ANALYSIS OF THE INFLUENCE OF CONTRACTOR CAPABILITY AND EXTERNAL PROJECT FACTORS ON PROJECT PERFORMANCE (Case Study of Bengkulu City Hall Construction)

Abstract

This study investigates the partial and simultaneous effects of Contractor Capabilities and External Project Factors on Project Performance in the Bengkulu City Hall Construction Project. A quantitative approach was employed using multiple linear regression analysis. The study applied total sampling, with 84 workers directly involved in the project serving as respondents. The results indicate that: (1) Contractor Capabilities significantly influence Project Performance, with a positive regression coefficient, suggesting that higher contractor capabilities lead to better project outcomes, while lower capabilities reduce performance; (2) External Project Factors also have a significant positive effect, indicating that supportive external conditions enhance overall project performance; and (3) Together, Contractor Capabilities and External Project Factors explain 84% of the variance in Project Performance, with the remaining 16% accounted for by other unobserved factors. These findings highlight the importance of enhancing contractor management quality and managing external risks as key strategies to improve construction project performance, especially within local government contexts.