Home > Published Issues > 2024 > Volume 13, No. 1, 2024 >
IJSCER 2024 Vol.13(1): 14-23
doi: 10.18178/ijscer.13.1.14-23

Current Challenges of Multidisciplinary Industrial Construction Projects: A Study of the EPC Design Model on Cost Performance in Indonesia

Tommy Utama Natasasmita*, Dyah Erny Herwindiati, and Basuki Anondho
The Post-Graduate Program in Civil Engineering, Universitas Tarumanagara, Jakarta, Indonesia
Email: tommy.natasasmita@gmail.com (T.U.N.); dyahh@fti.untar.ac.id (D.E.H.); basukia@ft.untar.ac.id (B.A.) *Corresponding author

Manuscript received June 1, 2023; revised August 7, 2023; accepted September 3, 2023; published February 22, 2024.

Abstract—The Engineering–Procurement–Construction (EPC) system challenges contractors by running the Engineering, Procurement, and Construction of a one-stop multidisciplinary service project. After receiving the EPC lump sum contract, the contractor bears the risk of cost changes arising from the contractor’s design, continuing the Front-End Engineering Design (FEED) as a reference in the bid price proposal. This study identifies EPC design risk in CPO Refinery plant-based agro-industrial projects in Indonesia (2013–2018) using cost-balancing options to obtain the lowest cost overruns or a maximum cost increase of 10% of the contract value after presenting an overview of the strategy and research tools. Subsequently, a suitable recommendation for the future directions of the EPC concept is proposed considering the tender, contractual, and engineering stages.

Keywords—design, Engineering–Procurement–Construction (EPC), Front-End Engineering Design (FEED), cost performance, agroindustry, multidisciplinary project

Cite: Tommy Utama Natasasmita, Dyah Erny Herwindiati, and Basuki Anondho, "Current Challenges of Multidisciplinary Industrial Construction Projects: A Study of the EPC Design Model on Cost Performance in Indonesia," International Journal of Structural and Civil Engineering Research, Vol. 13, No. 1, pp.14-23, 2024. 

Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License (CC BY-NC-ND 4.0), which permits use, distribution and reproduction in any medium, provided that the article is properly cited, the use is non-commercial and no modifications or adaptations are made.