Financial factors and impacts of project delays in Malaysian construction industry

The construction industry has been determined as one of the main pillars toward a country’s development. Project delays are one of the crucial issues facing the construction industry. Delays give major impacts in terms of on time project delivery, cash flow management, and the required quality. Prev...

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Main Author:	Wan Aide Indera, Wan Adnan
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/7430/1/s816312_01.pdf https://etd.uum.edu.my/7430/2/s816312_02.pdf
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id	my-uum-etd.7430
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mohd Nawi, Mohd Nasrun
topic	HG Finance
spellingShingle	HG Finance Wan Aide Indera, Wan Adnan Financial factors and impacts of project delays in Malaysian construction industry
description	The construction industry has been determined as one of the main pillars toward a country’s development. Project delays are one of the crucial issues facing the construction industry. Delays give major impacts in terms of on time project delivery, cash flow management, and the required quality. Previous studies highlighted general factors of delay that lead to the failure of contractor performance, including non-financial factors, but financial factors are significant issues in the Malaysian construction industry. Therefore, this study investigated the factors and impacts of financial difficulties faced by contractors in the Malaysian construction industry. The study objective was to investigate the causes of financial issues, to analyse the implications of financial issues and its effects, and to identify the available options and strategic methods to resolve these financial issues. Structured interview sessions were conducted using standard structured questions involving seven respondents who were selected based on their experience and competence in running construction projects in Malaysia. The results of the study revealed that the main causes of delay in construction projects included lack of cash flow management, past due payment received from client, and difficulties in obtaining funds from financial institutions. The implications of these financial issues and their effects on delayed projects would lead to total abandonment, delayed for one to three years from expected delivery date to the clients, increased costs of the project, low quality workmanship, incomplete construction projects, bad reputation to the contractors and clients, budget overrun, time overrun, upward review of contract sum, and revised contract prices. The recommendations to improve and overcome financial issues faced included better managing the cash flow, budget, and payment received from clients.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Wan Aide Indera, Wan Adnan
author_facet	Wan Aide Indera, Wan Adnan
author_sort	Wan Aide Indera, Wan Adnan
title	Financial factors and impacts of project delays in Malaysian construction industry
title_short	Financial factors and impacts of project delays in Malaysian construction industry
title_full	Financial factors and impacts of project delays in Malaysian construction industry
title_fullStr	Financial factors and impacts of project delays in Malaysian construction industry
title_full_unstemmed	Financial factors and impacts of project delays in Malaysian construction industry
title_sort	financial factors and impacts of project delays in malaysian construction industry
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2017
url	https://etd.uum.edu.my/7430/1/s816312_01.pdf https://etd.uum.edu.my/7430/2/s816312_02.pdf
_version_	1747828217366970368
spelling	my-uum-etd.74302021-08-18T08:25:42Z Financial factors and impacts of project delays in Malaysian construction industry 2017 Wan Aide Indera, Wan Adnan Mohd Nawi, Mohd Nasrun School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance The construction industry has been determined as one of the main pillars toward a country’s development. Project delays are one of the crucial issues facing the construction industry. Delays give major impacts in terms of on time project delivery, cash flow management, and the required quality. Previous studies highlighted general factors of delay that lead to the failure of contractor performance, including non-financial factors, but financial factors are significant issues in the Malaysian construction industry. Therefore, this study investigated the factors and impacts of financial difficulties faced by contractors in the Malaysian construction industry. The study objective was to investigate the causes of financial issues, to analyse the implications of financial issues and its effects, and to identify the available options and strategic methods to resolve these financial issues. Structured interview sessions were conducted using standard structured questions involving seven respondents who were selected based on their experience and competence in running construction projects in Malaysia. The results of the study revealed that the main causes of delay in construction projects included lack of cash flow management, past due payment received from client, and difficulties in obtaining funds from financial institutions. The implications of these financial issues and their effects on delayed projects would lead to total abandonment, delayed for one to three years from expected delivery date to the clients, increased costs of the project, low quality workmanship, incomplete construction projects, bad reputation to the contractors and clients, budget overrun, time overrun, upward review of contract sum, and revised contract prices. The recommendations to improve and overcome financial issues faced included better managing the cash flow, budget, and payment received from clients. 2017 Thesis https://etd.uum.edu.my/7430/ https://etd.uum.edu.my/7430/1/s816312_01.pdf text eng public https://etd.uum.edu.my/7430/2/s816312_02.pdf text eng public masters masters Universiti Utara Malaysia Ab Halim, M. S. B., Junoh, M. Z. B. M., & Kamil, S. B. (2014). Financial performance and the management issues of Bumiputera construction firms in the Malaysian construction industry. Advances in Environmental Biology, 654-662. 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Financial factors and impacts of project delays in Malaysian construction industry

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