Factors affecting construction cost performance in project management projects: Case of MARA large projects

Aftab Hameed Memon, Ismail Abdul Rahman, Mohd Razaki Abdullah, Ade Asmi Abdu Azis

Abstract


Aim of Study

This study has focused on investigating procurement strategies adopted in MARA large construction projects. It also identified various factor affecting construction cost performance of MARA large construction projects.

Need of Study

Very rarely MARA projects are finished within estimated project cost. For improving cost performance, it is very important to identify the reasons affecting cost performance of MARA projects. Hence, there is a need of study in understanding the reasons and factors affecting project cost performance of construction projects.

Research Approach

The project was carried out through interviews and survey using the questionnaire among the personnel involved in handling MARA large projects. Gathered data was analyzed statistically using SPSS software package.

Research Findings

This study revealed that fluctuation in price of the material, cash flow and financial difficulties faced by contractors, shortage of site workers, lack of communication between parties, incorrect planning and scheduling by contractors are most severe factors while frequent design changes and owner interference are least affecting factors on construction cost performance in MARA large projects.

Limitations

This study was limited to large construction projects administrated by Majlis Amanah Rakyat (MARA) Malaysia.

Importance and Contribution

This study has highlighted various issues causing poor project performance in MARA large projects. Ranking of the factors will enable the MARA engineers for taking appropriate actions in improving the performance of cost in construction projects. 


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