scholarly journals LATE PAYMENT ISSUES OF SUBCONTRACTORS IN MALAYSIAN CONSTRUCTION INDUSTRY

2020 ◽  
Vol 18 (11) ◽  
Author(s):  
Roziha Che Haron ◽  
Ahmad Lutfil Arazmi
Keyword(s):  
Construction Industry ◽  
Cash Flow ◽  
Research Methodology ◽  
Questionnaire Survey ◽  
Construction Projects ◽  
Standard Form ◽  
Survey Analysis ◽  
Construction Companies ◽  
Flow Problems ◽  
Research Findings

The practice of efficient and timely payment in construction projects is a major factor that can contribute to the success of a project. Delays in payment to subcontractor(s) by main contractor and client on construction projects in the Malaysian construction industry is considered to be a significant factor of concern. It causes severe cash flow problems to subcontractor(s) and this condition may lead to a devastating impact to the contractual payment chain. Withholding or delaying payment creates financial hardship for the construction companies and its impacts are sometimes so harsh that some companies have to close down their services. The research methodology adopted was the questionnaire survey analysis based on thirty (37) respondents from selected main contractors and sub-contractors in Gombak, Selangor. The data and information were also gathered from interviews analysis. From the research findings, among the factor of late payment from the client is payment withhold by the client. Meanwhile, the factor of late payment from the main contractor is when the term of “pay when paid” is applied. To improve the payment situation, the findings of this study suggest that there must be dedicated enforcing provisions for payment delay in contracts. This is proposed by introducing the standard form of contract clause regarding payment between the main contractor and domestic subcontractor which include levying charges on overdue payments.

scholarly journals Selection Criteria and the Related Sub-Criteria for the Selection of Standard Form of Contract for Construction Projects in Sarawak

2013 ◽  
Vol 4 (2) ◽  
pp. 34-39
Author(s):  
Ting Sim Nee ◽  
Chin Lin Wei
Keyword(s):  
Construction Industry ◽  
Questionnaire Survey ◽  
Construction Projects ◽  
Selection Criteria ◽  
Current Practice ◽  
Standard Form ◽  
Survey Method ◽  
Local Construction ◽  
Selection Of ◽  
Construction Works

Construction contract refers to an agreement which in enforced by law; standard form is printed form of contract to define responsibilities to various parties involved to complete the construction works. Malaysian construction industry relies essentially on a number of standard forms namely the JKR Sarawak Form of Contract, PWD 203A, PAM, IEM and CIDB forms to execute its construction projects. However, with the number of choices available and without a clear selection guide, selection of an appropriate standard form for the particular projects has hinged on the familiarity of the form users with the particular form. This study aims to identify the selection criteria that can be used for standard form selection. The study form looks into the current practice and how decisions are made to select the appropriate standard form. Selection criteria are identified and this research carried out verification works with local construction industry players via questionnaire survey method. Results from questionnaire survey also indicated that standard forms are usually predetermined by the client in tender stage. It is also shown that some of the respondents have limited exposure to certain standard forms of contract. With the selection criteria identified, it is hopeful that a selection guideline can be developed.

scholarly journals Causes of delays in the construction phase of Chinese building projects

2018 ◽  
Vol 25 (11) ◽  
pp. 1534-1551 ◽  
Author(s):  
Ting-Kwei Wang ◽  
David N. Ford ◽  
Heap-Yih Chong ◽  
Wei Zhang
Keyword(s):  
Construction Industry ◽  
Questionnaire Survey ◽  
Construction Projects ◽  
Poor Performance ◽  
Building Construction ◽  
Building Projects ◽  
Content Type ◽  
Research Findings ◽  
Causes Of Delays ◽  
Survey Approach

PurposeDelays during construction are one of the common scenarios in the construction industry. The purpose of this paper is to identify the primary causes of delays in the construction phase of building construction projects in China.Design/methodology/approachQuestionnaire survey approach was adopted across the four typical cities in China, namely, Beijing, Shanghai, Chongqing and Shenzhen. In total, 115 sets of valid responded questionnaires were collected and analyzed.FindingsThe results show that the causes of variations, delays in progress payments, exceptionally low bids and subcontractors’ poor performance and communication issues were the most important causes of delays in China.Originality/valueThis research is the first questionnaire survey on the causes of delays in the construction phase of building construction projects in China. The comparative analysis shows two unique causes of delays in the Chinese construction industry, such as “difficulty in claiming indemnity” and “unreasonable upfront capital demanded by client.” It also reveals different ranked causes of delays as per distinguished political and economic situations in China. The research findings can be referred by construction projects in other countries that are funded or partnered with China.

Reviews of Cases of Construction Disputes in Malaysia and its Relation with Standard Form of Construction Contract

2013 ◽  
Vol 831 ◽  
pp. 191-196 ◽  
Author(s):  
Ting Sim Nee ◽  
Samuel Nadarajan ◽  
Andrew Whyte
Keyword(s):  
Construction Industry ◽  
Questionnaire Survey ◽  
Economic Trend ◽  
Standard Form ◽  
Secondary Data ◽  
Construction Disputes ◽  
Research Findings ◽  
Almost All ◽  
Relationship Of ◽  
The Relationship

In Malaysia itself, the construction industry has well governed the economic trend and providing the pathway towards modernization. Construction industry is a huge process that involves many activities in different phases and participation of various professions. The complexity of this industry has made it closely linked to disputes. There are always possibilities of dispute occurrence even when almost all projects are governed by their respective contracts. This study is initiated to find the relationship of standard forms of contract with construction disputes. The focus of this study will be on the construction disputes litigation cases in Malaysia reported to the Current Law Journal (CLJ) between year 1999-2009. The secondary data for this study is obtained from questionnaire survey distributed throughout Malaysia, which looks into construction dispute cases that were not referred to formal law journals. Research findings identified that all projects are governed by standard forms and even though the parameters causing construction dispute are actually monitored by the standard form itself, disputes are not declining or effectively resolved, and hence, making the standard forms as one of the the major causes of construction disputes.

scholarly journals Delay in payment effects on productivity of small and medium construction companies in Oman: exploration and ranking

2021 ◽  
Author(s):  
Mubarak Al Alawi
Keyword(s):  
Cash Flow ◽  
Questionnaire Survey ◽  
Financial Stability ◽  
Construction Project ◽  
Internal Factors ◽  
Construction Productivity ◽  
Construction Companies ◽  
Productivity Rate ◽  
Delay In Payments ◽  
Productivity Factors

AbstractMaintaining a stable productivity rate in a construction project is a challenge. Many external and internal factors influence it. Delay in payment is one of the factors representing the project cash flow and mirrors the company’s financial stability status. This study explores the delay in payments effects on the construction productivity of the small and medium construction companies in Oman. Also, it ranks the delay in payment among other productivity factors. Sixty-five small and medium construction companies registered in Oman Tender Board participated in the questionnaire survey. The results showed that delay in payment significantly affects the financial stability of the companies. The delay in payment was ranked third out of 21 influencing productivity factors. The results were compared with a previous study that covered large construction companies in Oman. It was found that the rank of delay in payment in the small and medium construction is significantly higher than what was found in large companies.

scholarly journals Examining the implementation of ISO 9001 in Indonesian construction companies

2015 ◽  
Vol 27 (1) ◽  
pp. 94-107 ◽  
Author(s):  
Debby Willar ◽  
Vaughan Coffey ◽  
Bambang Trigunarsyah
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Current Practice ◽  
Iso 9001 ◽  
Quality Management Systems ◽  
Content Type ◽  
Construction Companies ◽  
Main Motive ◽  
Research Findings ◽  
Management Attitude

Purpose – The purpose of this paper is to examine the implementation of quality management systems (QMSs) of Grade 7 (G-7) Indonesian construction companies. This includes the initial motives that have driven the development of QMSs, barriers to effective QMS implementation, the current practice and integration of QMS-ISO 9001 principles and elements, and the performance of contractors implementing such QMSs. Design/methodology/approach – A survey was conducted involving 403 respondents (Quality Management Representatives, Managers, and Project and Site Engineers) from 77 G-7 as well as ISO 9001 certified Indonesian construction companies. Findings – The main motive for G-7 contractors in establishing and implementing ISO 9001 based QMSs are identified as being to effectively and efficiently control project activities. Respondents apparently do not often experience problems related to QMS implementation. However, issues of management attitude and purpose are identified as barriers that may affect effective QMS implementation. The study highlights the ISO 9001 principles and elements that still require to be more critically applied by G-7 contractors in order to fully implement and improve their current QMS effectiveness. The findings also suggest that, although certified, many G-7 contractors have not yet achieved a satisfactory level of performance to be truly competitive in global markets outside Indonesia. Originality/value – To date, only limited research has been conducted into the application of ISO 9001 in the Indonesian construction industry. The research findings reinforced the value of pursuing more effective QMS implementation. They also support current attempts to introduce ISO 9001 QMSs to a much wider base of Indonesian construction companies, particularly small and medium sized contractors and builders.

scholarly journals Application of BIM and 3D Laser Scanning for Quantity Management in Construction Projects

2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
Thu Anh Nguyen ◽  
Phong Thanh Nguyen ◽  
Sy Tien Do
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Laser Scanning ◽  
Essential Role ◽  
Industrial Revolution ◽  
Management Process ◽  
3D Laser Scanning ◽  
Economic Sectors ◽  
Construction Companies

The construction industry has played an essential role in the process of modernization and industrialization and it has also been a major factor in determining the development of the infrastructure for other economic sectors. Construction companies consider the measurement of work progress, which often wastes time and has a low resolution, to be one of the most challenging problems faced by project management. Therefore, this research aimed to propose practical solutions by applying recent technological achievements of the 4.0 industrial revolution to improve the efficiency of the quantity management process. By utilizing the advantages and features of a BIM model and 3D laser scanning, this paper proposes that adopting a BIM model and 3D laser scanning has the potential to improve the accuracy and efficiency of the quantity management process. The case study demonstrated some typical tasks to evaluate accuracy and efficiency as well as to showcase the research proposal.

scholarly journals Identification of Causes and Minimization of Delays in Highway Projects of Pakistan

2019 ◽  
Vol 38 (1) ◽  
pp. 103-112
Author(s):  
Samiullah Sohu ◽  
Abdul Fattah Chandio ◽  
Kaleem ullah
Keyword(s):  
Literature Review ◽  
Construction Industry ◽  
Questionnaire Survey ◽  
Construction Projects ◽  
Structured Interview ◽  
Mitigation Measures ◽  
Structured Interviews ◽  
Highway Projects ◽  
Mean Values ◽  
Causes Of Delays

The problem of delay in construction industry is a regular phenomenon worldwide, and construction industry of Pakistan has no exception, particularly in highways projects. Delay can be described as the extension of time to complete the construction project. The aim of this paper is to identify main causes of delays in highway projects of Pakistan, and to determine mitigating measures for the identified causes. The research method of this study is based on literature review, questionnaire survey and semi structured interview. From in-depth literature review, twenty-six common causes of delay were found. A questionnaire survey was carried out among construction professionals of highway projects. The causes of delay in highways projects were ranked referring to their Mean values. A semi structured interview was carried out to determine mitigation measures for the top ten causes of delays. The data gathered from questionnaire survey was analyzed using SPSS (Statistical Package for the Social Sciences) while, data collected through semi structured interviews was analyzed using Nvivo software. The findings of this study are expected to be useful for construction parties, to mitigate the delays in highway construction projects of Pakistan.

Roles of Contractors in Implementing Quality Assessment System in Construction (QLASSIC) in Construction Projects

2021 ◽  
Vol 15 (S1) ◽  
pp. 53-69
Author(s):  
Mohd Shazreen Seman ◽  
Mohd Reza Esa ◽  
Mohd Reeza Yusof
Keyword(s):  
Quality Assessment ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Technical Committee ◽  
Assessment System ◽  
Construction Companies ◽  
Industry Standard ◽  
The Government ◽  
Questionnaire Surveys

In recent decades, the construction industry has been widely criticized for its lack of efficiency and productivity, and it has been shown that the Malaysian construction industry records poor quality on its projects. To overcome this issue, the Technical Committee on Quality Assessment in Construction with the support of the Construction Industry Development Board (CIDB) has introduced Quality Assessment System in Construction (QLASSIC). QLASSIC is a scoring system that is used to assess and evaluate the performance of construction buildings. It is based on the Construction Industry Standard (CIS 7:2006). Unfortunately, this assessment system had poor implementation since its introduction in November 2006. QLASSIC was not extensively implemented and was taken lightly by the contractors and developers in Malaysia. There are still a huge number of contractors that are not aware of QLASSIC even the big construction companies. Thus, this research is aimed at investigating the contractor’s perspective towards the implementation of QLASSIC in the construction industry in Malaysia. Three objectives are developed to achieve the aim: (1) identification of the needs to implement QLASSIC; (2) investigation of issues and challenges to implement QLASSIC and (3) recommendation of strategies to implement QLASSIC. Structured questionnaire surveys were distributed to the G7 and G6 contractors in the Klang Valley area; which may have or may not have experience in implementing QLASSIC in their projects. The result revealed that majority of the respondents were aware and understand the needs of QLASSIC implementation, but there were still few who were unfamiliar with the QLASSIC. The current level of implementation of QLASSIC in Malaysia is still not satisfactory due to several issues and challenges acting as barriers to its implementation. Therefore, the initiatives from the government are important to promote QLASSIC implementation in the construction industry. By doing this, the contractors would be aware of the implementation of QLASSIC in the construction industry. The significance of this research is that it will assist contractors and other construction players in comprehending the implications and importance of QLASSIC implementation.

A Study on Variations in Sewerage Construction Projects

2012 ◽  
Author(s):  
Mohd Azraai Kassim ◽  
Jen Loong Lee
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Site Conditions ◽  
Project Costs ◽  
Research Findings ◽  
Project Characteristics ◽  
Major Factors ◽  
A Company ◽  
Total Project ◽  
Sewerage Network

Perubahan dalam pembinaan telah lama menjadi isu pertikaian antara pelbagai pihak yang terlibat dalam projek pembinaan. Namun, hanya sejumlah kecil kajian yang rasmi telah dijalankan untuk menganalisis sebab-sebab dan kesan-kesannya. Kajian ini tertumpu kepada analisis kekerapan dan keterukan berbagai-bagai faktor yang mengakibatkan perubahan dalam projek pembinaan rangkaian pembetungan. Adalah penting bagi sesebuah syrikat bukan sahaja mengetahui kos perubahan, tetapi juga mengenal pasti perkara-perkara yang perlu diberi perhatian untuk mengurangkan kos-kos sedemikian dalam projek akan datang. Kesemua data dan maklumat yang diperlukan diperolehi dari fail-fail arkib bagi tiga belas projek yang disahkan melalui temubual. Data-data dikategori untuk menganalisis kekerapan dan keterukan faktor-faktor. Jadual dan carta digunakan untuk menunjukkan hasil-hasil kajian. Daripada hasil analisis, keadaan tapak yang berbeza merupakan faktor utama yang mengakibatkan perubahan. Faktor-faktor ini menyumbangkan 49.3% daripada jumlah bilangan perubahan, 56.2% daripada jumlah kos perubahan dan 3.8% daripada jumlah kos projek. Dua ciri projek, iaitu nilai anugerah kontrak dan gred pendaftaran kontraktor dengan Lembaga Pembangunan Industri Pembinaan (mewakili pengkhususan, kedudukan kewangan dan sumber-sumber lain kontraktor) menunjukkan penyebab yang tertentu dengan perubahan. Kata kunci: perubahan; kekerapan; keterukan; pembetungan; rangkaian; pengkhususan Variations in construction have long been a debatable issue among the different participants involved in construction projects. However, only a few formal studies have been carried out to analyse its couses and effects. This study is focused on the frequency and severity of various factors causing variations in sewerage networks construction projects. It is important for a company not only to know the variation costs, but also to identify the most likely areas on which to focus in order to reduce these costs for the future projects. All the necessary data and information are obtained from archival files of thirteen projects and verified through interviews. These data are categorised to analyse the frequency and severity of factors. Tables and charts are presented to show the research findings. From the analysis, differing site conditions appear to be the major factors contributing to variations. They average 49.3% of the total number of variations, 56.2% of the total variation costs and 3.8% of the total project costs. Two project characteristics i.e. contract award value and the contractor´s registration grade with the Construction Industry Development Board (which represents the contractor´s specialisation, financial and other resources standing) show certain causal relationships with variations. Key words: variation; frequency; severity; sewerage; network; specialisation

scholarly journals The Nature of Payment Problems in the New Zealand Construction Industry

2011 ◽  
Vol 11 (2) ◽  
pp. 22-33 ◽  
Author(s):  
Thanuja Ramachandra ◽  
James Olabode Rotimi
Keyword(s):  
New Zealand ◽  
Construction Industry ◽  
Cash Flow ◽  
General Construction ◽  
Court Cases ◽  
Significant Percentage ◽  
Construction Companies ◽  
Financial Obligations ◽  
Specific Construction ◽  
Property Developers

Delay and loss of payment is a serious problem in the construction industry of many countries. These affect the cash flow of contractors which is critical to meeting their financial obligations. Payment defaults by the principal leads to insolvency of contractors and in turn other parts of the project chain. In recognition of some of these problems, most countries have established payment-specific construction industry legislation and other contractual measures to mitigate the problems, but nevertheless the problem persists. In this context, the paper examines the nature of payment problems in the construction industry in New Zealand. It is part of a larger study, that seeks solutions to payment losses in the construction industry.The study uses two approaches; an analysis of liquidators’ reports, and an analysis of court cases involving payment disputes to determine the magnitude of payment problems on construction parties. The findings are presented using simple descriptive and interpretive analyses. The study finds that trade creditors are impacted negatively (payment delays and losses) by the liquidation of property developers, general construction and construction trade companies. 75% of trade creditors are unable to be paid fully by these categories of construction companies after liquidation proceedings. Liquidation proceedings take an average 18 months before they are finalised. The analysis of court cases found that 80% of payment disputes are between principals and contractors; with considerably significant percentage of disputes resulting in outright loss of payments. Only 40% of the cases are successful, in which case claimants are able to fully recover the amount in dispute. Payment losses are more prevalent in liquidation than delays and unlike in legal disputes, there is no security for those losses. The study finds that construction parties use remedies contained in the security of payment provisions within standard conditions of contract, and legislative documents.

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