Analysis of Key Success Factors for Improving the Cost Performance of Green Retrofit River using Value Engineering

Abstract

Background: Rivers in Indonesia face serious challenges related to water quality and river management due to weak infrastructure governance, highlighting the need for cost-effective river restoration. Objective: This study aims to analyze the key success factors influencing the cost performance of Value Engineering (VE)-based green river retrofits guided by Envision v3. Method: The study employed a quantitative survey method involving 68 respondents, including project managers, field engineers, supervisors, consultants, and Watershed Authority personnel. Data were analyzed using multiple linear regression in IBM SPSS Statistics Version 25. Three independent variables (river characteristics (X1), Envision guidelines (X2), and Value Engineering practices (X3)) were examined for their effects on cost performance (Y). All constructs demonstrated strong reliability and validity. Results: The results confirmed that X1, X2, and X3 significantly and jointly influenced cost performance (F= 9.422; p < .001), yielding the regression equation: Y = 4.398 + 0.046(X1) + 0.045(X2) + 0.135(X3). Value Engineering exerted the strongest influence, as indicated by the highest regression coefficient (0.135). The ten most influential success factors identified through the mean rank analysis were predominantly associated with the Value Engineering dimension, particularly cost savings identification, functional clarity, structured planning, and top management commitment. Conclusion: The results demonstrate that disciplined Value Engineering practices can significantly improve the cost performance of green river retrofit projects.