Construction Disputes Caused by the Settlement of the Final Account among Developers And Contractors

Pang, Siok Ying (2020) Construction Disputes Caused by the Settlement of the Final Account among Developers And Contractors. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

The research is conducted with the purpose to mitigate and prevent the dispute and delay of the closing of the final account in the construction industry. The Final account is the conclusion of the contract sum that shall include all the necessary adjustments, and agree upon by the Employer. Problems regarding the final account were determined through several, indicating the seriousness of the final account issue in the current construction industry. Moreover, the final account issue has persisted in the construction industry for several decades with significant factors influencing the closure of the final account, including contractor-related factors, management-related factors, and the contract as well. Impacts on the construction industry were also pointed out in this study due to the final account dispute. The remedy for the final account dispute was investigated by referring to the previous studies. Quantitative analysis is being selected where a questionnaire was distributed to the construction practitioner in the Selangor areas. The results were tabulated, analysed, and discussed in detail. A relationship between the value of projects involved and experience in final account disputes has been established. Besides, the result analysed further explained that the Contractor disagreed with the valuation work achieved as the most severe factor causing final account disputes and delay through the analysing and of Relative Importance Index (RII) and Mean. The most significant impact on the construction industry due to final account disputes and delay is that the Contractor’s and the Supply Chain’s financial would be affected. Meanwhile, the most preferable remedy also ranked via the RII method, where the adjudication dispute resolution comes priority of the industry. The results further contributed to the industry, by achieving several new findings.