Master Science in Facilities Management
Faculty of Architecture, Planning and Surveying
University technology MARA, Shah Alam, Malaysia
Construction companies generally have a variety of objectives designed to maintain and succeed in their business. They will also do a lot of effort to maximize profits for their companies but with minimum capital. Some companies are concerned about how management including budget management because from there they can manage their company's financial success and further profit. This paper will be discussed about the key factor for a construction company in Malaysia. The purpose of this discussion is to find out the key factors that should be considered in budget management by construction companies throughout Malaysia. Keyword: Construction Company, key budget factor, Malaysia
Budget is very comprehensive; it is a formal plan that estimates the likely revenues and expenses for a company in a particular period. Budget preparation explains the whole process and use the budget more effectively. Budget management is very important especially for construction companies to ensure that projects run smoothly implemented in line with the company's capital. According to Chan and Chan (2004), the construction industry is dynamic in nature and its environment has become more dynamic due to increasing uncertainties in technology, budgets and development process. Besides that, according to Churchill (1997) accentuates the fact that businesses must understand the pressure to grow so that they can plan and prepare for it, choose the right timing for expected major changes in size and control the speed of growth.
2. Key Budget Factor for a Construction company throughout...