Investigation of Critical Risk Factors and Level of Risk for Environmentally damage induced by house projects

Document Type : Research Paper


Universitas Muhamamdiyah Surakarta, Jl Ahmad Yani Po. Box No. 1 Pabelan, Sukoharjo, Jawa Tengah, Indonesia



Expansive market opportunities and attractive profit prospects in the housing development sector encourage many business people to be interested in investing in this sector. The significant number of the risk factors which arise during the housing development process and weaknesses of developers in managing them have resulted in some developers failing to achieve projects goal. This study aims to identify critical risk factors and determine the factors that have the highest level of risk in a housing development project in Semarang, Indonesia. The research was conducted using a structured survey questionnaire. The mean score statistical technique was used in data analysis with SPSS version 26.0 software to determine critical risk factors. The level of risk is determined based on the frequency of occurrence of the risk and the severity of the risk. The results show that there are 26 critical risk factors for housing development projects. The high land acquisition price, unmanaged cash flow and business competition are the factors that have “Very High Risk” level of risk. In addition, there are twenty-one factors with “High Risk” level of risk, and two factor with “Medium Risk” level of risk, which embraces the risk factor for natural disasters as well as utility and material delays. This study contributes to the understanding of the critical risk factors in housing development for housing developers to manage project risks.


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