The Impact of Material Distribution Delays on Time and Cost in the Livable House (RLH) Project in West Kutai Regency

Abstract

Material distribution delays are one of the critical factors that can significantly affect the efficiency of construction project execution, especially in remote areas such as West Kutai Regency. This study aims to analyze the impact of material distribution delays on project costs and profitability in the Livable House (RLH) Handling Project. A descriptive quantitative approach was applied through simulations comparing normal project conditions with scenarios involving material distribution delays ranging from 1 to 3 hours per day. The analysis results show that under normal conditions, the project cost was Rp571,693,587.77 (excluding VAT), with a projected profit of Rp57,169,358.78 (10%). However, when delays occurred, the project cost increased to Rp588,841,648.23 (+3%) for a 1-hour delay, Rp611,813,734.41 (+7.01%) for a 2-hour delay, and Rp643,961,441.36 (+12.63%) for a 3-hour delay. Consequently, the project’s profit declined significantly to Rp40,021,298.32 (1-hour delay), Rp17,049,212.14 (2-hour delay), and even turned into a loss of Rp15,098,494.81 under a 3-hour delay scenario. These findings affirm that material distribution delays are directly proportional to increased costs and reduced profit margins. Therefore, efficient material logistics management is a vital aspect in ensuring the success of construction projects, particularly those funded by government budgets.