Ranking of human factors affecting contractors’ risk attitudes in the Malaysian construction industry (original) (raw)
Related papers
The Malaysian construction industry often acts as a vehicle that motivates' the development of the nation's economy. The industry is commonly referred to as a catalyst for development. However, poor performance in terms of productivity and quality systems has been the main issues of discussion from most of the government reports. In order to improve performance in the Malaysian construction industry, the introduction of the Occupational Safety and Health Act (OSHA) in 1994 has made all industries in Malaysia to identify hazards, conduct risk assessment and control those risk and at the same time implement an integrated system to ensure consistency and better performance of projects in Malaysian industries. Therefore, in this paper, the ranking of specific factors affecting contractors' risk attitudes in the Malaysian construction industry was assessed. A review of relevant literature was undertaken to identify the factors influencing contractors' risk attitudes. The study found that the four leading specific factors influencing contractors risk attitude in the Malaysian construction industry are; Project Related Factors, Working capital, Human-Related Factors, and External Environment. The study confirms the individual factors that affect the contractor's risk attitudes. Knowledge of these factors will facilitate contractors' decision-making process and serve as a useful reference for further studies in the field of construction project management.
Factor's Influencing Contractors Risk Attitude in the Malaysian Construction Industry
Journal of Construction Business and Management, 2019
The Malaysian construction industry often acts as a vehicle that motivates' the development of the nation's economy. The industry is commonly referred to as a catalyst for development. However, poor performance in terms of productivity and quality systems has been the main issues of discussion from most of the government reports. In order to improve performance in the Malaysian construction industry, the introduction of the Occupational Safety and Health Act (OSHA) in 1994 has made all industries in Malaysia to identify hazards, conduct risk assessment and control those risk and at the same time implement an integrated system to ensure consistency and better performance of projects in Malaysian industries. Therefore, in this paper, the ranking of specific factors affecting contractors' risk attitudes in the Malaysian construction industry was assessed. A review of relevant literature was undertaken to identify the factors influencing contractors' risk attitudes. The study found that the four leading specific factors influencing contractors risk attitude in the Malaysian construction industry are; Project Related Factors, Working capital, Human-Related Factors, and External Environment. The study confirms the individual factors that affect the contractor's risk attitudes. Knowledge of these factors will facilitate contractors' decision-making process and serve as a useful reference for further studies in the field of construction project management.
Factors Affecting Contractor’s Risk Attitude from Malaysia Construction Industry Perspective
Social Science and Humanities Journal, 2019
Abstract: - Risks always lead to the failure of the contractor to complete projects on time. This situation is caused by many factors. The contractor’s failure to plan, manipulate, perform, monitor, control and take into account all factors and risks involved may not guarantee the success of a project. In order to improve performance in Malaysia construction industry, the introduction of OSH Act 1994 have made all industry in Malaysia to identifying hazards, conducting a risk assessment and controlling those risk and at the same time implementing an integrated system to ensure consistency and better performance of projects in Malaysia industry. A total number of ninety-five (95) risk factors that are dampening and affecting contractor productivity in Malaysia construction industry were revealed by the ranking of the contractor risk attitude factors through SPSS. In the same vein, the risk factors were further classified into six (6) subclasses depending on their nature and likelihood of occurrence. Such as (Technical risk, Logistical risk, Management risk, Social-political risk, financial risk, and Environmental risk). In order to achieve the proper response rate for this study, in total 250 questionnaires were distributed to the construction industry in Kuantan Malaysia randomly. Of the 250 questionnaires distributed, 234 questionnaires were received with an equal percentage of 93.6%. Conversely, 7 questionnaires were found to be unusable due to missing data or provided the same responses to all the questions. Thus overall, 90.8% of the total questionnaires were usable concluding with an effective sample of 227. Statistical Package for Social Science (SPSS) version 21.0 for MS Window was used to analyse the collected data. The demographic profile of the companies and respondents were analysed with descriptive statistics. This study also focused on the G7 contractors operating in Malaysia construction industry that specialise in building, bridge and road construction project.
Where Are We? The Level of Risk Management in Malaysian Construction Industries
International Journal of Supply Chain Management, 2020
Over the decade, the level of risk management has always been lingering in every construction industry sectors. Therefore, this research deeply investigated the level of risk management among Kuantan Malaysian construction industries to better promote effectiveness on risk management implementation within the industry. To address this issues, this study makes use of statistical package for the social sciences (SPSS) approach to validate construction risk management (CRM) as a construct from registered Grade-7 contractors operating in Malaysia point of view. With a cross-sectional survey and proportionate stratified random sampling techniques, data were gathered from 87 G-7 contractors through a structured questionnaire. Methodologically, this research perhaps might be the first to determine the level of risk management where Kuantan Malaysian construction industries belong to. Using the fivepoint Likert scale categories (very low, low, medium, high and very high) of risk management ...
This study investigated the individual factors affecting contractors' risk attitudes and further determined its relationship with government policy. The theory of planned behaviour was used to develop the theoretical framework that investigated G-7 contractors operating in Malaysian construction industry. A review of relevant literature and questionnaire was adopted in order to identify the factors affecting contractors' risk attitudes (individual factors). A total of 119 personal structured questionnaires were considered for the analysis with the response rate of 94%. In addition, a structural equation modelling approach was employed to examine the direct and the moderating relationship as drawn by the hypotheses. In addition, with quantitative research design following positivist research paradigm, the methodology was designed to focus on the research questions and the objectives. The questionnaire was designed by using closed interval measurement scale with proper care taken in designing the survey instruments. SPSS 20.0 and SmartPLS 3 for structural equation modelling were utilized in confirming the hypotheses developed for the study. The results of this study through structural equation modelling opined that government policy and individual factor have a positive and significant influence on contractor's risk attitudes.
International Journal of Structural and Civil Engineering Research, 2015
Risk and uncertainty have continuously troubled the construction industry compared to other industries due to its complexity, magnitude and time consuming characteristic. As the process of risk management involves predicting the unpredictable, it can be expressed as the most vital management tool to cope with project uncertainties. Risk management can be treated as an essential element for creating value to a project and improving project performance in terms of cost, time and quality. However, systematic risk management is not implemented in most of construction companies in Malaysia. Consequently, this situation can ultimately lead to project failure in terms of cost overruns, schedule delays and poor quality performances. Therefore, this research aims to investigate the current practice of risk management in the Malaysian construction industry and attempts to assess the process and various tools/techniques currently used and applied to handle the projects. The data have been obtained through a series of semi-structures interviews from industrial practitioners. Findings conclude that the level of risk management practices in Malaysian construction companies are relatively low and lacks in knowledge on the subject. In addition, only simple tools and techniques are used to identify, analyze, respond, and monitor the risks. Furthermore, the frequency of use of these tools is also found to be very low. Possible cooperation between the academia and industry might improve risk management practice in the Malaysia construction industry.
INTERNATIONAL JOURNAL OF CONSTRUCTION SUPPLY CHAIN MANAGEMENT, 2020
One of the critical factors responsible for the successful management of construction projects is individual factors. These factors play a significant role in the decision-makers' attitudes towards risks management. Many previous studies regarding the management of construction projects have focused on the factors contributing to the success of risk management. However, little attention has been given to factors severely affecting the decision-makers' risk attitudes with particular reference to an individual's risk factors in the construction industry. Therefore, this study aims to identify the factors affecting contractors' risk attitudes and then determine its relationship with government policy. Theories of planned behaviour and organisational control were used to develop the theoretical framework that investigated G-7 contractors in the Kuantan Pahang, Malaysian construction industry. A review of relevant literature and questionnaire was employed to identify the factors affecting contractors' risk attitudes (personal factors). 112 copies of a structured questionnaire were analysed with a response rate of 80%. Structural Equation Modelling SEM was utilised to test the hypotheses developed for the study. The results of this study, through SEM, proved that personal factors (working experience, professional competence and physical health) have a significant influence on contractor risk attitudes in the Malaysian construction industry. The findings of this research also confirm that government policy (rules and regulations) plays a moderating role in enhancing the relationship of personal factors affecting contractors' risk attitudes in construction companies in Malaysia. The findings of the study provide more understanding of the personal factors that affect contractors' risk attitudes to facilitate contractors' decision-making process and serve as a useful reference for further studies in the field of construction project management.
Individual factors influencing contractors risk attitudes in Malaysia
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT, 2019
This study investigated the individual factors affecting contractors’ risk attitudes and further determined its relationship with government policy. The theory of planned behaviour was used to develop the theoretical framework that investigated G-7 contractors operating in Malaysian construction industry. A review of relevant literature and questionnaire was adopted in order to identify the factors affecting contractors’ risk attitudes (individual factors). A total of 119 personal structured questionnaires were considered for the analysis with the response rate of 94%. In addition, a structural equation modelling approach was employed to examine the direct and the moderating relationship as drawn by the hypotheses. In addition, with quantitative research design following positivist research paradigm, the methodology was designed to focus on the research questions and the objectives. The questionnaire was designed by using closed interval measurement scale with proper care taken in designing the survey instruments. SPSS 20.0 and SmartPLS 3 for structural equation modelling were utilized in confirming the hypotheses developed for the study. The results of this study through structural equation modelling opined that government policy and individual factor have a positive and significant influence on contractor’s risk attitudes.
Implementation of Risk Management in Malaysian Construction Industry: Case Studies
Journal of Construction Engineering, 2015
Construction industries are exposed to wide array of risks, such as financial, design, and contractual ones, which might have a direct impact on their performance toward achieving the desired objectives. Risk Management is a proactive decision-making process used to minimize and manage the risks in the most efficient and appropriate manner. However, most construction firms in Malaysia do not apply formal risk management in their projects. Thus, this study aims to identify the actual process of risk management that is being applied in the construction projects and to determine the effects of risk management implementation on the performance of the construction projects in terms of time and cost. The data were obtained from four case studies in Kuala Lumpur, Malaysia, through semistructured interviews. It was found that the implementation of risk management process in Malaysian construction industry is still at a low level, mainly due to the fact that most of the construction employee...