Causes of delay and cost overrun in Malaysian construction industry

The construction industry in Malaysia drives the economic growth and development of the country. However, the industry is plagued with delays and cost overrun which transforms what should have been successful projects to projects incurring additional costs, disagreements, litigation and in some case...

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Main Authors: Muhammad, Muhammad Tahir, Haron, Nuzul Azam, Ales @ Alias, Aidi Hizami, Diugwu, Ikechukwu A.
Format: Conference or Workshop Item
Language:English
Published: Springer Nature Singapore 2017
Online Access:http://psasir.upm.edu.my/id/eprint/64609/1/Causes%20of%20delay%20and%20cost%20overrun%20in%20Malaysian%20construction%20industry.pdf
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author Muhammad, Muhammad Tahir
Haron, Nuzul Azam
Ales @ Alias, Aidi Hizami
Diugwu, Ikechukwu A.
author_facet Muhammad, Muhammad Tahir
Haron, Nuzul Azam
Ales @ Alias, Aidi Hizami
Diugwu, Ikechukwu A.
author_sort Muhammad, Muhammad Tahir
collection UPM
description The construction industry in Malaysia drives the economic growth and development of the country. However, the industry is plagued with delays and cost overrun which transforms what should have been successful projects to projects incurring additional costs, disagreements, litigation and in some cases abandonment of projects. This research studied the causes of delays and cost overrun in the industry and ranked them according to their perceived importance to the contractors, with a view to establishing those to be addressed by the contractors. Online questionnaires were used for data collection for this research. A total of 69 responses were analysed using principal component analysis (PCA) (factor analysis) to identify the main causes. The result of the analysis showed that delay in preparation of design document, poor schedule and control of time, delay in delivery of material to site, lack of knowledge about the different defined execution methods, shortage of labour and material in market, and changes in scope of work were the main causes of delay and cost overrun. The identified causes if properly addressed would reduce the rate of delays and cost overrun in construction projects, thus enhancing the economic growth and development of the country.
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spelling upm.eprints-646092019-12-02T07:11:39Z http://psasir.upm.edu.my/id/eprint/64609/ Causes of delay and cost overrun in Malaysian construction industry Muhammad, Muhammad Tahir Haron, Nuzul Azam Ales @ Alias, Aidi Hizami Diugwu, Ikechukwu A. The construction industry in Malaysia drives the economic growth and development of the country. However, the industry is plagued with delays and cost overrun which transforms what should have been successful projects to projects incurring additional costs, disagreements, litigation and in some cases abandonment of projects. This research studied the causes of delays and cost overrun in the industry and ranked them according to their perceived importance to the contractors, with a view to establishing those to be addressed by the contractors. Online questionnaires were used for data collection for this research. A total of 69 responses were analysed using principal component analysis (PCA) (factor analysis) to identify the main causes. The result of the analysis showed that delay in preparation of design document, poor schedule and control of time, delay in delivery of material to site, lack of knowledge about the different defined execution methods, shortage of labour and material in market, and changes in scope of work were the main causes of delay and cost overrun. The identified causes if properly addressed would reduce the rate of delays and cost overrun in construction projects, thus enhancing the economic growth and development of the country. Springer Nature Singapore 2017 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/64609/1/Causes%20of%20delay%20and%20cost%20overrun%20in%20Malaysian%20construction%20industry.pdf Muhammad, Muhammad Tahir and Haron, Nuzul Azam and Ales @ Alias, Aidi Hizami and Diugwu, Ikechukwu A. (2017) Causes of delay and cost overrun in Malaysian construction industry. In: Global Civil Engineering Conference (GCEC 2017), 25-28 July 2017, Kuala Lumpur, Malaysia. (pp. 47-57). https://link.springer.com/chapter/10.1007/978-981-10-8016-6_5 10.1007/978-981-10-8016-6_5
spellingShingle Muhammad, Muhammad Tahir
Haron, Nuzul Azam
Ales @ Alias, Aidi Hizami
Diugwu, Ikechukwu A.
Causes of delay and cost overrun in Malaysian construction industry
title Causes of delay and cost overrun in Malaysian construction industry
title_full Causes of delay and cost overrun in Malaysian construction industry
title_fullStr Causes of delay and cost overrun in Malaysian construction industry
title_full_unstemmed Causes of delay and cost overrun in Malaysian construction industry
title_short Causes of delay and cost overrun in Malaysian construction industry
title_sort causes of delay and cost overrun in malaysian construction industry
url http://psasir.upm.edu.my/id/eprint/64609/1/Causes%20of%20delay%20and%20cost%20overrun%20in%20Malaysian%20construction%20industry.pdf
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