A Study on Project Delays in Malaysian Construction Industry

Chew, Li Teng (2020) A Study on Project Delays in Malaysian Construction Industry. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Construction industry has become one of the most potential economic growth driver and significant contributors to Malaysian productivity level. However, as compared to other developed countries, Malaysia still lags behind them with a big gap. This is due to the decrease in the construction output on recent years due to several reasons and delay of projects is one of the significant factors. Construction delays are considered as the most common phenomenon Malaysian construction industry. Many researchers are working on this statement by focusing this issue on the construction team players such as consultants, contractors, owners and the government. Construction delays turned into an important portion of the project’s construction existence. Despite the advancement of the latest technology, delay in the construction projects still often happens. Hence, the objectives of this paper is to analyse the factors of delay, effects of delay and the mitigation to control delay. This information in the literature review are that gathered from different researchers with different types of construction, different countries, different periods and different types of delay. A questionnaire survey was administrated to the contractors’ companies and 355 sets of it were collected. Descriptive analysis which consists of mean and ranking was carried out to all the factors, effects and mitigations to control delay. Moreover, the data was also being analysed using linear regression and correlation analysis to identify the relationship between the factors of delay and the effects of delay in Malaysian construction industry. The results revealed that almost all the projects in Kuala Lumpur and Selangor are facing the problem of delay and it implies that all parties shall work together in order to minimise the occurrence of delay in the progress of the works. The results appeared that in the factors of delay, delay in approving permits by the local authority (external-related factors of delay) ranked the first, followed by the delay in finance and payments of completed work (owner-related factors of delay) and improper management by contractor (contractor-related factors of delay). As for the effects of delay, it is no doubt that time overrun and cost overrun are the most significant effects of delay in a construction project. For the mitigations to control project delay, interpersonal control ranked the first followed by management control and technology control. This indicates that these three mitigations are the extremely effective methods to control delay in construction projects. To overcome the limitations of this study, further studies could explore other stakeholders’ perception of exact project type either the building or civil, public or private projects only and in other geopolitical zones not covered in this paper.