Implementation of Risk-Based Quality Management (RBQM) in Controlling Quality and Cost Risks in the Widening Work of Hang Tuah Street, Airport Intersection-Batu Besar Intersection Section In Batam City

Abstract

A disproportionate quality cost structure was created as a result of the systematic failure to use RBQM, where failure costs far outweighed the initial expenditures in prevention. The entire recorded quality charges came to Rp2,527,699,700.32, which is 3.70% of the Rp68,284,483,721.22 final contract value. The real project failure costs are projected to be significantly higher than the stated value since Prevention Costs and Internal Failure Costs were not recorded as distinct categories. The external failure costs of Rp980,049,700.32 were equal to more than half of the entire supervision investment made, as shown by the ratio of external failure costs to appraisal expenses reaching 63.3%. Rp726,113,833.42, or 74.1%, of this sum. According to the relationship pattern discovered, risks that are not identified until the project is finished result in External Failure Costs (EFC), whereas risks that are fixed during implementation still result in Internal Failure Costs (IFC), which are absorbed in project overhead and are not explicitly documented. In the case of road infrastructure projects, the two aforementioned results show that the RISK → QUALITY → COST chain is a tangible and quantifiable causal mechanism rather than just a theoretical framework. Inadequate RBQM implementation immediately leads to quality failures that go unnoticed, which eventually results in expenses that are significantly higher than those that might have been avoided in the first place