The building industry is a alone sector that possesses an individuality feature which is varied from the other sectors. The cyclical and seasonal instability of the industry makes this sector full with challenges. The instability of the industry such as fluctuation of the stuff monetary values, instability of the market status every bit good as building hold has left a immense impact to the industry participants, peculiarly to the cardinal forces in the undertaking such as the client and the contractor.

Acerate leaf to state, the fiscal involves in wining a undertaking is immense, particularly when the undertaking involves is really complex, e.g. the MRT undertaking. Therefore, it seems to propose that the industry could n’t afford to hold excessively much of errors such as building hold, which finally affected the undertaking ‘s completion and worst still infest the client ‘s budget.

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On the other manus, others industries such as the maker sector are rather different compared to the building industry. The quality of the merchandise can be assured under a rigorous supervising and controlled in the mill. Unlike the building industry, the contractors may non be able to warrants on the quality of the merchandise e.g. edifice with nothing defects. In add-on, this sector does non impact much by the utmost clime. Therefore, it is improbable the fabrication sector frequently facing holds due to the utmost conditions. Consequently, the targeted completion day of the months to bring forth the merchandises is ever guaranteed. However, hold ever occurs in the building industry. The utmost clime has left a immense impact, particularly on the undertaking completion in the building industry ( O’Brien, J.J. , 1976 ) .

Construction hold is one of the issues challenges the industry these yearss. The impact of the building hold may be comparatively immense toward the parties, e.g. the employer and the contractor. Therefore, it is of import to find the causes of hold hence place the appropriate solution to extenuate the building hold. Unfortunately, the phenomena of go throughing the liability from one party to another frequently occurred. Problem may happen if the difference due to detain does non decide carefully, worst still such difference will be sent for arbitration or even judicial proceeding.

Problem Statement

Acerate leaf to state, in any building undertaking, the undertaking beginning day of the month every bit good as the completion day of the month is clearly specified in the contract status. Once the contractual parties e.g. the employer and the contractor have signed the contract, so such understanding will be enforced under the jurisprudence. Harmonizing to PAM 2006, it is the contractor ‘s duty to finish the work on or before the day of the month of completion. Therefore, if the contractor failed to follow with such status, so the employer has the right to action against the contractor on the breach of contract. However, building hold is still happened although the issue has gained the consciousness of the contractual parties, e.g. the employer and the contractor on the earnestness of the impact of hold toward them. In add-on, during the event of hold, who is the one shall liable for building hold is remained diffident. This is because building hold may neither do by the contractor, employer nor others external factor such as force majeure. In order to extenuate the building hold, it is critical importance to understand the root of hold. Therefore, this research is carry out to find the major causes of building hold hence figure out appropriated method in minimising the building hold.

Aim and Aims

The purpose of this research is to look into the major causes and impact of building hold in Malayan Construction Industry in regard to building undertaking in Klang Valley. Therefore, the aims of the survey are comprises of:

To place the major causes of building hold.

To find the major effects of building hold.

To give out recommendation on how to extenuate the building hold.

Background of Research

Construction industry is one of the larger sectors and besides the key driving forces of the Malayan economic. Harmonizing to the economic study 2011/2012, building industry is expected to growing in a stronger gait of GDP 7 % in the twelvemonth 2012 ( Joseph, 2011 ) . The positive growing of the Malayan economic is believed influenced by the execution of Malayan Plan, particularly on the bringing of the substructure undertaking by the authorities. Whereby, one of the hottest subjects and the typical illustration of the substructure undertaking that has been carried out these yearss are the MRT undertaking.

Acerate leaf to state, the bringing of MRT undertaking has created a concern ‘s environment with a clump of concern chances. Therefore, it seems to propose that the bringing procedure for MRT undertaking holding a immense influence over the other sectors. However, during the building period, there are many factors deem to be consider particularly when the building site was located in a busy metropolis such as Bukit Bintang, KL. The traffic congestion is one of the of import issues required careful consideration as the undertaking is being delivered. Therefore, if any critical hold occurred in this MRT undertaking, how immense will be the impacts to the populace either in footings of pecuniary or public ‘s convenient has still remained a good inquiry.

The building undertaking can be categorized into three ( 3 ) chief classs:

Building Construction

Construction undertaking related either residential edifice or commercial edifice. For case, school, store batch, cottage, semi-detached houses, condominium, etc.

Heavy Construction Other Than Building

The undertakings are affecting of Civil Engineering plants such as main road, tunnel, span, dike, sewer line, etc.

Construction in Regard Specialty Trade

Particular trade contractor is engaged chiefly for the specific activities. For illustration, electrical work, levelling, land glade, acoustic installing, etc.

( Wisconsin Workplace Safety Institute, 2012 )

However, building hold is non limit to constructing building. It can go on in any building undertaking, for case hold occurred in the substructure undertaking such as main road building. One of the landmark instance of hold occurred in substructure undertaking is the West Cost Expressway ( WCE ) . WCE is the main road connected to the North-South Expressway, start from the Taiping in the North and connecting to Banting in the South and taking to the Kuala Lumpur International Airport ( KLIA ) . This undertaking has been delayed over 10 ( 10 ) old ages due to the funding jobs in funding the undertaking ( Lim, 2012 ) . The Foreign Investment Committee ( FIC ) set up by the authorities has encouraged the aliens to put in our state. The phenomenon of building hold is believed has created a negative impression to the foreign investor toward the grade of stableness of economic sciences of the state. As a consequence, it might cut down the involvement of foreign investors to put in our state.

In add-on, it was non surprising that private undertakings have encountered holds. Harmonizing to the Ministry of Housing and Local Government, the latest study which has updated until 31 March 2012 shown that the Numberss of private undertakings have encountered holds is about 54 ( 54 ) Numberss of undertakings all over the Malaysia. The perceptual experiences of the public toward private undertakings frequently link with the pecuniary factor. They believed that, the precedence factor to be considered in wining a private building undertaking is the handiness of the money. In fact, the factors that induce holds are non limited to pecuniary factor. Sometime, it can do by the contractor ‘s negligenceA or evenA other external factors, e.g. several conditions. Furthermore, the building hold has induced extra cost and clip required to finish the undertakings. The employer e.g. developer may meet critical cost overproduction and worst still abandon the undertaking.

The relationship between extension of clip ( EoT ) , loss and disbursal and liquidated amendss will ne’er get away to associate with the hold occur in the undertakings. Harmonizing to PAM 2006, the contractor has the right to allow for EoT, if the work has or will be delayed beyond the completion day of the month as a province in the contract.A Provided that, such hold is non caused by the contractor ‘s default.A A For illustration, the employer holds in giving site ownership to the contractor due to the hold in having blessing from the local authorization. Such hold can be few months or worst even up to a twelvemonth. As what we know, clip is money. This is really sensitive, particularly in the building industry because it may do the parties, e.g. developer and contractor suffers immense loss due to the delay.A

In patterns, if the hold cause by the employer himself, the contractor is entitled grant for the extension of clip every bit good as the loss and disbursal. As a consequence, the employer is required to pay more than the initial contract amount. However, there is the hazard that the employer may over their budget hence confronting fiscal trouble to fund the undertakings.

On the other manus, liquidated amendss will be imposed by the employer, if the contractor failed to finish the work on or before the day of the month of completion as stated in the contract. Time at big by the contractor has indicated that the contractor no longer bound by the contract proviso to finish the plants by a certain day of the month or extended day of the month ( Oon, 2003 ) . In short, the contractor has breached the contract. As harmonizing to PAM 2006, it allowed the employer to claim his losingss and such losingss is named as liquidated amendss. A liquated harm is a echt pre-estimate of the loss and harm which the employer is suffered in the event contractor failed to finish the work on clip ( PAM, 2006 ) . Therefore, it can be concluded that the entitlement of extensions of clip, loss and disbursal and liquidated amendss by the contractor or employer is ever linked with the building hold that either cause by contractor, employer or some other factors.

Construction hold has left a really immense impact, peculiarly toward the stakeholders.A A balanced relationship between clip, cost and quality ever go the slogan for the employer in wining a undertaking. Unfortunately, the extension of clip induced by building hold has increased the cost required to be bear by the employer or contractor and affected the quality of plants that ensuing by the compression of clip allowableA to finish such hold plants by the contractor. Therefore, it is critical of import to calculate out the roots of hold, understand the impacts therefore identify the manner to extenuate the hold. In add-on, this research are non entirely concentrating on the contractual parties e.g. employer and contractor who contributes to building holds but readers are able to understand some other external factor such as economic status which doing a hold. In decision, the building hold

Scope of Study and Limitation

The range of survey is concentrated on the building undertaking in Klang Valley. The building undertakings to be investigate for this research is entirely focused on the edifice building, e.g. high-rise edifices. Besides, the survey is based on the literature reappraisal and the consequence obtains from the study questionnaires. Questionnaire was design based on the reappraisal of literature from secondary resources, e.g. Articles, Journals, etc. on the causes, impacts and extenuation of hold to place the political orientation of the respondents toward the hold. The mark respondents in this research are the contractor, Architect, Quantity Surveyor and developer.

Methodology of Research

Methodology of research can be described as an attack used to transport out the research. Therefore, a systematic planning on the research methodological analysis will smoothen the whole procedure in transporting out the research. It involves of informations aggregation via assorted channels such as instance surveies, study and interview. Based on the information which has been collected, the research worker has to analyse the information hence make the decision and some recommendation. The full flow chart of the research methodological analysis will demo in Figure 1. The gathered informations can be categorized into two ( 2 ) classs as shown below:

Primary Data

Primary informations is the information collected through studies, instance surveies or problem-solving in which the information is obtained first manus ( Dr. S.G. Naoum, 1998 ) . In this research, the research worker will transport out the study questionnaire therefore it becomes the primary informations used in this research.

Secondary Datas

Harmonizing to Dr. S.G. Naoum ( 1998 ) , secondary informations are the informations that obtained from other beginnings. This mean the information collected is non originated from the research workers. The beginnings of secondary can be from books, diary, thesis, newspaper, any authorities Act, etc.

The Procedure of the Research Methodology

In this research, there are few phases that been adopted by the research worker to transport out the whole research. Those phases are as the followers:

Phase 1: Designation of the Research Topic & A ; Field of Study

The research worker has to calculate out some subjects, which are interested for the research worker. The subject can be the latest hot subject or some incident where the research worker has personally experienced. Then the research worker will choose the most appropriate subject where the research worker is eligible to transport out. A A After the subject is identified, the research worker has to organize and finalise the research rubric which is lucifer with the nucleus thought of the research. Furthermore, the purpose and aims of the research will be finalised. The research worker will so continue to fix an debut which is chapter 1 of the research in order to give a brief thought for this research to the readers.

Stage2: Literature Reappraisal

The research worker has to reexamine other ‘s literature, in which information is likely to roll up from secondary beginnings such as articles, books, newspapers, diary, thesis and any other published information related to research subject on building hold.

Phase 3: Methods of Data Collection

Preparation of Survey Questionnaires & A ; Pilot Study

A set of questionnaires is developed which comprising of three ( 3 ) subdivisions:

Section A: Causes of Construction Delay

Section B: Impacts of Construction Delay

Section C: Extenuation of Construction Delay

A pilot survey will transport out to place the failing of the inquiry set in the questionnaires therefore better the quality of the questionnaires. The mark respondents for this initial trial on the questionnaires are including the undertaking supervisor and some other lectors.

Distribution of Survey Questionnaire

The quantitative researches will transport out by the research worker. A entire figure of 60 transcripts of study questionnaires is distributed over the research sample. The samples being selected for this research subject are developer, contractor, adviser QS and Architect. The media used to administer the questionnaires are e-mail and facsimile.

Phase 4: Data Finding & A ; Analysis

The mark reacting period for this research is appropriate two ( 2 ) month. However, the collected informations will get down analysing one time received about 20 % of respond from the respondents. There are some tool is used to analyse the informations such as tabulating, statistic, graph, saloon chart and correlativity analysis by SPSS package.

Phase 5: Decision and Recommendation

The research worker will do an overall decision based on the information that has been collected and analyses prior. In add-on, the research worker will give out some recommendation to better the survey hence become the future counsel.

Designation of the Research Topic & A ; Field of Study

Literature Review

*Secondary informations e.g. articles, books, newspapers, diary, thesis, etc.

Methods of Data Collection

Preparation of Survey Questionnaires & A ; Pilot Study

B. Distribution of Survey Questionnaire

*Research sample: developer, contractor, adviser QS and Architect

Data Finding & A ; Analysis


& A ;


Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Phase 5

Figure 1. : Flow chart of research methodological analysis

1.7 Summaries of Chapter

The followers are the propose content for this research:

Chapter 1: Introduction of Research

Chapter 2: Literature Reappraisal

Chapter 3: Research Methodology

Chapter 4: Data Finding & A ; Analysis

Chapter 5: Decision & A ; Recommendation


Chapter 1: Introduction of Research

Supply an overview of the survey, so that readers will hold a brief thought and understand what is transporting out in this research. It ‘s including the job statement, purpose, aims, research background, range of survey, outline methodological analysis and sum-ups of chapter.

Chapter 2: Literature Reappraisal

In this chapter, it is about reexamining of other people ‘s literature. The beginnings can be obtaining from article, newspaper, diary, thesis and besides books. After browse through those resources, a sum-up of the causes, impact and extenuation of hold will be developed. Therefore, readers can hold an initial thought about theA causes, impact and manner of mitigate of hold.

Chapter 3: Research Methodology

The flow of activities and the method used in order to accomplish the research ‘s purpose and aim is covered under this chapter.A The attack used to roll up informations in literature reappraisal and study questionnaire will be farther explained. In this chapter, readers are able to understand the construction of the questionnaire which has design to entree the perceptual experience of the respondents toward building hold. Besides, tools used in analysing the information will be introduced. A

Chapter 4: Data Finding & A ; Analysis

After the informations have been collected from the respondents, a item analysis is required. The tools which have introduced in Chapter 3 will be used to analyse the information. In this chapter, utilizing of more graphs, chart and tabular array are indispensable to explicate the consequence obtain from the respondents therefore make ease the readers understand and construing the consequence obtained.

Chapter 5: Decision & A ; Recommendation

A decision based on the apprehension and larning result of the survey will be provided. The perceptual experience and the remarks are holding to be included in this subdivision. Furthermore, some recommendation will give to the readers hence become future mention.


A list of mentions which used to win the research will be provided. Therefore, enable the readers to track back and further survey on those relevant beginnings. Besides, the mentions will be provided in conformity to Harvard Referencing System.

1.8 Drumhead

This chapter is overriding importance as it has indicated the overall thought of the research to be carried out. In add-on, the readers are able to understand the nucleus job of the industry e.g. building hold that finally induced this research. Besides, the readers are besides able to hold a brief thought on the research ‘s content every bit good as the attack used to transport out this research.