia.id/
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1594
Causal Loop Diagram Model of the Owner's Critical Role in
the Success of Port Infrastructure Design-Build Projects
Budiman Nugraha Herdian
1*
, Tri Joko Wahyu Adi
2
Institute Teknologi Sepuluh Nopember Surabaya, Indonesia
Email: [email protected]
*Correspondence
ABSTRACT
Keywords: Design-Build;
Owner Role; Causal Loop
Diagram; Port
Infrastructure.
The research is expected to provide in-depth insight into how
the role of the project owner affects the success of port
infrastructure projects using a design-build approach, as well
as provide a basis for increased efficiency and effectiveness
in the implementation of the project. This research proposes
a causal loop diagram model to provide an overview of the
influence of the Owner's role in achieving the cost, time, and
quality success of the Port Infrastructure Design-Build
project. Research variables are obtained through in-depth
literature studies and interviews with project owners and
project practitioners experienced in design-build projects.
Based on the literature study in this study, it has been
formulated that the critical role of the owner is an essential
factor of the owner in carrying out the project to achieve the
goals that have been set.
Introduction
Design-Build (DB) project is a method of implementing construction projects
where the work's executor is responsible for designing and building the project. In this
method, the project owner deals with only one contractor or team responsible for the
entire process, from planning to execution (Ling & Leong, 2002)
In the context of projects in general, a project owner (owner) can be defined as an
organization or individual who owns a project and assigns tasks or works to other parties
to complete and provides feedback for the completion of the work. The project owner is
responsible for building the project and guaranteeing it will create significant
organizational changes (Andersen, 2012).
Project success is defined as achieving predefined project objectives, such as time,
cost, and quality, and delivering the desired business benefits (Alienta et al., 2023). The
increasing popularity of Design-Build requires parties in the construction industry to
understand each party's roles and responsibilities better to achieve project success
(HUSIN, 2015). As the party initiating the project, the project owner is vital in
determining the project objectives, needs, and expectations the Contractor must meet
(Karyadinata, 2019). The owner is responsible for strategic decision-making, including
DB contractor selection, budgeting, and risk management. The owner is vital in
establishing cooperation with DB contractors; both parties interact and communicate
Causal Loop Diagram Model of The Owner's Critical Role in The Success of Port Infrastructure
Design-Build Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1595
when designing and implementing the project. The owner is responsible for monitoring
and supervising the project to ensure that the project runs according to the plan, budget,
and schedule set (Zakiyya & Purnama, 2022).
Understanding the owner's role in managing a DB project can provide valuable
insight into the factors that influence project success and help you gain a more
comprehensive understanding of the owner's role at all stages of DB project completion.
This research helps the project owner make better decisions to improve the owner's role
and the future design-build project's success (Belferik et al., 2023).
This research focuses on the role of project owners in the success of Port
infrastructure DB projects. With the increasing popularity of Design-Build, a deep
understanding of the roles and responsibilities of each stakeholder has become crucial.
This study aims to propose a Causal Loop Diagram model to illustrate the role of the
project owner in achieving project success.
Research Methods
The roles and responsibilities of the Owner in this study are based on the results of
a literature study related to the vital role of the owner in Critical success factors that affect
the success of the DB project and the role of the Owner in resolving the main obstacles
to the implementation of the Design-Build project. A literature study or review allows
one to define variables relevant to the research and how those predetermined variables
are related.
Based on the results of an in-depth literature study of previous research, it is known
that essential owner factors significantly affect the success of the Design-Build project.
These findings were confirmed through interviews with experienced resource persons in
Port infrastructure design-build projects. It concluded the critical success factors of Port
infrastructure DB projects as owner role variables.
Semi-structured interviews are conducted with project owners and practitioners
experienced in project management Design-Build. This semi-structured interview aims
to gather information and perspectives from experts in the field, which can provide
additional insight into the relevant variables and factors that influence project success. In
addition, these interviews are also helpful in identifying variables that may not have been
revealed in the literature study.
The data obtained from both sources is then collected into variables that are used to
conceptualize the design of the Causal Loop Diagram model. This approach ensures that
the variables cover aspects relevant to the owner's role in the Design-Build project and
reflect current thinking.
Design conceptualization is done by creating a causal loop diagram (CLD) to show
causal relationships and relationships between variables to represent the identified
system. CLD will show how the relationship between these variables works to form a
system that can describe the relationship between owner role variables that affect the
project's success in the Design-Build project.
Budiman Nugraha Herdian, Tri Joko Wahyu Adi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1596
Causal loop diagrams help visualize how various variables in a system are related
to each other causally. This diagram contains words and arrows (Ogunlana et al., 2003).
Various relationships between variables forming the system will be seen at this stage.
Each relevant variable will be connected with an arrow. The arrow's tail indicates
causality/causation, and the arrow's tip or head indicates the effect/impact. Arrows
connecting variables on their tails will be positive (+) to the variable in the direction of
their head and negative (-) if vice versa.
Results and Discussion
This research focuses on the role of project owners in the success of Design-Build
projects, particularly in the context of Port infrastructure. This study aims to provide an
overview of system conceptualization through a causal loop diagram model that can
illustrate the role of the project owner in achieving the success of the Port infrastructure
design-build project.
Research variables were identified through in-depth literature studies and
interviews with project owners who have experience implementing Port infrastructure
Design-Build projects. After collecting data from both sources, the variables obtained
were used to conceptualize the Causal Loop Diagram model design based on cost, time,
and quality success.
The success indicator of the Design-Build project in terms of cost is the conformity
of the actual cost of the project with the planned budget (Lee, Jallan, & Ashuri, 2020).
Owner role variables that affect cost success are related to scope. The owner needs to
understand thoroughly the needs and scope of the project and have the ability to clearly
define the scope and objectives of the project (Gransberg & Molenaar, 2019) and have
similar project experience. Another owner's role in cost success is setting accurate project
cost estimates (Songer & Molenaar, 1997; Zulch & Kitshoff, 2021). In the contractor
selection phase, the owner needs to run a fair tender system (Hoseingholi & Jalal, 2017),
allow sufficient time to study and prepare offers (Ginsberg & Molenaar, 2019), and
compile comprehensive contract management. In the implementation phase of DB work,
the owner needs to have good project management skills and minimize the occurrence of
change orders. The variable role of the owner as a determining factor for cost success can
be seen in Table 1.
Table 1
Variable Owner Role in Cost Success
No
Owner's Role
Variable
1
Thorough understanding of the needs and
scope of the project
Understanding of project needs
and scope
2
Have the ability to define the scope of the
project precisely
Define the Project Scope
3
Have experience with similar projects
Owner Experience
4
Accurately estimate project costs
Accurate cost estimates
5
Have good project management skills
Owner Competencies
Causal Loop Diagram Model of The Owner's Critical Role in The Success of Port Infrastructure
Design-Build Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1597
No
Owner's Role
Variable
6
Running a fair tender system
Fair tender system
7
Allow enough time to study and prepare the
offer
Allocating Time to Prepare the
Proposal
8
Develop comprehensive contract
management
Comprehensive Contract
Management
9
Minimize the occurrence of change orders
Change order management
An indicator of the success of the Design-Build project in the aspect of time is the
suitability of the implementation time with the planned duration (Lee et al., 2020). In time
success, the critical role of the owner in the initial phase is to set the implementation
schedule and duration of work accurately, ensuring land readiness (Kehinde & Atanda,
2022) and complete formal Licensing management from authorized agencies (Abotaleb
et al., 2019) and have a particular organization as Project Management Office.
Meanwhile, in the implementation phase, the critical role of the owner is to have good
project management skills, have similar project experience, able to evaluate and assign
design details according to scope with efficient time, implement effective approval
mechanisms to evaluate and establish scope-appropriate design details; provide intense
attention and input in the detailed design process; solve problems and respond quickly to
eliminate project problems (Lee et al., 2020); implement good risk management;
implementing an effective K3L program (Kehinde & Atanda, 2022); implement effective
monitoring of contractor performance; implement suitable payment mechanisms and
adequate funding during the project, establish communication and good coordination
among stakeholders and minimize the occurrence of change orders. The variable role of
the owner as a determining factor for time success can be seen in Table 2.
Table 2
Owner Role Variables on Time Success
No
Owner's Role
1
Establish the execution schedule and duration
of work accurately
2
Have good project management skills
3
Have experience with similar projects
4
Able to evaluate and determine design details
according to the scope with efficient time
5
Implement effective approval mechanisms to
evaluate and establish scope-appropriate
design details.
6
Provide intense attention and input in the
detailed design process
7
Solve problems and respond quickly to
eliminate project problems
Budiman Nugraha Herdian, Tri Joko Wahyu Adi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1598
No
Owner's Role
8
Implement good risk management
9
Ensuring land readiness
10
Complete formal licensing arrangements from
authorised agencies
11
Establish good coordination among
stakeholders
12
Implement an effective K3L program
13
Implement effective monitoring of contractor
performance
14
Implement suitable payment mechanisms and
adequate funding during the project.
15
Have a dedicated organization as a Project
Management Office
16
Establish good communication with related
parties
17
Minimize the occurrence of change orders
Indicators of the success of the Design-Build project in the quality aspect are the
conformity of the quality of work with the expectations and conditions that have been
required. This is influenced by the role of the owner, namely, the owner has a particular
organization as a Project Management Office, ensuring the project uses the suitable
material; has a clear understanding of the technical functions of the materials used;
implements effective consent mechanisms; implement an effective quality control
system, (Kehinde & Atanda, 2022); have a clear understanding of the functional and
technical performance of project outputs; ensuring projects are implemented with
appropriate methods; implement risk management and implement an effective K3L
program (Kehinde & Atanda, 2022) on the methods used and ensure contractors have
carried out the necessary repairs (Lee et al., 2020) before the handover of work results.
The variable role of the owner as a determining factor for quality success can be seen in
Table 3.
Table 3
Variable Role of Owner in Quality Success
No
Owner's Role
Variable
1
Ensure the project uses suitable materials
Appropriate materials
2
Have a clear understanding of the technical
function of the material used
Technical materials
3
Implement effective consent mechanisms
Approval mechanisms
4
Implement an effective quality control system
Quality Control
Causal Loop Diagram Model of The Owner's Critical Role in The Success of Port Infrastructure
Design-Build Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1599
No
Owner's Role
Variable
5
Have a dedicated organization as a Project
Management Office
Project Management Office
6
Ensure that the contractor has implemented the
necessary repairs
Implement Repair
7
Have a clear understanding of the functional
and technical performance of project outputs.
Output Function
8
Ensure projects are executed in appropriate
methods
Method
9
Apply an effective K3L program to the method
used
HSE program
10
Apply good risk management to the methods
used
Risk management
The conceptual model describes the interaction between variables and sub-variables
obtained from the results of literature reviews and interviews with experts. Model
conceptualization includes causal loop diagrams to identify variables and sub-variables
that interact and affect each other in the system.
Design conceptualization is carried out to show causal relationships and
relationships between variables to represent the identified system. CLD will show how
the relationship between these variables works to form a system that can describe the
relationship between owner role variables that affect the project's success in the Port
infrastructure Design-Build project.
Each relevant variable will be connected with an arrow. The arrow's tail indicates
causality/causation, and the arrow's tip or head indicates the effect/impact. Arrows
connecting variables on their tails will be positive (+) to the variable in the direction of
their head and negative (-) if vice versa. Figure 1 conceptualizes the CLD model using
variables from literature studies and interviews verified by experts. Verification of the
model is carried out by confirming the model's construction so that the model's structure
can approach the accurate picture of natural conditions.
Budiman Nugraha Herdian, Tri Joko Wahyu Adi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1600
Figure 1 Causal Loop Model Conceptualization Owner Role Diagram
The causal loop diagram in Figure 1 shows the relationship between owner role
variables and the success of the Port infrastructure design-build project. The model is
formed from 3 (three) main sub-models, namely cost success, time success, and quality
success.
Cost success is influenced by the variable role of the owner in planning the initial
project budget (cost initial impact) and final project cost (cost final impact). In the Port
Infrastructure Design-Build project, the project's final cost is influenced by the owner's
role in managing changes in the contract (change order management) during the execution
of the work. The owner's role in the initial budget preparation process includes accurately
setting cost budget estimates and appropriately defining the project scope. Meanwhile,
the owner's role in carrying out a fair tender mechanism and comprehensive contract
management influences the initial price.
The owner's role variables influence time success in determining the initial duration
of work (time initial impact) and the duration of the end of work (time final impact). The
owner's role influences the determination of the initial duration of the project in setting
the implementation time accurately and having a similar project experience. The final
duration of the project is influenced by the owner's role in carrying out change order
management, effective communication, determination of design details according to the
scope with efficient time, and the ability of the owner to respond quickly to eliminate
project problems. It is influenced by the performance of contractors monitored through
effective monitoring mechanisms.
Based on the success aspect of the quality of the work, the Port infrastructure
Design-Build project is influenced by the level of defect (weight of defect) that occurs
during the work and the number of occurrences of each level of defect (count of defect).
Causal Loop Diagram Model of The Owner's Critical Role in The Success of Port Infrastructure
Design-Build Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1601
The owner's role influences the weight of defects in ensuring the use of appropriate
materials, implementing appropriate methods, and applying a sound quality control
system. Meanwhile, the number of defects is influenced by the owner's role in carrying
out quality control and ensuring that the contractor has carried out repairs to defects that
occur.
Conclusion
Based on the literature study in this study, it has been formulated that the critical
role of the owner is an essential factor of the owner in carrying out the project to achieve
the goals that have been set. The achievement of this goal is interpreted as the conformity
of actual costs with budget calculations, the suitability of implementation time with the
planned duration, and the suitability of the quality of work results with the expectations
and conditions that have been required.
The success of a Design-Build project and the owner's role factors that influence it
are dynamic reciprocal relationships in the phases of the project life cycle. In this study,
the Causal Loop Diagram model was used to model the dynamic and complex relationship
between the variables of the owner role and the success of the Port Infrastructure Design-
Build project. Conceptualizing the Causal Loop Diagram model will help the owner of
the Design-Build project improve the ability to manage the project effectively and
efficiently so that the owner can ensure that the Design-Build project implemented will
run smoothly and achieve the expected goals. This will ultimately positively impact the
owner's reputation and credibility and open up opportunities for success for new and more
complex projects. This model can be developed as a basic concept for building a dynamic
system simulation model that can be used to ensure that the managerial strategies applied
and decisions made are aligned with the project objectives, thus creating a work process
that is supportive of the achievement of the overall success of the Design-Build project.
Budiman Nugraha Herdian, Tri Joko Wahyu Adi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1602
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