Analysis of Dominant Factors in Contingency Costs for Housing Development Projects in Malang Raya

Cost contingency has an important role during construction, as accurately estimating project contingency costs is one of the keys to successful project management. Mismanagement of these funds can lead to significant issues. When estimating the cost of a housing project, determining the exact amount of costs to incur during construction is not a certainty. Due to factors that are difficult to predict, there will be losses that require a certain amount of costs to be put toward indirect costs, specifically risk costs, which are also known as contingency costs in this case. This study investigates the dominant factors influencing contingency costs in housing projects and determine the percentage of contingency costs. Utilizing multiple linear regression analysis, data were collected through questionnaires distributed to experienced respondents, focusing on 79 housing projects in Malang City, Malang Regency, and Batu City. The findings reveal that contingency costs, ranging from 5% to 7.5%, are significantly affected by design, financial, human resources, and technical factors.