In the short run the project is success but in the long run it is failure. The reason is as below:-
1. Short run success evaluated based on stakeholders benefit and motive analysis:-
Benefit & Motivation (Stakeholders) Indicator: Success/Good Performance
1.Get highest share of operating profits.
Revenue was triple from IDR 100 Million to over IDR 300 million per year.
2.The revenue came from the city’s seventy percent share of the terminal operating profits.
3.Removal of binding public …show more content…
2. To the extent it is a success, what accounts for the good performance? To the extent it is a failure, why?
Table 1 shows good performance indicator in short run and however failure in long term because of the lacking of consideration during the preparation as well as construction stages of the project as mentioned above.
1. During the preparation stage, it didn’t receive support from the Indonesian central government which could be in the form of government policy, government warranty or provision of information regarding the national infrastructure network development plan.
2. No proper system for selection of the most capable contractor for constructing the project. The term capable is posses a sense of professionalism and experience of BOT which was actually lacking in this project. This lack of professionalism influenced the efficiency and effectiveness of the contractor, thus affected project performance.
3. Information dissemination and lack of communication system also played an essential part along with the project development failure. It fail to distribute the information to the right party at the right time,
4. No supporting managerial capabilities of human resources. Moreover, no continuous control over the construction process as well as the project management process No Continuous monitoring of the work progress in the project, no proper control on all