Analysis of Contractor’s Performance Effect on Quality and Cost Efficiency Project Achievement on Road Development Project in Tulungagung Regency

This research was conducted to determine the factors that affect the contractor's performance towards the achievement of project objectives precisely the quality and cost of the road construction project in Tulungagung Regency and obtain the most dominant factors influencing it, so that it can determine the right strategy to minimize the failure of achieving the project objectives. Data analysis method used is factor analysis and Path analysis of answers from questionnaires distributed to 35 respondents from the Owner and Supervisory Consultants who understand the conditions and are directly involved in the work of road construction project in Tulungagung Regency in the 2017 budget year. F test found that factors X1 to X9 have a direct or indirect effect on the non-achievement of Quality Target (Y1) with Fcount = 7.260> Ftable = 2.262 and Cost Target (Y2) with Fcount = 3,600> Ftable = 2,228. But individually the factors that significantly affect Y1 are X2; X5; X6; X8; and X9 with t count> t table. On the other hand, the factors that significantly affect Y2 are X2; X5; X6; X9 and Y1 with t count >t table towards Y2 either directly or indirectly through Y1. The dominant factor that directly or indirectly affects the achievement of quality and cost targets are Factor X9 with the β Standardized Coefficient value of 0.480 and 0.638 respectively.