Implication of Non-completion Projects in Malaysia

Project delays are known to affect project cost, workers morale, quality of completed works and the industry's reputation. Modern construction techniques and the use of sophisticated ICT tools on their own do no ensure that a project can be delivered on time. The right level of knowledge, experience, methods and management skills are needed to ensure a greater chance for projects to be completed on or before the deadlines. Delay is a serious problem in the construction industry. It is costly for both owner and contractor. The owner loses by missing out on the potential revenues from the use of the project and by increased overhead cost for contract administration and supervision. The contractor also loses due to increased costs in over-head and tied-up capital. His losses may include lost opportunities for new projects because of diminished financial capabilities. In public projects, the public may also be affected by the delay in the utilization of the facilities and by the extended inconveniences such as traffic disturbances. Delay, therefore, is an important issue to the construction industry. Investigation into this problem area is needed in order to better manage delay situations and to mitigate their consequences. Assessing the frequency of delay, the extent to which delay may occur, and the responsibility for delay can provide insights for early planning to control these factors and improve project performance. Every step prescribed under the Housing Development (Control and Licensing) Act 1966 (the Act) is being taken by the Ministry of Housing and Local Government (MHLG) to minimise the number of abandoned housing projects in the country. However, there are unforeseen circumstances…

The above is extracts from Abdul Aziz Hussin & Abdelnaser Omran, 2011. Implication of  Non-completion Projects in Malaysia, Acta Tecnica Corvinensis- Bulletin of Engineering, Tome IV, Hanendora, Romania, pp. 29-38.