FACTORS THAT CONTRIBUTE TO THE DELAYED OR ABANDONED OF THE CONSTRUCTION PROJECTS IN
In the 21st century, there are various visions and objectives developed by the Government in order to raise the quality of life of Malaysian citizenship. One of the visions is Vision 2020 that is proposed by Tun Dr. Mahathir Mohamad which is to create
Though today's construction industries are using advanced and sophisticated technologies but there are still some construction projects failed to complete on time and being abandoned. Yet, today, the issue on delayed and abandoned of construction projects is the not a new issue, however, they are always debatable and appeared about these whether through mass media or media electronic.
In relation to that, it caused difficulties to certain people, such as, the project of residential or house development which practice 'sell and build' will cause difficulties to the buyer to have their house on the fixed time. They have to pay rental for the house that they are now staying and at the same time they have to pay for the new house that they assume to finish on the fixed time that they have informed. So that caused difficulties to them especially to the people with low income per month to pay for two houses. Yes, although they, (the purchasers) is given compensation on that but the compensation is not get on the dot, they also have to use their own money while waiting for the reimbursement, so, obviously, this situation affect the financial budget of certain people.
Although these issues many times been debatable and complaining through mass and electronic media, yet still the same problem encounter. Everybody put a blamed to each other, starts to complain and argue without trying to find the solution. We, can see, today this issue is one of the most hot issue which always publish in the newspaper and also television. Some of the issues are solved but some still not.
As a consequence of this issue I am curios to know or to find out based on various question that I have creates such as why these happened? Whose fault? Who should be blamed? Therefore, this project paper is to propose my research on construction project problem that is delayed and abandoned projects. Based on the problem I would like to find out the factors contribute to projects failed to complete on time.
2.0 Aim of the Study
The aim of this study is to identify and analyze why projects failed to complete on time, to observe the affect of the problem and to propose the appropriate solution in order to overcome or reduce the problem occurred.
3.0 Objective of research:
a) To find out what are the factors that contribute to the delayed and abandoned of construction the projects.
b) To observe the effects of the problematic constructions projects towards the people, construction itself and parties involved in the projects.
c) To discover the appropriate solution that has been taken in preventing the delayed and abandoned project.
4.0 Literature review
Nowadays, there are many construction projects being delayed or abandoned. As according to Haslina (2005), “Currently, the construction industry is quite disappointing where there are many projects fail to be completed on time, and even worse some of the projects are being abandoned by irresponsible contractors or developers”. Actually, what is delay? According to Macmillan Dictionary (2002), the term delay is defined as a situation in which something happens later or more slowly than you expected. In addition, according to Hashim (2001), delay is a loss of time in construction project. However, in accordance with Oxford Fajar (2000), abandon can be defined as give up completely especially something has begun.
Based on observation in the newspaper, there are about RM 3 billion have been spent in order to revive the abandoned projects and RM 500 million to repair the damages. These situations normally occur due to poor planning and monitoring of the projects. Therefore, based on the statement, it can be said that one of the problems that caused to the delayed and abandoned of the projects is a poor management of the construction projects.
Furthermore, according to Housing Ministry and Local Government (2001), it is reported that at the end of year 1999, there are about 493 abandoned projects in the country, whereby the top three highest number of abandoned project was Selangor state which is about 78 projects (15.82%), followed by Perak, 77 projects (15.62%) and Johor, 66 projects (13.41%) which has been abandoned. Although it is reported that they are many projects abandoned but some is been revived which is proved by Kamarul Syahril and Lilawati (2004), stated that, from 493 abandoned project has been reported, there are about 317 (64.3%) out of 493 abandoned projects has been revived.
Besides, poor management of the construction projects, there are many factors direct to abandon and delay project. One of the factors why project failed to complete on time that delayed or abandoned is because of the developer faced financial problem. This problem is come across by the officer of Kuala Selangor District Council, Mohd Saad (2006), which mentioned that the reason why low cost of 5 storey apartment at Mukin Ijok project, Bandar Alam Perdana, in Selangor abandoned is due to the developer LBCN Dev. Sdn. Bhd that faced financial problem.
On the other hand, the delay of the construction projects is commonly to find. Almost all the construction projects are deal with this problem. I can say it is 90% of the construction projects are completed behind the scheduling. There are several factors of the delayed and abandoned of the projects can be detected. As according to (Hensey, 1993; Keith, 1995), there are many reason contribute to delay such as shortages of materials, labours, equipment and financial factor.
5.0 Problem statement
There are many issues of construction projects that delayed or failed to complete on time. These problems give impacts to the parties involved, individual and the project itself. However, every problem should have the solution similarly to this condition. Therefore, the matters that I want to encounter are as the following accordingly by the sub topic.
a) Factors contribute to the delayed and abandoned of the projects
- contractor's attitude
- financial constraint
- poor management
This is because the main contractor misuse on spending the advance payment that he should spend it on the project but he did conversely by use that money on his personal expenses. Thus, he cannot continue the construction work due to the financial constraint as a consequence of his misuse the advance payment. Besides, his attitude is very important as it affect the reputation of the management of the construction works. In relation to that, the project abandoned also is because of the poor management by the contractor in managing his cash flow towards the project. However, there is also the financial constraint faced by the client subjected to the abandon of a project in which the client has not enough money to spend on the project.
· Problem in providing the interim payment
· Poor in conducting soil investigation
· Variation orders – design changes
· Late in giving architectural detail drawing
· The client delay in confirming the architecture items
· Material shortage – sand, concrete and steel
The delayed of the construction projects is due to poor in conducting soil investigation as while the construction running, the contractor found rock on site which is not stated in the bill of quantities, whereas the existing of rock should be known during the feasibility study. Therefore, it considered as one of the variation orders pertaining to the excavation in rock. Besides that, late in giving architectural detail drawing to will contribute to the client in delaying confirming the architecture items to be used, especially the materials which is supplied buy limited manufacturer and required specialist to construct them. Meanwhile, material shortage such as sand, concrete and steel also is part of the delayed causes. This is due to the increasing in the sand prices on January 2005 in which Selangor Government freeze permit for the excavation of sand.
b) The effects of the delayed and abandoned of the construction projects.
· Both contractor and client suffer loss due to extra cost
· Contractor also is imposed LAD by the client
· Contractor cannot get back his bond (performance bond, PB)
· Client cannot get use the building on time
· The prolongation of the contract period.
Both Client and Contractor suffer loss due to extra cost. The extra cost such as the loss and expenses occurred in consequence of the delayed or abandoned. The contractor also will be imposed LAD by the client as failed to complete within the EOT given without any valid reason. Client cannot get use the building on time. Contractor cannot get back his bond (performance bond, PB).
c) The solution of the delayed and abandoned of the construction projects.
· Re-tendered after the termination of the contractor within 120 days
· Imposed LAD to the terminated contractor
· By granted EOT to the contractor
· Retain the terminated contractor's bond (PB)
Every Government projects that are declared as abandoned projects will be re-tendered again after the termination of the contractor within 120 days. The Government will imposed LAD to the terminated contractor as to recover loss and expenses suffered by the client. The EOT also is very useful solution; by granted EOT to the contractor in the situation where the Client caused the delayed as the chance for the contractor to complete the projects. In the abandoned cases, typically, Client will retain the bond (PB) of the main contractor as punishment for the contractor that caused abandoned of the project.
6.0 Definition of variables
A characteristic measured for each subject in a sample is called variable. The name refers to the fact that values of the characteristics vary among subject in a sample or population. Variables can be dividing under the categories of independence variables and dependence variables. The independent variable is basically about the respondent profile, while the dependence variable is about the respondent awareness regarding the topic. Variables can also be divided into three; qualitative, quantitative and ordering.
For this research on the delay and abandon projects, researcher intend to use qualitative and ordering. In the qualitative variables - in nominal scale, the researcher try to find out about the post of the individual involved. Meanwhile, in quantitative variables – in ordinal scale, the researcher also observe and analyze about the respondent responses regarding the topic – factors, effects and solution of the delay and abandon projects.
Thus, for this research proposal, the variables that the researcher tend to use are:
Dependent variable (DV) = 1. Factors caused to the delay and abandon projects.
2. Effects of the delayed and abandoned projects.
3. Solution to decrease the delay and abandon projects.
2. Financial constraint
3. Poor management
4. Parties involved in the project
5. Problem in providing the interim payment
6. Poor in conducting soil investigation
7. Variation orders – design changes
8. Late in giving architectural detail drawing
9. The client delay in confirming the architecture items
10. Materials based on market condition
7.0 Unit of analysis
Statistical methods provide a way to deal with variability. Variation occurs among people in the construction, the variety of project itself and various subjects in the construction world. The important variable that have to study are by sampling data, which dependent variables are the focus of the study. The variables which are important regarding to the topic are factors, effects and solution of the delay and abandon projects. These entire variables are the main focus of the study. The results on the topic will depend on the survey that has to be done from the respondent or particularly the construction teams.
8.0 Sampling and sampling level
Descriptive statistical methods provide ways of summarizing the data. Inferential statistical method use sample data to make predictions about population. Thus, we must make a decision which subject of the population to become our sample. Selecting a sample that is to be the representative of the total population is an essential element that must take into concern. Therefore, the target of the population is for the people who involved with the construction world.
Most survey research will involve sampling of some kind. Sampling is a process of selecting participants for a research purpose. It is by obtaining sample of the survey population. It means that the sample is a subset of the population selected for the research study. The sample should be smaller than population size selected for the inclusion in the research. The principle objective or purposes in sampling is to obtain a representative selection of the sampling units within the population.
For the purpose of study the sampling method will be the people in the construction industry. It would be a simple random sample which may control the amount of sampling error. The sampling method is 1/10 of the professional teams in the construction industry or in other words, every 10 professionals, 1 will be interviewed based on the research study.
9.0 Scaling and measurement
The key variable used in the study has to be scaled and measured. This is essential when involved concepts or some variables which are abstract in nature. Operationalization has to be right. The dependence variables are about the respondent awareness and opinion towards the topic which are the factors, effects and solution of the delayed and abandoned projects.
10.0 Method of data collection
Methods of data collection are one of the vital parts in a research study process. Every variables need to be collected through a proper method based on their availability and suitability. Each variable has its own specific methodology. For this research proposal I proposed to use as below:
a) Interview with representative either from JKR, DBKL, contractor and consultant from any project.
b) Case study on the delayed and abandoned projects.
c) Sources from book, journal for additional support of our finding analysis.
d) Internal sources to review the relevant current information on the focus study.
However interviewing need to be thought out carefully as there are different types of interviews. There are three types of interview such as the following:
i. Structure interview – this interview is associated with the survey style of research where a standard interview schedule is design to answer a series of specific question on a face-to-face basis. This interview will produce quantitative data for analysis.
ii. Semi-structure interview - this interview will have specified questions but will allow more probing to seek clarification and elaboration.
iii. Unstructured interview – this interview is associated with ethnographic research where the aim is to understand the perspective of the interviewee attaches to situations and contexts important to her or him.
Besides, interviewing, the technique to collect the data is observation, which based on the objectives and what to study in this research. Observation was made in order to identify the site condition, management of the construction processes, communication among the construction teams and etc.
The case study also will be conducted as to come out with the factors, effects and solution of the delayed and abandoned projects. Thoroughly, find Government project which are using similar standard form of contract and study the problem occurred, how the problem can be solved and the impacts to surrounding people or only to the construction team only.
Secondary data can be obtained from the related agencies, newspapers, journals articles and even internet sources. However, secondary data are mostly toward the calculation, definition, concept and ideas. These information are needed for references in defining some terms for backgrounds and definition and review the objectives of some agencies or departments.
EXAMPLE OF QUESTIONS
Why construction projects delayed or failed to complete on time? (1.mostly, 2.few, 3.very few, 4.none) 1 2 3 4
1. Poor project management
2. Financial constraint
3. Materials constraint due to market condition
4. Disputes among the constructions team in the projects
5. Contractor's attitude
6. Problem in providing the interim payment
7. Poor in conducting soil investigation
8. Variation orders – design changes
9. Late in giving architectural detail drawing
10. The client delay in confirming the architecture items
What is your opinion towards the project management in a construction project?
1. A critical aspect to be focus on
2. Very important
4. Not important
5. Not important at all
Materials are influenced by the market condition, so it can cause to the lack suppliers of materials to the construction works, thus it also contribute to the delay of the constructions works.
2. Totally agree
4. Totally disagree
Who always create disputes in the construction works which cause the chaotic of construction works?
3. Professional team (Architect, Engineer, Quantity Surveyor, etc.)
5. Not sure
11.0 Data analysis
After data collection, data will be analyze, which can be manipulated, interpreted and compared. There are varies methods and techniques for summarizing and interpreting data. The process begins by examining numerical descriptive measures, and then conveyed to the graphical representations of data.
In a study, the method of data analysis is important because it determines the output of the study. All the raw data that were gained from the surveys were analyzed through regression, descriptive statistics, descriptive frequencies and comparison. In order to analyze all the data gained from the primary data stage, some computer software were used such as SPSS and Microsoft Excel. As the result, the information produced will be in descriptive, analytical and interpretive in nature.
Besides, the hypothesis test also is very important as to know the relationship between variables. Hypotheses are most effective when they make a clear and forceful statement. The testing of hypothesis is apart in forming theories. Hypothesis can be tested whether parametric test for scale data and non-parametric test for ordinal or nominal data. The example of parametric test is One-way ANOVA, (Contrast or Post Hoc) and non parametric test is
A hypothesis is directional or non-directional will depend on the nature of the hypothesis. A directional hypothesis will be tested using one tailed procedure whereas the non-directional hypothesis will be tested using the two tailed procedures. Example of two commonly known as null and alternative hypotheses which are formulated as below:
H0 : There is no relationship between parties involved and factors contribute to delay and abandon of a project.
Ha : There is a relationship between parties involved and factors contribute to delay and abandon of a project.
The rejection of null hypothesis based on the significance level. The significant level for one tailed is 0.05 which cover 95% confident level. However, if it is non-parametric test, the test is two tailed test so the significance level divided into two, which it will become 0.025.
12.0 Expected finding
From this analysis, the expectation is that the descriptive statistic can give the mean value for the respondent perception because of it is an ordinal data. Through the reading and also the observation, the professional teams, money or financial and the market condition as reflect the materials price and supplies variable usually influence a lot when dealing with construction projects.
Furthermore the factors, effects, and solution of the delayed or abandoned projects are due to the professional teams, market condition which affect the materials, and management of a project.
From the research study, identification of the factors contributes to the delayed and abandoned projects are very essential as it give impacts to various people. Through this research study also enable us to find out the solution of the problem. In order to achieve the successful of the solution that has been taken to decrease the numbers of the delayed and abandoned project, all parties have to be stimulated to concern the needs and priority in the construction processes.
14.0 Research Schedule
This table shows the flow of my research from the first starting from the idea is developed until the conclusion of my research including in collecting procedures of my prior research.
Table 1.0 Research schedule
Reading, consultation with expertise – developed idea and prepare statement of problem, formulate the objectives of research
Developed propose data collecting – through primary and secondary such as case study of any projects but in area Kuala Lumpur or Selangor only, interviewing session with professionals in construction.
Suggestion on the Data analysis & expected Finding that I planned to be.
Conclusion based on the research proposal.