The Cost Reduction Technique In Construction Construction Essay

Chapter 1


Many building undertakings in Malaysia have experienced hold in building. Failure to finish a undertaking either by the original planned clip or budget, or both, finally consequences in project hold. The clip and cost for public presentation of a undertaking are normally the kernel of employer and the contractor. This is because late completion of undertakings can deny employers the benefits or net incomes of the undertaking and may besides expose them to serious fiscal and economic hazards such as high involvement rates and loss of market chances. On the contractor ‘s side, hold in completion entails extra cost such as drawn-out place office and site office operating expenses, labor and equipment standby costs and so on. This may consequences in cost overproduction. Therefore, it is of import to foretell and place jobs in the early phases of building and name the chief causes and implement the most appropriate and economical solutions to forestall farther negative impacts of hold and cost overproduction. The cost decrease technique is one of the methods that can be implemented in building industries presents.


In building, hold could be defined as the clip overrun either beyond completion day of the month specified in a contract, or beyond the day of the month that the parties agreed upon for bringing of a undertaking. It is a undertaking stealing over its planned agenda and is considered as common job in building undertakings. To the proprietor, hold means loss of gross through deficiency of production installations and rent-able infinite or a dependance on present installations. In some instances, to the contractor, hold means higher operating expense costs because of longer work period, higher stuff costs through rising prices and due to labour cost additions.

The job of old holds in the old building industry is a planetary phenomenon and the old building industry in Malaysia is no exclusion. Completing undertakings on clip is an index of efficiency, but the building procedure is capable to many variables and unpredictable factors, which result from many beginnings. These beginnings include the public presentation of parties, resources handiness, environmental conditions, engagement of other parties, and contractual dealingss. However, it is seldom happen that a undertaking is completed within the specified clip.

Due to a batch of job about hold and cost overproduction in building industry it will impact the entire cost for the building. So that the cost decrease technique can be apply into the building industry. Certain hold causes by stuff or whatever is it so it can be cut down it. This will diminish the entire cost of the building.


The building industry in Malaysia is the most of import sector that gives income to our state. Nowadays, many undertakings are be givening to detain and be overproductions while making the undertaking. This is because of many factors come from different parties such as contractor, client, designer and other. For case increasing in monetary value stuff, a batch of fluctuations order and so on. This will impact the cost of the undertaking. Therefore some technique must be applied to cut down the cost. This paper purpose is to happen out the best phase to utilizing cost decrease technique in building industry in Malaysia.


The aims of this paper are as follows:

To place the phase that can be use the cost decrease technique in building.

To place the types of cost decrease technique that can be apply at every phase in building industry.

To place the advantages and disadvantages of utilizing the cost decrease technique in building industry.


How many phases have in building?

What is the cost decrease?

What are the cost decrease techniques in building?

What are the types of cost decrease?

Why we need cost decrease technique in building?

How cost decrease technique will impact the building industry?

What are the advantages and disadvantages of the cost decrease?

What are the barriers to the cost decrease in development of building industry?


The range of this paper involves the research about the two phases in building merely which is tendering phase and executing phase. This paper besides is merely concentrating on the cost decrease technique in local and international building.


Several research methods are chosen to obtain informations and accomplish the aims outlined. This enforced method is divided into 4 phases as a guideline in roll uping the related information.

1.6.1 Literature Review

The literature reappraisal are conducted to obtain information from secondary beginnings such as books reading, conference documents, newspapers, encyclopaedia, instance jurisprudence, standard contract signifiers, journal articles and booklet. Web sites are used to obtain information in acquiring primary beginnings. The literature reappraisals are conducted in this research because this method helped to research the constructs of the research subjects and garner the appropriate and current information needed. Problems and inquiries that arised will be listed after the research is conducted and will be resolved through other follow-ups methods.

1.6.2 Questionnaire

Questionnaires are conducted to obtain information on primary beginnings. Questionnaire signifiers are distributed to assorted respondents in acquiring written feedbacks to accomplish the aims of this research. The printed questionnaire signifiers will be distributed to the respondents in all over the state. Information from the questionnaire that is collected back is so being analyzed.

1.6.3 Interviews

Interviews are carried out on the contractors and representatives from several building companies. From the interviews, accounts, sentiments, positions and existent experiences can be obtained from the respondents. The interviews are conducted to find the appropriate techniques that can be used to cut down the cost in building undertakings.

1.6.4 Data Analysis

The information obtained from interviews and questionnaire signifiers will be analyzed so that they can be combined into simpler signifiers. The information collected will be analyzed utilizing statistical methods. The information will be displayed and presented in tabular arraies, charts and description.


Delay and cost overproduction job is the thorny inquiry in building industry non merely in Malaysia but besides all over the universe. The cause of hold and cost overproduction in building phase arises from infinite factors. The job can non be solved exhaustively, if these factors are non identified and restricted or eliminated. However, the limitation of clip and finance does n’t let undertaking director to work out all influencing factors, so it is necessary to place the critical factors.

This survey developed the model which is really practical to happen out the phase that ever doing the serious hold and cost overproduction jobs in building edifice phase. The impact degree of these factors on building continuance can be different from this undertaking to another undertaking, but the method to measure them is similar. So this attack can be applied to about building edifice.

Chapter REVIEW

1.8.1 Chapter 1 – Introduction

The first chapter describes the debut of the research. The treatments are related to the issues and the facts of the research jobs. This chapter besides describes the ends, research aims, research inquiries, range, methodological analysis, the importance of the research and sum-up of the thesis work.

1.8.2 Chapter 2 – Literature Reappraisal

The 2nd chapter focuses on the hold and cost overproductions. Among that are the significance of the hold and cost overproduction in the building industries. In add-on, it besides states the grounds for the hold and cost overproduction and the effects on the building industries. The range of this chapter describes the specific treatments of the research needs.

1.8.3 Chapter 3 – Literature Reappraisal

The 3rd chapter focuses on the theories and constructs related to the phases in the building industries. This chapter will depict several techniques that can be used to do decrease of the cost. It will be describe in phases harmonizing to the stated phases categorization. The range of this chapter describes the specific treatment of the research including the advantages of utilizing the cost decrease techniques.

1.8.4 Chapter 4 – Methodology

Chapter four is the methodological analysis phase that is the informations aggregation methods. It covers the design of the questionnaires, interviews and observation methods that are described in this chapter. This chapter besides includes method of interviews, direction when the questionnaires were carried out and methodological analysis for puting the sample size of the respondents. Justification for the pick of location of the survey country is besides described in this chapter. Flow chart for the methodological analysis of the survey is besides included here.

1.8.5 Chapter 5 – Analysis of Datas

Chapter five is the most of import portion in this research. It explain phases of roll uping information, analysing and findings from the information. An account of the survey can be proved and are used to find whether the ends and aims are achieved. The research can be proved with the assistance of observations conducted while making the survey. For cases, the exposures taken while the research is carried out can assist the readers a batch in explicating the research itself. The information processing is carried out with the assistance of the computing machines. The information will be analyzed to acquire the findings of the research.

1.8.6 Chapter 6 – Decision and Recommendation

The last chapter discusses the findings of the research. It covers the jobs and potencies faced during the research. The preparation of the findings is derived from the information analysis, recommendations and decisions.