Fundamental Variables of Final Account Closing Success in Construction Projects in Malaysia
Project management process starts from the planning stage up to the stage of completion (handover of buildings, preparation of the final accounts and the closing balance). Seeing as this process is not easy to be implemented efficiently and effectively, the issue of unsuccessful delivery as per contract in construction has become a major problem for construction projects. These issues have been blamed mainly on inefficient traditional construction practices that continue to dominate the current industry. This is due to several factors, such as environments of construction technology, sophisticated design and customer demand, that are constantly changing and influencing, either directly or indirectly, to the practice of management. Among the identified influences are physical environment, social environment, information environment, political and moral atmosphere. Therefore, this paper is emerged to determine the fundamental variables in the final account closing success in construction project. This aim can be achieved via its objectives of identifying the key constraints to the closing of final accounts in construction projects in Malaysia, investigating solutions to the identified constraints and analysing the relative levels of impact of the identified constraints. It is expected that this paper provides effective measures to avoid or at least reduce the problems in final account closing to the optimum level. It is also anticipated that the finding or outcome reported in this paper could address the unsuccessful contributors in final account closing and define tools for their mitigation for the better development of construction project.
[1] Abd Shukor, A. S., Mohammad, M. F., Mahbub, R., and Ismail, F.
(2011). Supply Chain Integration in Industrialized Building System in the Malaysian Construction Industry. The Built and Human Environment
Review, 4(1), 108–121.
[2] Abdullah, M. R., Abdul Rahman, I., and Abdul Azis, A. A. (2010).
Causes of delay in mara management procurement construction projects.
Journal of Surveying, Construction and Property, 1(1), 123–138.
[3] Ashworth, A., and Hogg, K. (2002). Willis’s practice and procedure for
the quantity surveyor (12th ed,.). Oxford , UK: Blackwell Publishing
Ltd.
[4] Barrie, D. S. (1984). Professional construction management (2nd ed.).
New York: Mcgraw-Hill.
[5] Chan, A. P. C., Chan, D. W. M., and Ho, K. S. K. (2003). An empirical
study of the benefits of construction partnering in Hong Kong.
Construction Management and Economics, 21(5), 523–533.
[6] Chan, D., and Kumaraswamy, M. (1995). A study of the factors
affecting construction durations in Hong Kong. Construction
Management and Economics, 13, 319–333.
[7] Chow, K. F. (1993). Law and Practice of Construction Contract Claims.
Singapore: Longman.
[8] Chua, D., Kog, Y., and Loh, P. (1999). Critical success factors for
different project objectives. Journal of Construction Engineering and
Management, 125(May/June), 142–150.
[9] Construction Industry Development Board (CIDB). (2011).
Construction Industry Master Plan (CIMP) 2006-2015. Malaysia.
[10] Crosthwaite, D. (2000). The global construction market: a crosssectional
analysis. Construction Management and Economics, 18, 619–
627.
[11] Egen, J. (1998). Rethinking Construction. London.
[12] Gidado, K. I. (1996). Project complexity: The focal point of construction
production planning. Construction Management and Economics, 14(3),
213–225.
[13] Ibrahim, A. R. Bin, Roy, M. H., Ahmed, Z., and Imtiaz, G. (2010). An
investigation of the status of the Malaysian construction industry.
Benchmarking: An International Journal, 17(2), 294–308.
[14] Idrus, A., Sodangi, M., and Husin, M. (2011). Prioritizing Project
Performance Criteria within Client Perspective. Research Journal of
Applied Sciences, Engineering and Technology, 3(10), 1142–1151.
[15] Karna, S., and Jonnonen, H. (2005). Project feedback as a tool for
learning. In International Group for Lean Construction-13. Sydney,
Australia.
[16] Latham, M. (1994). Constructing the Team. London: HMSO.
[17] Lewis, W. A. (1956). Theory of economic growth (edition us.). Great
Britain: George Allen and Unwin Ltd.
[18] Love, P. E. D., Holt, G. D., Shen, L. Y., Li, H., and Irani, Z. (2002).
Using systems dynamics to better understand change and rework in
construction project management systems. International Journal of
Project Management, 20(6), 425–436.
[19] Malayan Banking Berhad. (2011). Maybank Annual Report 2011. Kuala
Lumpur.
[20] Munns, A., and Bjeirmi, B. (1996). The role of project management in
achieving project success. International Journal of Project Management,
14(2), 81–87.
[21] Naoum, S. (2003). An overview into the concept of partnering.
International Journal of Project Management, 21(1), 71–76.
[22] Odeyinka, H., and Kaka, A. (2005). An Evaluation of Contractors’
Satisfaction with Payment Terms Influencing Construction Cash Flow.
Journal of Financial Management of Property and Construction, 10(3),
171–180.
[23] Pheng, L. S. (1994). Balancing construction and marketing in world
economic development: the four global scenarios. Journal of
Construction Management and Economics, 12(2), 171–182.
[24] PWD. (2010). Buku panduan pentadbiran kontrak kerja raya.
(Cawangan Kontrak and Ukur Bahan JKR, Ed.) (3rd Editio.).
KualaLumpur.
[25] Rahman, M. M., and Kumaraswamy, M. M. (2002). Joint risk
management through transactionally efficient relational contracting.
Construction Management and Economics, 20(1), 45–54.
[26] Rosli, A. R. (1988). The Liability of Construction Project Manager and
the Design Teams to the Clients and Buyers. University of Reading.
[27] Shen, L., Hao, J. L., Tam, V., and Yao, H. (2007). A checklist for
assessing sustainability performance of construction projects. Journal of
civil engineering and management, XIII(4), 273–281.
[28] Strischek, D. (1995). Cash Flow Projections for Contractors Revisited.
Journal of Commercial Lending, 77(10), 17–37.
[29] Tse, R. Y. C., and Ganesan, S. (1997). Causal relationship between
construction flows and GDP: evidence from Hong Kong. Construction
Management and Economics, 15(4), 371–376.
[30] Vrijhoef, R., and Koskela, L. (2000). The four roles of supply chain
management in construction. European Journal of Purchasing and
Supply Management, 6(3-4), 169–178.
[31] Wood, A. A. B., Wainwright, and Howard, W. (1963). Variation and
final account procedure. London: Hutchinson Technical Education.
[32] Zakaria, Z., Ismail, S., and Md.Yusof, A. (2012a). Cause and Impact of
Dispute and Delay the Closing of Final Account in Malaysia
Construction Industry. The Journal of Southeast Asian Research, 2012,
1–12.
[33] Zakaria, Z., Ismail, S., and Md.Yusof, I. (2012b). The Closing of Final
Account in Malaysia Construction IndustryV: An Overview on the
Cause and Impact of Dispute and Delay. 19th IBIMA, Barcelona, Spain,
12-13 November 2012 (pp. 1355–1367). Kuala Lumpur: IBIMA
Publisher.
[34] Zakaria, Z., Ismail, S., and Md.Yusof, A. (2013). Effectiveness of
Pavement Management System and its Effects to the Closing of Final
Account in Construction Project in Malaysia. Journal of Physics:
Conference Series, 423, 012034.
[35] Zakaria, Z., Ismail, S., and Md. Yusof, A. (2014). Modelling the
Determinants Influencing the Need of Computer Simulation Framework
in Improving the Closing of Final Account in Construction Projects.
Advanced Science Letters, 20(1), 321–325.
[1] Abd Shukor, A. S., Mohammad, M. F., Mahbub, R., and Ismail, F.
(2011). Supply Chain Integration in Industrialized Building System in the Malaysian Construction Industry. The Built and Human Environment
Review, 4(1), 108–121.
[2] Abdullah, M. R., Abdul Rahman, I., and Abdul Azis, A. A. (2010).
Causes of delay in mara management procurement construction projects.
Journal of Surveying, Construction and Property, 1(1), 123–138.
[3] Ashworth, A., and Hogg, K. (2002). Willis’s practice and procedure for
the quantity surveyor (12th ed,.). Oxford , UK: Blackwell Publishing
Ltd.
[4] Barrie, D. S. (1984). Professional construction management (2nd ed.).
New York: Mcgraw-Hill.
[5] Chan, A. P. C., Chan, D. W. M., and Ho, K. S. K. (2003). An empirical
study of the benefits of construction partnering in Hong Kong.
Construction Management and Economics, 21(5), 523–533.
[6] Chan, D., and Kumaraswamy, M. (1995). A study of the factors
affecting construction durations in Hong Kong. Construction
Management and Economics, 13, 319–333.
[7] Chow, K. F. (1993). Law and Practice of Construction Contract Claims.
Singapore: Longman.
[8] Chua, D., Kog, Y., and Loh, P. (1999). Critical success factors for
different project objectives. Journal of Construction Engineering and
Management, 125(May/June), 142–150.
[9] Construction Industry Development Board (CIDB). (2011).
Construction Industry Master Plan (CIMP) 2006-2015. Malaysia.
[10] Crosthwaite, D. (2000). The global construction market: a crosssectional
analysis. Construction Management and Economics, 18, 619–
627.
[11] Egen, J. (1998). Rethinking Construction. London.
[12] Gidado, K. I. (1996). Project complexity: The focal point of construction
production planning. Construction Management and Economics, 14(3),
213–225.
[13] Ibrahim, A. R. Bin, Roy, M. H., Ahmed, Z., and Imtiaz, G. (2010). An
investigation of the status of the Malaysian construction industry.
Benchmarking: An International Journal, 17(2), 294–308.
[14] Idrus, A., Sodangi, M., and Husin, M. (2011). Prioritizing Project
Performance Criteria within Client Perspective. Research Journal of
Applied Sciences, Engineering and Technology, 3(10), 1142–1151.
[15] Karna, S., and Jonnonen, H. (2005). Project feedback as a tool for
learning. In International Group for Lean Construction-13. Sydney,
Australia.
[16] Latham, M. (1994). Constructing the Team. London: HMSO.
[17] Lewis, W. A. (1956). Theory of economic growth (edition us.). Great
Britain: George Allen and Unwin Ltd.
[18] Love, P. E. D., Holt, G. D., Shen, L. Y., Li, H., and Irani, Z. (2002).
Using systems dynamics to better understand change and rework in
construction project management systems. International Journal of
Project Management, 20(6), 425–436.
[19] Malayan Banking Berhad. (2011). Maybank Annual Report 2011. Kuala
Lumpur.
[20] Munns, A., and Bjeirmi, B. (1996). The role of project management in
achieving project success. International Journal of Project Management,
14(2), 81–87.
[21] Naoum, S. (2003). An overview into the concept of partnering.
International Journal of Project Management, 21(1), 71–76.
[22] Odeyinka, H., and Kaka, A. (2005). An Evaluation of Contractors’
Satisfaction with Payment Terms Influencing Construction Cash Flow.
Journal of Financial Management of Property and Construction, 10(3),
171–180.
[23] Pheng, L. S. (1994). Balancing construction and marketing in world
economic development: the four global scenarios. Journal of
Construction Management and Economics, 12(2), 171–182.
[24] PWD. (2010). Buku panduan pentadbiran kontrak kerja raya.
(Cawangan Kontrak and Ukur Bahan JKR, Ed.) (3rd Editio.).
KualaLumpur.
[25] Rahman, M. M., and Kumaraswamy, M. M. (2002). Joint risk
management through transactionally efficient relational contracting.
Construction Management and Economics, 20(1), 45–54.
[26] Rosli, A. R. (1988). The Liability of Construction Project Manager and
the Design Teams to the Clients and Buyers. University of Reading.
[27] Shen, L., Hao, J. L., Tam, V., and Yao, H. (2007). A checklist for
assessing sustainability performance of construction projects. Journal of
civil engineering and management, XIII(4), 273–281.
[28] Strischek, D. (1995). Cash Flow Projections for Contractors Revisited.
Journal of Commercial Lending, 77(10), 17–37.
[29] Tse, R. Y. C., and Ganesan, S. (1997). Causal relationship between
construction flows and GDP: evidence from Hong Kong. Construction
Management and Economics, 15(4), 371–376.
[30] Vrijhoef, R., and Koskela, L. (2000). The four roles of supply chain
management in construction. European Journal of Purchasing and
Supply Management, 6(3-4), 169–178.
[31] Wood, A. A. B., Wainwright, and Howard, W. (1963). Variation and
final account procedure. London: Hutchinson Technical Education.
[32] Zakaria, Z., Ismail, S., and Md.Yusof, A. (2012a). Cause and Impact of
Dispute and Delay the Closing of Final Account in Malaysia
Construction Industry. The Journal of Southeast Asian Research, 2012,
1–12.
[33] Zakaria, Z., Ismail, S., and Md.Yusof, I. (2012b). The Closing of Final
Account in Malaysia Construction IndustryV: An Overview on the
Cause and Impact of Dispute and Delay. 19th IBIMA, Barcelona, Spain,
12-13 November 2012 (pp. 1355–1367). Kuala Lumpur: IBIMA
Publisher.
[34] Zakaria, Z., Ismail, S., and Md.Yusof, A. (2013). Effectiveness of
Pavement Management System and its Effects to the Closing of Final
Account in Construction Project in Malaysia. Journal of Physics:
Conference Series, 423, 012034.
[35] Zakaria, Z., Ismail, S., and Md. Yusof, A. (2014). Modelling the
Determinants Influencing the Need of Computer Simulation Framework
in Improving the Closing of Final Account in Construction Projects.
Advanced Science Letters, 20(1), 321–325.
@article{"International Journal of Business, Human and Social Sciences:65464", author = "Zarabizan Zakaria and Syuhaida Ismail and Aminah Md Yusof", title = "Fundamental Variables of Final Account Closing Success in Construction Projects in Malaysia", abstract = "Project management process starts from the planning stage up to the stage of completion (handover of buildings, preparation of the final accounts and the closing balance). Seeing as this process is not easy to be implemented efficiently and effectively, the issue of unsuccessful delivery as per contract in construction has become a major problem for construction projects. These issues have been blamed mainly on inefficient traditional construction practices that continue to dominate the current industry. This is due to several factors, such as environments of construction technology, sophisticated design and customer demand, that are constantly changing and influencing, either directly or indirectly, to the practice of management. Among the identified influences are physical environment, social environment, information environment, political and moral atmosphere. Therefore, this paper is emerged to determine the fundamental variables in the final account closing success in construction project. This aim can be achieved via its objectives of identifying the key constraints to the closing of final accounts in construction projects in Malaysia, investigating solutions to the identified constraints and analysing the relative levels of impact of the identified constraints. It is expected that this paper provides effective measures to avoid or at least reduce the problems in final account closing to the optimum level. It is also anticipated that the finding or outcome reported in this paper could address the unsuccessful contributors in final account closing and define tools for their mitigation for the better development of construction project.
", keywords = "Fundamental variables, closing of final account, construction project, Malaysia.", volume = "7", number = "10", pages = "2765-6", }
