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Quality in Housing Project: Examining The Relationship Towards Labor Productivity, Rework and Customer Satisfaction Using PLS-SEM Approach

Housing market shows positive growth in Indonesia due to high demand for occupancy over the last few years. However, it has been well known that housing projects are prone facing various quality problems that bring adverse consequences for project performances, i.e., cost, schedule, productivity, and satisfaction of housing customers. The objective of this study is to investigate further relationship of quality performance against labor productivity, rework, and customer satisfaction. The hypothetical model was analyzed by using Structural Equation Model approach based on collected data through survey questionnaires of 45 respondents derived from site personnel of PT. Bumi Parama Wisesa which consist of several working divisions. The final model consists of 20 indicators in total reflecting all tested variables. From the results of the data analysis using PLS-SEM, it was revealed that quality performance has a strong relationship among the tested variables. Especially on customer satisfaction and rework variables. Customer satisfaction and rework have path coefficient value (β)0.325 and -0.558 respectively. With this result, it can be concluded that better-quality performance will improve customer satisfaction and rework reduction. The findings of this study provided important contribution for construction practitioners especially those who involved in the development of housing project to pay more attention in the implementation of quality management by developing effective and efficient project quality program. thus, labor productivity, reduction of rework and customer satisfaction can be significantly improved. Considering, housing projects vulnerable facing quality failure due to low-quality management on site were performed by mostly housing contractors in Indonesia.