Examining the Economic Feasibility of Severely Damaged Abandoned Construction Projects: A Cost Continuation Ratio Approach

Abstract

Abandoned construction projects represent a persistent challenge in the construction sector, particularly for government-funded infrastructure, as prolonged inactivity often leads to structural deterioration and financial inefficiency. This study aims to evaluate the economic feasibility of continuing an abandoned reinforced concrete building project that has remained inactive for approximately ten years and has experienced severe structural failure exceeding 50%. The research employs a quantitative technical–economic evaluation approach using the Cost Continuation Ratio (CCR), which compares the total cost required to continue the project, including remaining construction works, structural repair and strengthening, and failure-related costs, with the replacement cost of constructing a new building with equivalent specifications. Structural condition assessment results indicate significant deterioration in primary structural elements, with an average failure rate of 56% across columns, beams, and slabs. Cost analysis shows that the total continuation cost is Rp 32,000,000,000, while the estimated replacement cost of a new building is Rp 55,000,000,000. The resulting CCR value of 0.58 places the project in the conditional feasibility category, indicating that continued project implementation may still be economically viable but involves substantial technical and financial risks. The study concludes that the CCR provides a practical, transparent decision-support tool for evaluating abandoned construction projects and can assist policymakers and project managers in making rational go/no-go decisions about project continuation.