construction cost
Malaysian Technical Universities International Conference on Engineering & Technology (MUiCET 2011)
Identifying Construction Resource Factors
Affecting Construction Cost: Case of Johor
Aftab Hameed Memon*, Ismail Abdul Rahman, Ade Asmi Abdul Aziz, Kumarason V. Ravish, and
Noor Ikmalah Mohammad Hanas
Faculty of Civil and Environmental Engineering,
Universiti Tun Hussein Onn Malaysia, 86400 Parit Raja, Batu Pahat, Johor, Malaysia
*Corresponding e-mail: aftabm78@hotmail.com
Abstract
The success of any construction project highly depends on proper and effective management of construction resources flow. Studies show various resources factors that affect the cost management resulting in significant amount of cost overrun. This study focuses on the significant resource factors causing construction cost overrun in the state of Johor. Data collection was carried out through a structured questionnaire survey consisting of 16 factors identified through a comprehensive literature review. Data was analyzed with statistical software package
SPSS. It was found that average cost overrun for this study is in the range of 10% to 15% of the project cost. The
Cronbach 's alpha of the data was 0.910 which means that the data collected was highly reliable. The factors were ranked through mean rank calculation and it was found that fluctuation of prices of materials, cash flow and financial difficulties faced by contractors and shortages of materials were the significant factors affecting construction cost overrun. Insufficient numbers of equipment, relationship between management and labour, and labour absenteeism were found as factors of least significance causing cost overrun. The result of Spearman test indicates that cash flow and financial difficulties faced by contractors, and financial difficulties of owner correlates with each other at a significant value of 0.752. Furthermore, equipment availability and failure, and insufficient numbers of equipment
Identifying Construction Resource Factors
Affecting Construction Cost: Case of Johor
Aftab Hameed Memon*, Ismail Abdul Rahman, Ade Asmi Abdul Aziz, Kumarason V. Ravish, and
Noor Ikmalah Mohammad Hanas
Faculty of Civil and Environmental Engineering,
Universiti Tun Hussein Onn Malaysia, 86400 Parit Raja, Batu Pahat, Johor, Malaysia
*Corresponding e-mail: aftabm78@hotmail.com
Abstract
The success of any construction project highly depends on proper and effective management of construction resources flow. Studies show various resources factors that affect the cost management resulting in significant amount of cost overrun. This study focuses on the significant resource factors causing construction cost overrun in the state of Johor. Data collection was carried out through a structured questionnaire survey consisting of 16 factors identified through a comprehensive literature review. Data was analyzed with statistical software package
SPSS. It was found that average cost overrun for this study is in the range of 10% to 15% of the project cost. The
Cronbach 's alpha of the data was 0.910 which means that the data collected was highly reliable. The factors were ranked through mean rank calculation and it was found that fluctuation of prices of materials, cash flow and financial difficulties faced by contractors and shortages of materials were the significant factors affecting construction cost overrun. Insufficient numbers of equipment, relationship between management and labour, and labour absenteeism were found as factors of least significance causing cost overrun. The result of Spearman test indicates that cash flow and financial difficulties faced by contractors, and financial difficulties of owner correlates with each other at a significant value of 0.752. Furthermore, equipment availability and failure, and insufficient numbers of equipment
References: Morgantown, 1994. Malaysian Technical Universities International Conference on Engineering & Technology (MUiCET 2011) [3] S Engineering, Vol. 12 (6), 2008: pp. 367-377. Management, 2nd edn., Oxford: ButterworthHeinemann, 1993. Construction, Zagreb, 2008: pp. 1-7.