Stakeholders’ Perception on Critical Cost Variation Factors in Malaysian Building Projects
Effective cost management is one of the prime requirements for successful completion of construction projects. However, deviation from initially planned cost had been prevalent in construction projects. Cost variation has become a frequent phenomenon in construction projects and Malaysian building projects has no exclusion. This paper aims to establish the critical factors instigating cost variation in Malaysian building projects. Extensive literature review and field survey were two main methods for conducting this study. 34 factors causing cost variation were identified through deep literature review. A questionnaire survey based on identified factors, was carried out among construction stakeholders: clients, consultants and contractors involved in handling of building projects in Malaysia. The collected data was analyzed using SPSS V22 software, which enabled the ranking of factors based on their Mean Value. The results of the survey indicated that (1) fluctuation in cost of materials, (2) improper planning, (3) Incompetent main contractors, (4) poor site management, (5) and client financial problems were top five critical factors causing cost variation in building projects. The inferences drawn in this study can serve as a guide lines for construction stakeholders to achieve effective cost management in building projects.
Mahamid, Ibrahim, and Nabil Dmaidi. “Risks Leading to Cost Overrun in Building Construction from Consultants’ Perspective.” Organization, Technology & Management in Construction: An International Journal 5, no. 2 (December 15, 2013): 860–873. doi:10.5592/otmcj.2013.2.5.
P. E. D. Love, C. Sing, B. Carey, and J. T. Kim, “Estimating Construction Contingency : Accommodating the Potential for Cost Overruns in Road Construction Projects,” J. Infrastruct. Syst., vol. 21, no. 2, pp. 1–10, 2014. Doi: 10.1080/15732479.2012.715173.
K. Amoa and S. Allotey, “Cost overruns in Building Construction Projects : A Case Study of a Government of Ghana Project in Accra,” Dev. Ctry. Stud., vol. 4, no. 24, pp. 54–65, 2014.
Aziz, Remon Fayek. “Factors Causing Cost Variation for Constructing Wastewater Projects in Egypt.” Alexandria Engineering Journal 52, no. 1 (March 2013): 51–66. doi:10.1016/j.aej.2012.11.004.
Sohu, Samiullah, Abd Halid Abdullah, Sasitharan Nagapan, Ashfaque Ahmed Jhatial, Kaleem Ullah, and Imtiaz Ali Bhatti. "Significant Mitigation Measures for Critical Factors of Cost Overrun in Highway Projects of Pakistan." Engineering, Technology & Applied Science Research 8, no. 2 (2018): 2770-2774.
Anastasopoulos, Panagiotis Ch., John E. Haddock, and Srinivas Peeta. “Cost Overrun in Public-Private Partnerships: Toward Sustainable Highway Maintenance and Rehabilitation.” Journal of Construction Engineering and Management 140, no. 6 (June 2014): 04014018. doi:10.1061/(asce)co.1943-7862.0000854.
Kostka, Genia, and Jobst Fiedler, eds. “Large Infrastructure Projects in Germany” (2016). doi:10.1007/978-3-319-29233-5.
Žujo, Vahida, Diana Car-Pušić, and Aida Brkan-Vejzović. "Contracted price overrun as contracted construction time overrun function." Tehnički vjesnik: znanstveno-stručni časopis tehničkih fakulteta Sveučilišta u Osijeku 17, no. 1 (2010): 23.
Koushki, P. A., K. Al‐Rashid, and N. Kartam. “Delays and Cost Increases in the Construction of Private Residential Projects in Kuwait.” Construction Management and Economics 23, no. 3 (March 2005): 285–294. doi:10.1080/0144619042000326710.
Mahamid, I., and A. Amund. "Analysis of cost diverge in road construction projects'." In Proceedings of the 2010 Annual Conference of the Canadian Society for Civil Engineering, vol. 9, p. 12. 2010.
Ullah, Kaleem, Abd Halid Abdullah, and Sasitharan Nagapan. "A framework for avoiding cost overruns in Malaysian construction projects." International Journal of Advanced and Applied Sciences 3, no. 3 (2016): 28-31.
Shehu, Zayyana, Intan Rohani Endut, Akintola Akintoye, and Gary D. Holt. “Cost Overrun in the Malaysian Construction Industry Projects: A Deeper Insight.” International Journal of Project Management 32, no. 8 (November 2014): 1471–1480. doi:10.1016/j.ijproman.2014.04.004.
Abdullah, Mohd Razaki, Ismail Abdul Rahman, and Ade Asmi Abdul Azis. "Causes of delay in MARA management procurement construction projects." Journal of Surveying, Construction and Property 1, no. 1 (2010).
Nurul, Alifah Jatarona, Md Yusof Aminah, Ismail Syuhaida, and Chaang Saar Chai. "Public construction projects performance in Malaysia." Journal of Southeast Asian Research 2016 (2016): 1-29.
S. Kim, K. N. Tuan, J. Do Lee, H. Pham, and V. T. Luu, “Cost Overrun Factor Analysis for Hospital Projects in Vietnam,” KSCE J. Civ. Eng., vol. 20, no. 2, pp. 519–529, 2017. Doi: 10.1007/s12205-015-0316-1
Wanjari, Swapnil P., and Gaurav Dobariya. "Identifying factors causing cost overrun of the construction projects in India." Sādhanā 41, no. 6 (2016): 679-693. Doi: 10.1007/s12046-016-0498-3.
Nasir, Abdur Rehman, Hamza Farooq Gabriel, and Rafiq Muhammad Choudhry. "Cost and time overruns in highway projects of Pakistan." In Sixth International Conference on Construction in the 21st Century, Kuala Lumpur, Malaysia, pp. 69-76. 2011.
Allahaim, Fahad S., and Li Liu. “Causes of Cost Overruns on Infrastructure Projects in Saudi Arabia.” International Journal of Collaborative Enterprise 5, no. 1/2 (2015): 32. doi:10.1504/ijcent.2015.073176.
Enshassi, Adnan, Mohan Kumaraswamy, and Jomah Al-Najjar. “Significant Factors Causing Time and Cost Overruns in Construction Projects in the Gaza Strip: Contractors’ Perspective.” International Journal of Construction Management 10, no. 1 (January 2010): 35–60. doi:10.1080/15623599.2010.10773137.
H. P. Moura, J. C. Teixeira, and B. Pires, “Dealing With Cost and Time in the Portuguese Construction Industry,” in CIB World Building Congress, Cape Town, South Africa, 2007, pp. 1252–1265.
Olawale, Yakubu Adisa, and Ming Sun. “Cost and Time Control of Construction Projects: Inhibiting Factors and Mitigating Measures in Practice.” Construction Management and Economics 28, no. 5 (May 2010): 509–526. doi:10.1080/01446191003674519.
S. D. Sousa, E. M. Aspinwall, and A. G. Rodrigues, “Performance measures in English small and medium enterprises: survey results,” Benchmarking An Int. J., vol. 13, no. 1/2, pp. 120–134, 2006. Doi: 10.1108/14635770610644628.
- There are currently no refbacks.
Copyright (c) 2018 Samiullah Sohu
This work is licensed under a Creative Commons Attribution 4.0 International License.