i

UNIVERSITI TUN HUSSEIN ONN MALAYSIA

PENGESAHAN STATUS LAPORAN PROJEK SARJANA MUDA

A STUDY ON DELAY OF INDUSTRIALIZED BUILDING SYSTEM (IBS)

PROJECTS IN JOHOR, MALAYSIA

SESI PENGAJIAN : 2017/2018

Saya AFIQAH SHAHIRAH BINTI AHMAD mengaku membenarkan Laporan Projek Sarjana Muda

ini disimpan di Perpustakaan dengan syarat-syarat kegunaan seperti berikut:

1. Laporan Projek Sarjana Muda adalah hak milik Universiti Tun Hussein Onn Malaysia.

2. Perpustakaan dibenarkan membuat salinan untuk tujuan pengajian sahaja

3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara institusi

pengajian tinggi.

4. ** Sila tandakan (√)

SULIT (Mengandungi maklumat yang berdarjah keselamatan atau

kepentingan Malaysia seperti yang termaktub di dalam

AKTA RAHSIA RASMI 1972)

TERHAD (Mengandungi maklumat TERHAD yang telah ditentukan

oleh organsasi/badan di mana penyelidikan dijalankan)

TIDAK TERHAD

Disahkan oleh

__________________________ ____________________________

(AFIQAH SHAHIRAH BINTI AHMAD) (DR. NORPADZLIHATUN BINTI MANAP)

Alamat Tetap:

TB 13150, BANDAR SRI INDAH,

JALAN AIRPORT, 91000,

TAWAU, SABAH.

Tarikh : ___________________________ Tarikh: _____________________________

CATATAN:

** Jika Laporan Projek Sarjana Muda ini SULIT atau TERHAD, sila lampirkan

surat daripada pihak berkuasa/organisasi berkenaan dengan menyatakan sekali

sebab dan tempoh tesis ini perlu dikelaskan sebagai SULIT atau TERHAD.

ii

A STUDY ON DELAY OF INDUSTRIALIZED BUILDING SYSTEM (IBS)

PROJECTS IN JOHOR, MALAYSIA

AFIQAH SHAHIRAH BINTI AHMAD

A thesis is submitted in fulfilling of the requirement for the awards of the Bachelor

Degree of Technology Management (Construction) with Honours

Faculty of Technology Management and Business

University of Tun Hussein Onn Malaysia

JUNE 2018

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“I hereby declare that I have read this report and in our opinion this project report is

sufficient in terms of scope and quality for the award of the Degree of Technology

Management (Construction).”

Supervisor : ……………………………………………..

DR.NORPADZLIHATUN BINTI MANAP

iv

I declare that this project is the result of my own research and that all resources are

acknowledge in the references.

Signature : …………………………………………

AFIQAH SHAHIRAH BINTI AHMAD

Date : …………………………………………

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DEDICATION

Especially to my beloved Mother and Father,

Rusiah Binti Tigi & Ahmad Bin Abdul Salam

Thank you for all the support and love which have been given to me along my

journey to complete this research. Giving me the greatest advice from my initial up

till my end journey of this road of fulfilling the responsibility as a daughter and a

student.

For my beloved supervisor,

Dr. Norpadzlihatun Binti Manap

Thank you for all the support and guidance throughout my entire journey of

completing this research. For your concern, patience in every challenging work, I

would always be thankful to you.

For my beloved friends,

Thank you for all the encouragement you have given me in completing this journey.

All the love and support has led me to a great success. All the ups and down during

my entire journey.

May Allah bless you always.

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APPREACIATION

ب س ر ب هـل ب م م ـس ب ـن ـ ـن

ASSALAMUALAIKUM WARAHMATULLAHI WABARAKATUH

In the name of Allah S.W.T, the Entirely Merciful,

First of all, I would like to express my greatest gratitude towards my supervisor Dr.

Norpadzlihatun Binti Manap, for the unlimited support, guidance and ideas in helping me to

complete the research of this study.

And to forgetting, my family and friends which has been my backbone from the first

phase until the end in completing this work. Not to mention for all the barriers and hurdle

especially in collecting and completing my data collection, thank you for all the parties which

involved directly and indirectly to help in me in achieving my objectives and target. So that I

can get to where am I right now.

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ABSTRACT

Industrialised Building System is seen as the alternative way in solving the issue

related to decrease the percentage of workers, fulfilling the demand of

accommodations and increase the productivity of the end product in construction

industry, which the traditional method could not cope. However, there are projects

implement IBS have been delayed. Therefore, a study has been conducted at Johor,

Malaysia which have the third largest number of manufacturers of IBS. The study were

conducted in order to identify the main factors, the effects of the delay in IBS project

and to identify the prevention method to minimize the delay occurrence. The data

collection was done through quantitative method, where 40 of respondent completed

the questionnaire. The data was analyse using the SPSS software. From this study, it

can be concluded that the main factors caused the delay of IBS project were the

maintenance in transportation, lack of knowledge for the right technique, delay in

progress payments, poor guideline and incorrect installation of the IBS components.

The effect of the time overrun due to the incorrect installation, unforeseen and

unpredicted risk by the cost overrun and disputes among project team are the effect in

this event of IBS project delay. There are several critical method of prevention which

has been discovered during the period of research, include the project learning,

knowledge management and frequent progress meeting.

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ABSTRAK

Sistem Binaan Berindustri (IBS) dilihat sebagai cara alternatif untuk menyelesaikan

isu yang berkaitan dengan pengurangan peratusan pekerja, memenuhi permintaan

perumahan dan meningkatkan produktiviti untuk hasil dalam sesuatu produk terutama

di dalam industri pembinaan, yang tidak boleh dilaksanakan oleh kaedah traditional.

Walaubagaimanapun, terdapat projek yang melaksanakan sistem IBS ini juga telah

ditangguhkan. Oleh itu, satu kajian telah dilakukan di Johor Bahru, Malaysia, yang

mempunyai purata bilangan pengeluar IBS yang ketiga terbesar di seluruh Malaysia.

Kajian ini dilakukan untuk mengenalpasti factor utama, kesan-kesan penangguhan di

dalam projek yang melaksanakan sistem IBS dan untuk mengenalpasti kaedah

pencegahan untuk meminimumkan kejadian lewat siap dalam sesebuah projek.

Pengumpulan data dilakukan melalui kaedah kuantitatif, dimana 40 responden untuk

menyiapkan soal selidik. Data tersebut dianalisis dengan menggunakan perisian SPSS.

Melalui kajian ini, dapat disimpulkan bahawa factor utama yang menyebabkan

kelewatan projek IBS adalah dari segi penyelenggaraaan pengangkutan, kekurangan

pengetahuan untuk teknik yang betul, kelewatan pembayaran daripada pihak pemaju,

garis panduan yang lemah dan pemasangan komponen IBS yang tidak menepati

sasaran. Kesan kepada masa adalah disebabkan melalui pemasangan yang tidak betul,

risiko yang tidak dijangka dan pertikaian dan pertelengkahan di antara pasukan projek

adalah kesan di dalam kelewatan projek IBS. Terdapat beberapa kaedah pencegahan

kritikal yang telah ditemui dalam tempoh penyelidikan, termasuklah pembelajaran

projek, pengurusan pengetahuan dan kekerapan mesyuarat.

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TABLE OF CONTENTS

TITLE ii

ACKNOWLEDGEMENT iii

DEDICATION v

APPRECIATION vi

ABSTRACT vii

TABLE OF CONTENT ix

CHAPTER 1

1.1 Introduction ................................................................................................... 1

1.2 Background of Study ..................................................................................... 3

1.3 Problem Statement ........................................................................................ 4

1.4 Research Questions ....................................................................................... 5

1.5 Objectives of the Study ................................................................................. 5

1.6 Scope of Study ............................................................................................... 5

1.7 Thesis Organization ....................................................................................... 6

1.8 Methodology ................................................................................................ 8

1.9 Significance of Study .................................................................................... 8

1.10 Expected result ............................................................................................. 9

CHAPTER 2

2.1 Introduction ................................................................................................. 10

2.2 Experienced in IBS ..................................................................................... 11

2.3 Experiences of other countries in IBS ........................................................ 11

2.3.1 Japan ............................................................................................................. 11

2.3.2 Argentina ....................................................................................................... 12

2.4 Delay in Construction Industry ................................................................... 13

2.5 Types of delay ............................................................................................. 14

2.5.1 Compensable delay ..................................................................................... 15

2.5.2 Excusable delays .......................................................................................... 15

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2.5.3 Non excusable delays .................................................................................. 15

2.6 Delay in construction using the IBS System .............................................. 16

2.6.1 Pre-construction phase ................................................................................. 16

2.6.2 Construction phases .................................................................................... 17

2.6.3 Post Construction ........................................................................................ 18

2.7 Effect of the Delay in Implementing the IBS System ................................ 18

2.8 Delay Factor by Implementing the IBS System ......................................... 20

2.8.1 Transportation .............................................................................................. 20

2.8.2 Coordination in IBS project ....................................................................... 22

2.8.3 Monetary Issues ............................................................................................ 23

2.8.4 Non Effective Communication between Parties ..................................... 24

2.8.5 On-Site Construction Process ..................................................................... 25

2.9 Prevention of Delay in IBS project ............................................................. 27

2.9.1 Knowledge Management ............................................................................ 28

2.9.2 Project Learning ........................................................................................... 29

2.9.3 Analyse Requirement in Detail .................................................................. 29

2.9.4 Map Available Resources ........................................................................... 31

2.9.5 Frequent Progress Meeting ......................................................................... 32

2.9.6 Competent Project Manager ....................................................................... 32

2.9.7 Accurate Initial Estimates ........................................................................... 32

2.9.8 Accurate Time Estimates ............................................................................ 33

2.9.9 Awarding bids to the right contractor ........................................................ 33

2.9.10 Organizing Project Team Member............................................................. 34

2.9.11 Discussing Problems .................................................................................... 34

2.9.12 Quantity Surveyor to Avoid Cost and Time Overrun ............................. 35

CHAPTER 3

3.1 Introduction ................................................................................................. 36

3.2 Research Design .......................................................................................... 37

3.3 Methodology of Study ................................................................................. 38

3.3.1 Flow Chart of the Methodology Study ..................................................... 38

3.4 Data Collection ........................................................................................... 40

3.4.1 Primary Data ................................................................................................. 41

3.4.2 Secondary Data ............................................................................................. 41

3.5 Respondent of the Study .............................................................................. 42

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3.6 Data Analysis Process ................................................................................. 42

CHAPTER 4

4.1 Introduction ................................................................................................ 43

4.2 Questionnaire Design .................................................................................. 44

4.3 Data Collection ............................................................................................ 45

4.4 Analysis Method .......................................................................................... 45

4.5 Data Analysis Section A: Respondent Background .................................... 46

4.5.1 Gender............................................................................................................ 46

4.5.2 Nationality ..................................................................................................... 46

4.5.3 Job Specification .......................................................................................... 47

4.5.4 Experiences of Working .............................................................................. 48

4.6 Data Analysis for Section B ........................................................................ 49

4.6.1 Summary of Main Factors Causing the Delay in Construction Project

by Using the IBS System ............................................................................ 50

4.6.2 Summary of Determining the Effect of Delay in IBS System in

Construction Industry .................................................................................. 59

4.6.3 Summary of Methods in Preventing the Delay in IBS Projects ............. 65

CHAPTER 5

5.1 Introduction ................................................................................................ 69

5.2 Research Discussion .................................................................................... 70

5.2.1 First Objective: To identify the Factors Causing the Delay in

Construction Project by Using the IBS System. ...................................... 70

5.2.2 Second Objective: To Identify the effect of delay using the IBS system

in construction industry. .............................................................................. 73

5.2.3 Third Objective: To Identify the Methods in Order to Prevent the Delay

in Construction Industry Which Adopting the IBS System. .................. 74

5.3 Research Limitation .................................................................................... 74

5.3.1 Method of Data Collection .......................................................................... 74

5.3.2 Sample Size of Research ............................................................................. 75

5.3.3 Lack of Previous Studies in Research Area .............................................. 75

5.4 Recommendation ......................................................................................... 75

5.4.1 Location of Research Conduct ....................... Error! Bookmark not defined.

5.5 Conclusion ................................................................................................... 76

REFERENCE ........................................................................................................... 78

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LIST OF FIGURE

1.1 Integrated project team approach 6

2.1 Types of delay 14

2.2 Over the wall syndrome 31

3.1 Flow chart of Methodology study 39

3.2 Flow chart of data collection 40

4.1 Nationality of respondent 47

4.2 Job specifications of respondent 48

4.3 Working experiences for respondent 49

4.4 Maintenance in transportation 52

4.5 Distance between IBS manufacturers and sites 52

4.6 Lack of knowledge for the right technique 54

4.7 Time overrun effects the delay in IBS projects 60

4.8 Unpredicted addition towards the IBS projects 62

4.9 Unforeseen of the site in IBS projects 63

4.10 Disputes elimination during final account 65

4.11 Percentage of method in preventing delay in IBS projects 69

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LIST OF TABLE

2.1 Prefabricated housing market share in Japanese 12

2.2 Argentina market for Industrialized Housing System 13

2.3 Minimization of construction delays 28

4.1 Percentage of responded questionnaire 46

4.2 Gender of respondent 47

4.3 Transportation factor causing delay in construction project 50

4.4 Coordination in IBS projects causing delay 53

4.5 Monetary issue in IBS projects 55

4.6 Non-effective communication between parties 56

4.7 On-site construction process in IBS projects 58

4.8 Time overrun effect in delay 59

4.9 Cost overrun effects in delay 61

4.10 Disputes among parties effect in delay 63

4.11 Methods in preventing delay in IBS projects 65

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CHAPTER 1

INTRODUCTION

1.1 Introduction

Industrialized Building System is a technique of construction using the prefabrication

of components, manufactured at the factories, transported to the site, positioned and

being assembled into a structure with minimal site work in building construction

(CIDB, 2003). The components are designed and detailed according to the

standardization as it acquired, and then ready to be assembled on site. Generally, IBS

system are divided into five main categories which are the precast concrete system,

steel formwork system, block work system, steel framing system and prefabricated

timber framing system (Mydin et al., 2014a). The classification of IBS method are

divided into two main classes, the open system and the closed system. For the open

system, all of the components are being standardized and offer in the variety of design

and flexibility, while for the closed system, all of the elements are specifically made

in the factory, and also need to be more detailed and have more specification (Mohd

Nawi et al., 2015).

Industrialised Building System also defined as the method of whole

components where each part of the structure or building including wall, floor, roof,

ladder and others are constructed in a factory, or on the construction site with a strict

supervision, and only from the professional and skilled person, to be assure on the

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quality and on the product (Mohd Nawi et al., 2015). It is introduced as the effective

way in solving the issues regarding the dependencies of foreign workers, increasing of

demand to the accommodations, also the need to improve of image, quality and

productivity of the construction industry in Malaysia (Sashitharan et al., 2014).

Government’s policy has opening the door of opportunity to the Industrialized

Building System (IBS) that offer a better quality, cost effective and confer a better

time in construction period (Alaghbari et al., 2007). IBS were also widely used in other

developed country within their construction industry such as Japan, Singapore, and

other Europe country. This system were acknowledge as the method to attain much

better of quality and productivity in construction, to minimalize the risk in safety and

health, to reduce the dependency on manual foreign workers, and mostly to have a

lower overall cost in construction. This system also offer the minimal wastage due to

method were all the components are construct in the factories, this will indirectly lead

to a cleaner and neater environment which take a huge difference from the traditional

method (Pan et al., 2009).

Construction Industry Development Board (CIDB) has risen up the

implementation of the Industrialized Building System in construction industry through

the Roadmap of IBS (CIDB, 2003). By using the IBS system, this will help to meet

the increasing demand of the housing unit in Malaysia. In order to deal and fulfil the

demand of the affordable house, the government has taken the initiative where the IBS

system are very obvious and the most effective way on solving the problems

(Mohamad et al., 2016). Between the year of 1995 until 2020, Malaysia has stated that

it will need the total of 8,850,554 unit of houses, which in the average of 900,000 units

of house that the construction industry would need to build in every 5 years in order to

fulfil the demand of housing in Malaysia (Alaghbari et al., 2008).

Before construction industry in Malaysia adapted and practicing the IBS

system, several project have to bear with serious problem that have affected the

construction performance and causing the delay and lengthen the period of the

constructions project. After the implementation of the IBS system, the government still

have a less favourable and support from the construction professional due to delay by

major factors which has caused a huge of side effect toward the performance of the

construction industry (Mohd Nasir et al., 2016).

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1.2 Background of Study

Construction industry plays an important roles in enhancing the development of the

country. Although in Malaysian construction industry were already in a rapid growth

phases, but we are still facing some major issues including the huge of construction

waste, too dependent on the foreign workers and poor performance in time and cost.

And this has directly bring out the critical issues which every construction players been

struggling with, which is the delay of the construction project. It is revealed that there

were only 8% of project could achieve the completion within the period of time given,

while the other 92% facing the delay of project issue. Major contribution of this delay

issues are the design and documentation, administration issue and also the financial

resource (Memon et al., 2012).

There are 49.71% of delay project happened in construction industry in

Malaysia, and this has proved that the delay phenomenon is a habitude, even since the

construction industry has begun. After the adoption of IBS system are being practised

in Malaysia, the delay of project has been increasing due to several prominent factors.

Among of the factors that has led to this delay are the poor integration of the parties,

the low number of skilled people that makes it difficult in practising the IBS system,

the lack of readiness by the construction players in adapting the system, and the poor

financial management, where the IBS system required a huge initial capital (Mohd

Nasir et al., 2016).

There are some of the contractors who compared the initial costs between the

traditional method and Industrialized Building System, and stated that the IBS system

were overall cheaper and using less initial capital. But due to the past experiences of

the construction industry professionals, it is showed that using the IBS system is far

more expensive (Sashitharan et al., 2014).

1.3 Problem Statement

In Malaysia, tremendous population create a great forward demand especially in

housing, emphasis to the urban area. And the Industrialized Building System has been

seen as the ultimate solution of the issues related to the high productivity and

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development in Malaysia. The implementation of the IBS system were also been

enhanced and supported by the Government of Malaysia which has put a requirement

of using 70% of IBS in the construction project (Mohammad et al., 2016). Although

IBS system were acknowledge to prevent or decreasing the chance of critical issues

that have been risen among the construction players through this several decade. This

system can also cause prolong in the construction project (Mohd Nasir et al., 2016).

As in Kuching Sarawak case, a construction project at SK Pulau Seduku, Sri

Aman were using the IBS system and facing a delay. The project worth RM28.5

Million was awarded to public company in Peninsular Malaysia in April 2016. The

project were scheduled and expected to be completed by October 2016, but eventually

it is extended to January 2017. The project are consisted of building with six classroom

boarding school with facilities to accommodate 12 teachers and 26 students. The

previous Prime Minister Datuk Seri Najib Tun Razak even personally involved in the

fast-tracked IBS projects, in delivering the projects. There should be a review towards

the renovation by the expertise and professionals to ensure a proper monitoring on the

dilapidated schools, so that the project can be carried out without excessive costs, and

to make sure that the construction work must be completed and delivered on the time

given (Bujang, 2017).

1.4 Research Questions

1) What are the main factors that have caused the delay of construction project by

using the IBS?

2) What are the effects of delay in construction project by using the IBS method?

3) What are the methods taken in construction industry in prevention of delay by

implementing IBS system?

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1.5 Objectives of the Study

1) To identify the main factors causing the delay in construction project by using

the IBS system.

2) To determine the effect of delay using the IBS system in construction industry.

3) To identify the methods taken in construction industry in prevention of delay

by implementing IBS system.

1.6 Scope of Study

The study was done based on the scope limit to ensure the objectives of the study

achieved. The first objective of this research was to identified the factors caused the

delay in construction projects by using the Industrialized Building System, second

objectives was to determine the effect of delay using the IBS system in construction

industry and the third one was to identified the methods in order to prevent the delay

in construction industry which adopting the IBS system.

The study was involved and separated into 3 specific parts. It was the area of

the study, the method of the study and also the involvement of the respondent in the

construction industry. This study was conducted at Johor Bahru, Malaysia. The reasons

of this research was conducted in Johor Bahru, was because it has the huge numbers

of construction project which using the IBS system in order to complete the

construction project. Johor Bahru is the second highest number of construction place

among the other states which adopting the IBS System in their construction projects

(Azman et al., 2011). And the reason to choose the four particular of the respondent,

was because each of them contribute to a huge involvement in the usage of IBS system

in construction industry. The integrated project team approach are as shown in Figure

1.1 below.

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Figure 1.1: Integrated project team approach

This research was conducted using the quantitative research which consists of two

methods including the primary and secondary method. The primer method was

conducted by distributing questionnaire to the selected respondent. While the

secondary method, is validating the data from the journal regarding the study of this

research. Quantitative method was suitable to conducted and used for this study

because of the considerable number of respondent.

The targeted respondents involved in this study was the practitioners and

professionals in construction industry such as contractors, engineer, the architect and

also the quantity surveyor whom highly involved in the projects. The topic of this study

was focused on the projects that implementing the IBS system in their construction

project and emphasis on the delay factors on a particular projects.

1.7 Thesis Organization

The study of this research was to identify the delay factors in construction industry

which implementing the IBS system. This study was conducted and organized into

five chapters. The first chapter was the introduction about the research and the issue

that has been rising in Malaysia, and can be related with the study. This chapter was

also discussed about the objectives of the study and scope of the research. This have

given a bigger picture throughout the whole content of the thesis.

Chapter 2 consist of the overview of the construction industry, the usage of the

IBS system in the construction industry, the delay factors that led to prolong of the

IBS projects, the effect of the delay in IBS and also the methods of prevention for the

Project model

Engineer Client

Architect Contractor

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delay in IBS projects. This chapter was thoroughly explained about the delay factors

which can affect the construction projects and also what caused and reason to the

event. Also, this chapter has explained thoroughly on the method on how to prevent

the delay factors that is happening in the construction industry, especially in Johor

Bahru, Malaysia

Chapter 3 consisted of the methodology of this research, which consists on how

was the collection of the data throughout the study, observation of the case study,

questionnaire and respondent involved, also included the method which helped to

validate and justify the study of this research.

Chapter 4 involved the data analysis from the data collected from the selected

respondent. The information was collected from the total number of 40 respondent

included the client, quantity surveyor, engineer and also consultant. Each of the data

was then analyse using the SPSS software, and the finalize data was then approved

and supported by the past researcher which also studied the delay in IBS projects. This

is to ensure the validation of the data gained from this research would be useful to the

future researcher to improve from this data analyse. The data analyse from this study

had achieved the total three (3) of the objectives which was the factors of the delay in

IBS projects, the effect of the delay and also the method of prevention for this delay

in IBS projects.

Chapter 5 had discussed the research discussion towards the identification of

the factors in delay of IBS projects. From this discussion, it had explained the critical

factor which had led to the delay in IBS factors. Also, included the research discussion

on the effect and methods of prevention which the researcher also choose the critical

issue related according to the event of IBS project delay.

1.8 Methodology

Methodology research was the method which used to achieve the objectives of this

study. The objectives of the study stated in this research was the factors which had

caused the delay in IBS projects, the effect of the delay in IBS projects and also the

prevention methods for the delay in IBS construction projects. Before the methodology

research has been selected, the problem statement was identified through the issue that

has been risen in Malaysia. For this research, the issue in Kuching, Sarawak was arised

8

due to the delay of the IBS projects, as the project was expected to be completed on

October on 2016, but had to be extended to January 2017.

After that, the specific objectives was then stated clearly as to solve the

problem in this study research (Chua, 2009). After the problem statement and the

objectives of the study has been identified, the research was done within the scope of

the study. Which include the area of the study, the respondent and also the method

used in the research. The method of quantitative was selected to proceed into collecting

and analysing the data of this study.

The quantitative method was divided into two main section which is the

primary method and secondary method. The primary method which consist of the

procedure in distributing the questionnaire to the selected respondents who involved

and participate in the construction field. And the respondent included was the

contractor, engineer, client and quantity surveyor. While for the secondary method,

the data was gain through the journal and article in related with the study (Forman et

al., 2008). This method was suitable to gain the sufficient data and information to

achieve the objectives of this study.

1.9 Significance of Study

This study was conducted in order to identify the factors of delay projects emphasizing

on the usage of IBS system. And also to determine the effect of the delay in

construction industry in Malaysia which occur in Johor Bahru construction field and

the methods taken into prevention of the delay in the IBS construction projects.

Therefore, effective measure was done to avoid or at least to reduce the possibility in

the delay of construction projects particularly to the construction company which

implemented the IBS system.

The effort of preventing the delay phenomenon can be done with the

collaboration of every parties in the construction industry either from the private or the

government sectors. With this huge effort being taken, this has directly reduce the

percentage of the delay happening in the construction field especially to the projects

that using the IBS system in completing the project. Besides, the academics also can

refer to this thesis in order to obtain the greater knowledge and data specifically to the

study of the research. With this, all the parties will be involving and responsible in

9

spreading the knowledge and creating a better strategies in order to make the

prevention of the delay in construction projects.

1.10 Expected result

As from this research, the expected result was achieved due to the achievement in the

objectives of the study. The result need to be consistent with the objective of the study

which was to identified the effect of delay by using the IBS method in construction

industry, identified the main factors causing the delay in construction project by using

the IBS method and to identify the methods taken in order to prevent the delay in the

construction industry which adopting the IBS method.

10

CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

The idea of Industrialized Building System has received so much attention after the

Second World even though Malaysia did not get have much impacted from the war

(Thanoon et al., 2002). While Malaysia is progressively moving towards the

industrialization, the construction industry also indirectly need to contribute in the

development of the country. Where construction industry in Malaysia plays a very

important role and a rapid growth since the independence (Memon et al., 2012).

IBS system has already started to catch the eyes of the construction practises

and can be tracked as early as in the year of 1960’s (Jabar et al., 2013). There are six

main of in the IBS system which are popular and mostly used in Malaysia which is

pre-cast concrete framing, steel formwork system, steel framing system, timber

framing system, blockwork system and last but not least, the innovative system

(Malaysia Equity, 2014). It can be define as a construction technique where the

building components are produced in a large-scale production where the components

are manufactured in the factories, and then it get transported and erected into a

structure at the construction site, with a minimum and limited on site work (Jabar et

al, 2013).

11

The Malaysian government has seen the IBS system as a new way in improving

the construction industry, and also can competed with other developed country and

global market (Razak et al. 2014). The government then launched the IBS Strategic

Plan in 1999, while the IBS Roadmap 2003-1010 was introduce in 2003. The

government also stated that every government projects will carry 70% of the IBS

system. While in private sector, the IBS Roadmap 2011-2015 has promoting the IBS

system for the usage of at least 50% content in the construction project (Malaysia

Equity, 2014).

2.2 Experienced in IBS

In 1964, government make a huge decision by trying two pilot project which the

construction content using the IBS concept. The first constructed project was along

Jalan Pekeliling of 22.7 acres where the construction included seven blocks of seven

storey flats, and four blocks of 4-storey flats which accommodate about 3,000 units of

low cost flats and 40 storey shop lots. The project were handled by the

Gammon/Larson Nielsen, where they chose to use the Danish system of large panel

industrialised prefabricated systems (Thanoon et al., 2003).

While for the second pilot project was built in Pulau Pinang, which the

construction included six blocks of seventeen storey flats and three blocks of eighteen

storey flats accommodate 3,699 units and 66 units of shop lots along Jalan Rifle Range.

The project using the French Estiot System and was awarded and accomplished by

Hochstein/Chee Seng (Thanoon et al., 2003)

2.3 Experiences of other countries in IBS

2.3.1 Japan

Japan has started the construction of using the IBS system in 1960’s, and the market

share have change dramatically ever since. In the Japanese fiscal year of 1999 around

April 1999 to March 2000, the construction of house in Japan has a total of 20% where

the steel framing system has dominated the market with 73% of share (Thanoon et al.,

2003).

12

Table 2.1: Prefabricated Housing Market Share in Japanese Year 1999

(April 1999-March 2000)

No Framing Structure Market Share,%

1. Steel Framing 73

2. Wood Framing 18

3. Concrete Framing 9

2.3.2 Argentina

In Argentina, the IBS system market share were increased from U.S. 42.5 million in

year 1995 to U.S. 65.9 million in year 1996. Which has showed the increase of 10%

growth rate. In 1996, the United State has dominated the import market in about 70%

(Thanoon et al., 2003).

Table 2.2: Argentina market for Industrialised Housing System

(Millions of Dollars)

No Market 1995 1996 1997 Annual Growth

Rate, %

1 Import market 18 22.5 25.9 12

13

2 Local production 25 40 44 10

3 Export 1.5 2.8 4.0 8

4 Total market 41.5 59.7 65.9 10

5 Import from US 12.6 15.8 18 15

2.4 Delay in Construction Industry

Delay in construction industry is a major and serious issue for the construction

professionalism. This is due to the construction phenomenon where it is considered as

a very unique, which it can influenced the growth of other industrial sectors. Especially

to the contractors, client and consultant who plays an important roles in ensuring the

construction process run smoothly and completed in a given time. Construction delays

will led to a high cost in construction projects along and prolong the time (Tumi et al.,

2009).

Developed countries, as well as the developing nations, including Malaysia,

which is now at speed track of reaching the same level as the other high developed

countries. For close example, Singapore, Thailand and Vietnam. This developed

countries realized on the significance of construction sector to the development of

country. There was a direct relationship between the construction sector and the other

sectors towards the output of the particular nations. This sector has played a very

important role in creating the opportunities upon the employment for the society and

people surrounding, and also generate a new source of income in that particular area.

Variation of field in the construction sector has open up the chance for employment or

promotion, and giving an impact towards the society and also the economy of the

countries (Khan, 2014).

Different construction project has a different causes of delay. Some can be

overschedule just by a split of days, while some of the projects can reach up to over a

years. As a consequences, delay are common. So it is very crucial to detect and define

what are the causes of the delay in particular construction projects, so the constructions

14

practitioners or the parties involved can minimize or even avoid the delays in their

construction projects. (Alaghbari et al., 2007).

2.5 Types of delay

Delay can be classified into three main categories, and this is depends on how it is

operate (Yusof et al., 2007).

Figure 2.1: Types of Delay

2.5.1 Compensable delay

The excusable compensable delays are generally caused by the owner or its agents.

This delays caused which the construction contract allows to claim the additional

monies equally they have lost due to the delay and the additional time. Examples of

this type of delay are caused by the late instruction given to the contractor, delays in

terms of approval of material, inadequate drawings and specifications, owner changes

of design and owner’s failure in responding to the requests of information by the

contractors (Yusof et al., 2007).

TYP

ES O

F D

ELA

YCompensable

delay

Excusable delay

Non Excusable delay

15

2.5.2 Excusable delays

This type of delay are when the construction contracts allowing the contractor the

additional time equally to the time consumed by the delay. These delays also known

as the acts of the God because the circumstances are not the responsibilities fault from

any parties from the particular construction projects. Some of the example of excusable

delays are force majeure, strike and inclement weather. Most of the contractors where

given the extension of time, but not for the additional money (Alaghbari et al., 2007).

2.5.3 Non excusable delays

This type of delays are those for the contractors which is not entitle to claim any

extension of time or additional money to the construction projects that are awarded to

them. Basically, the delay are caused by the contractors themselves, or other involves

parties such as subcontractor and the suppliers of the materials. Therefore, there are no

additional money and additional time entitle to the contractor (Alaghbari et al., 2007).

2.6 Delay in construction using the IBS System

Although the IBS system usage are being acknowledge as one of the system which can

help the construction phase in towards a greater concentration on achieving a better

quality and high productivity, which will meets the demands of the client (Yahya et

al., 2012). However, every parties that involved in the construction industry should

have pay more attention and concern to the improvement of the IBS system, which

will contribute to the improvement of the benefits and advantages that IBS System can

offer to this industry. And eventually may avoid the consequences of delay in the

construction project (Alaghbari et al., 2008).

There are some generic issues in construction industry using the Industrialized

Building System. Major contributor in the delay of construction project using the IBS

system can be divided into three categories, pre-construction phase, during

construction and post construction (Jabar et al., 2013).

16

2.6.1 Pre-construction phase

Pre-construction phase were the initial stage and also the planning phase, where this

stage include the project scope, identifying the resources for the projects, developing

the budget, scheduling, also the involved the risk management. Issues related to the

delay of the projects including the high initial of cost where the contractors having a

difficulties in organizing and allocating. It requires a huge consideration in investment

including the specialized equipment and machineries, human resources,

transportations process and setting for the construction (Jabar et al., 2013). It is known

that the owner of the construction projects with the IBS adoption have to bear a very

high cost to build factories and also purchasing the expensive support machineries due

to the large components of the IBS. In IBS construction project, it is compulsory to

have a specific and particular machineries and equipment to ensure the work can be

done at optimum (Mohd Nasir et al., 2016).

On the other hand, the process to construct the facility will also influence the

project duration. Lack of expertise in handling the materials and equipment will led to

a low quality for the final products. Also, the issue that contribute to the delay factor

within this phase are the integration with the project team. For example, the

involvement of the contractor only after the design phased has preventing them to

share their opinion on the design of the structure. Poor planning will also led to a

slower process during the projects (Jabar et al., 2013).

2.6.2 Construction phases

The main advantages while practices in construction industry applying the IBS system

in their construction project, is to reduce the dependency of the unskilled foreign

workers. This is the phase where the process of installation of the components of IBS

and the erection is carried out at the construction site (Jabar et al., 2013). For the

construction which apply the IBS system, the requirement is for the specialist skills

workers while conducting the installation process which depends on the machine

oriented skills is high. Most programs are still practising the conventional forms and

guidance and they are not emphasizing the pre-training of the IBS components

(Malaysia Equity, 2014).

17

The contractors and all the parties involves need to have a greater

understanding in dealing with the issue regarding the implementation of the IBS

system. IBS components which also known to be produced in the factory, also can be

produced at the site project, but due to lack of space, the on-site casting yard could be

realized. There were also a high risk of damaging the components especially it is not

properly stored. And this will resulting to a higher cost, time and also the process in

completing the construction project (Jabar et al., 2013). While in the terms of

transportation, it is considered as a crucial external factors that causes the delay in

construction project. Transportation is very important and it can be the factor

responsible to the arrival of the materials and equipment at the site projects. This

factors can be caused by the roads, utilities and public services (Alaghbari et al., 2007).

Although the components of the IBS are standardization in building, but it still

comes with some technical issues such as low interfaces between the components,

interfaces of the existing building to the new components, the difference of joints made

by the components of site installed and from the factory (Jabar et al., 2013).

2.6.3 Post Construction

The effectiveness of the IBS implementation can be acknowledge after the completion

of the construction project, where it is assessed based on the quality of the end product.

But in some cases, although the project implementing the IBS system, but it also

contributing to the poor qualities of the product. The failure in implementing the IBS

system can be caused by the insufficient of technical knowledge, functional faults,

improper jointing and also during the handover period which have led to further

maintenance in the upcoming (Jabar et al., 2013).

2.7 Effect of the Delay in Implementing the IBS System

Construction in Malaysia has no exception in dealing with the problems of delay.

Effects of delay in construction are time overrun, cost overrun and the disputes of the

project team. Effect of the overrun of construction projects schedule, was the effect or

the result that occurred, when the activities of the projects are not worked in

effectively. The first effect was the time overrun, was when the time of completion

18

were extended forward from the schedule, the project is said to be declared as overrun

in schedule. This also referred to the late of delivery or late of completion for the

project, from a given time agreed by the owner and the project team. This event can

cause by the financial problem, change of order and also due to the organizational

management changes (Mukuka et al., 2015).

The second effect of the delay was the cost overrun. Cost overrun was

explained as when a projects was completed with a higher cost compared to the actual

budget. The critical factors which caused the effect by the cost overrun, was the

changes of scope of work, the incomplete design, the extension of time and the lack in

the cost planning by the management in that particular project especially in IBS

projects (Mukuka et al., 2015). A statistic shown that only 30% of overall construction

project was completed in the given time. The observation towards the terms of time

was also seem to be poor in related to the construction industry, where a researcher

has drawn a statistic which shown that 7 out of 10 projects have suffered in the

execution of the projects. Usually, when a project was extended, this will indirectly

led to the additional cost. Although there was a situation where the party involves were

agreed on the extra time after negotiation was agreed, but this has entitled to the

contractor to claim the extra cost, which brings the bad and negative impact towards

the relationship between the contractor and also the client. In Malaysia, about 17.3%

of government contract project was delayed due to the duration of more than 3 months

of extended time from the actual time schedule (Sambasivan & Soon, 2006)

Time is very essential in all the activities of projects, if the delivery time of

project has exceed more than it is given, then more money will be spent, and this

directly increase the final cost of the project and also wastage of labour workers and

resources. The delay also can reducing the profit of the client (James et al., 2014).

Effect of delay in construction industry has revealed that clash, claim and the total

abandonment will decrease the growth in the construction industry. The relationship

between the causes and effect have two types which include the direct relationship and

indirect relationship (Samarah & Bekr, 2016).

The identified third effect of delay in the IBS projects was the dispute among

the project team. Understanding towards the contractual terms, or the agreement

between parties related in a construction project need to be done in order to avoid the

misunderstanding between the project team, and eventually led to the disputes (Al-

momani, 2000). When a project is delayed, the owner would have the duration of the

19

project to be extended or with the option to accelerate the time, but initially increasing

the cost of the project given from the first phase. And this has been found to be

inadequate which was far beyond the owner capacity compared to the before delayed

situation. In some cases, client are not prepared for the extra and unexpected cost,

which this delay problems finally resulted to the disputes, arbitration, total

abandonment by the parties involved, and also the litigation by the parties (Aibinu &

Jagboro, 2002).

For today’s economic environment, the requirement for the construction

projects to be done in Iron Triangle, which included the time, cost and quality is

compulsory. So the expected performances can be achieved. Time and cost overruns

are directly proportional to the growth of national economy, and initially hold back the

development of the construction industry. A study has been done, which resulting to

the conclusion of long-duration projects, was having a higher cost and overruns of

schedule compared to the short-duration construction projects (Senouci, et al., 2016).

2.8 Delay Factor by Implementing the IBS System

The Industrialised Building System are often explained as the method or approaches

in construction with several limitations by the parties involved in the construction field

(Mydin et al., 2014). Generally, it is strongly agreed that the implementation of the

IBS system will led to a high productivity a good quality of product. And it is identified

as a potential method in order to improve the overall construction performance in terms

of quality, cost, safety and waste reduction (Kasim et al., 2015).

2.8.1 Transportation

One of the challenges in construction project while implementing the IBS system are

the transportation issue, which include the terms of size of the components, the

standard of the weight limitation, route restriction by certain road, permitting and also

the need of lifting equipment particularly for the large components of the IBS.

Additional lifting is needed for project site which carry out the IBS system, where this

system providing a large components, and it has increase the complexity of lifting the

components to compare with the conventional method. These limitation had given a

huge impact in terms of the schedule of the construction, the design of site and also

the equipment lifting cost of the components (Jabar et al., 2013).

20

Due to the casting of the Industrialised Building System, it was found that the

labour cost was reduced up to 30%. Unfortunately, the transportation of this large

component was subject to the country’s particular road department requirement. And

these limitation should be taken a consideration, and the government should made an

effort towards this barriers in order to smoothen the process of transportation of the

large panels to the required construction sites (Thanoon & Sapuan, 2002).

These prefabricated components were packaged accordingly to the

manufacturing factory methods and style. All of the components was packaged to a

different packaging system, but the transportation method is equally reach the standard

for country road department requirement. The long standard deck used to carry the IBS

components allowing the manufacturers to maximize their transport volumes and

minimize the cost. Due to the standard requirement of the road department, it is nearly

impossible to sustain the cost in transportation, due to the limitation of size and weight

for the components. Because of the differences in the level of completion for each of

the components, thus the shipping limitation would also vary. Size and load restriction

is vary depend with the nations law particular for certain countries the limitation

towards the size and weight of the components construction project, due to the large

components was transported to the specific required site as a preassembled units.

Prefabricated components, if to be compared with the conventional method of

construction, was quite a competitive and have a narrow gap of benefits between the

two methods, especially in the terms of effectiveness. This is due to the statistic made

up to nearly 90% of the manufacturing for conventional method was taken place on

site. And the raw materials has also initially developed as the standardized size, which

automatically have eliminated all the factors related to the shipping and transportation

(Rippon, 2011).

There are several of limitation for the construction which implement the IBS

system, this is due to the large volume of components that is being carried to the site.

Not to mention for the site project from the northern and east region, it is specifically

hard because most of the manufacturer of IBS are located in west peninsular Malaysia

(Jabar et al., 2013). Like in the case of “Government School Building Project”, which

is the secondary school located in Penang, the contractor have to use Jalan Sultan

Azlan Shah, were it is consider as the busiest road in Penang. They transport the IBS

components from the factory to the project site, and they also need to make a U turn

before them arriving the site. This road connects Georgetown and Penang Bridge, also

21

allocating few housing scheme along the road. And also the three main landmark,

University Sains Malaysia, Army Camp and Youth Sport Facilities contributes more

to the congestion of the road (Mohd Nawi et al., 2017).

Great planning is important and are needed in order to estimate the delivery

time of the IBS components to ensure it is in-line with the schedule set by the

contractors and also the preparations set at the site. Transportation and installation will

also get affected by the weather condition in that particular area. So this can be the

major cause of the delay while implementing the IBS system. (Jabar et al., 2013).

Nowadays, construction project transportation and delivery need a high precision of

technique, skills which will contribute to a productive surrounding and good

environment in construction industry. The IBS construction approach has enable the

construction industry to experience a more controlled environment which the material

and components change from on-site to off-site manufacturing products. The issues of

successful delivery of IBS projects would be a critical and tough challenge in

smoothening the IBS projects (Mohammad et al., 2014).

Generally speaking, inadequate access of the IBS components into the

construction site also have risen up as a critical issue. When the storage space of

prefabrication factory is insufficient, it refers to the ability of the other foreign place

which could be the other access of the components.

2.8.2 Coordination in IBS project

It is compulsory to understand the extensive coordination required by the construction

operations, such as the coordination of the design building, transportation, tracking

and also the installation in ensuring the successful installation of the structure. While

the coordination for construction operation are consider as crucial step, it is important

for the communication among the parties involved to be effective. This include the

distribution of the information in related to the decision making among the parties

involved, designs, transportation requirements and also the schedules of the

construction projects. Every construction projects will have a several of participants

from different level, so it requires the integration from different people, such as from

regular meeting. Contractors need to consider in enhancing the cooperation between

the manufacturer and also the suppliers which are currently weak, which the IBS is

22

known as requiring the integrating and cooperation from the parties involved in that

particular projects (Jabar et al., 2013).

Lack of knowledge and experience for the correct technique and methods in

jointing the IBS components, and problem of defective joints work of the components

in the construction projects is also a major problem in the construction site (Kasim et

al., 2015). By implementing the IBS system, it will requires a high precision in

construction, so professionals and contractors are vital during the coordination of the

IBS components. Many of the construction players are not fully aware or familiar with

the coordination and the standardization related to design and assembling of the

components (Sashitharan et al., 2014).

The contractors must realise that they hold a huge responsibilities concerning

the understanding of the coordination of the complex interfacing issues, and the failure

to solve this will reduce the quality of the end product. The IBS usage also faced

problem in the difficulties on applying changes while in the middle of the site work

and after the completion of the project (Jabar et al., 2013). In order for the process to

run smoothly and successfully, the authority would have to consider the early

integration between the specialist, contractors, manufacturers, suppliers and others

participate to deliberate the design process at the earlier stage. By integrating form

several of participant, this will improve and increase the change of obtaining a better

quality of product, within the schedule and also cost effective (Mohd Nawi et al.,

2017).

2.8.3 Monetary Issues

One of the advantages and benefits that IBS system offer to the construction players

are overall cheaper in construction to be compared with the conventional method.

While some of the professionals and contractors do believe that this methods can help

them in using less initial capital, through a past research done by Haron in 2005,

several past experiences has been claimed by some of the professionals in construction

industry where the IBS system are more expensive than the traditional method. This is

due to the fierce competition by builders which are still taking the conventional method

as the prior system in the construction industry (Sashitharan et al., 2014). The

readiness of the construction player in changing the method of their construction step

to IBS are still way too far to achieve. This is due to the hurdle of the conventional

23

buyers, which prefer on buying houses built with brick and mortar (Mydin et al.,

2014b).

At the initial stage, requirement on a huge investment in order to set up the

plant, supplying the machinery and equipment, considering the engineering section

that having problems with interfaces and also the transportations of the huge volume

of IBS components. Also, the maintenance of the machinery during the construction

period also need to be consider (Jabar et al., 2013). Statistic shown that a decline in

the demand of the building market for the large housing projects that need the IBS

components in greater volume especially in developed countries, have directly

impacted the need on the IBS implementation, where the mass production resulting in

the reduction of the cost in the project. (Sashitharan et al., 2014).

Contractors and other construction participates realize, by adopting and

implementing the IBS system in the project, will need them to sustained the budget,

allocated time for human resources in the organizations and also the compulsory

requirement of the special equipment and machinery that proves to be the major

obstacles that hinders work in IBS-based projects (Sashitharan et al., 2014). The small

number of manufacturers of IBS components in Malaysia also led to a huge capital of

cost in construction projects (Mydin et al., 2014b).

Lack of integration among the project team also incurred the additional cost in

the construction project, due to the redundant of redesign the IBS components. The

early opinion on pre-caster, designer and contractor should be consider from the initial

stage, because this will endure the successful of the IBS method in construction project

(Jabar et al., 2013).

2.8.4 Non Effective Communication between Parties

Delays issues seems to be very critical to discuss because it involved many factors that

will affect the project completion. Deficiency in management, collaboration,

communication in implementing the IBS system become the overall factors. Poor

integration and communication between the stakeholders at the design stage, where it

include a variety of procurement stage which has contribute to integrating people. The

procurement process is complicated because it required of many stages, and so the

implementation of the IBS system needs an expertise and having the attitude of

cooperating with others, and also maintaining a good relationship between the

24

participants to ensure the main objectives were able to be achieved. Lack of

preparation in the construction procedure can easily be solve by the two-way

communication (Mohd Nasir et al., 2016).

Poor guideline, unclear instruction and information, incorrect information

about the standardization of the IBS components have influence the policies of the

construction companies. The unclear information will affect the construction

professionals due to the misinterpretation of the data and information, and this will

affect the authorities in terms of project approval (Sashitharan et al., 2014). Repetitive

in design and drawing are surely a time wasting, and these problem caused a higher

expenses and extra time in completing the project. And so, it is important to take a

serious action towards the interconnected of communication between parties involved

in the project (Mohd Nasir et al., 2016).

Conflict among project team affected the progress of the project and has led to

the delay during the construction stages. Failure in establish the transparent discussion

and making a right decision also resulting for a poor quality of end product. Weakness

in the project team in construction industry were due to the lack of attention from the

upper management, deficiency of information, authority from different level in the

organization and the lack of coordination between the team member causing the delay

in the project happen (Mohd Nasir et al., 2016).

2.8.5 On-Site Construction Process

Construction industry are well known as the labour-intensive industry, and for

construction project that adopting the IBS system, it is well know that this method

offering the minimal number of labour in the construction sites. But the requirement

for the skilled labours in order to perform on-site work like installation and assembling

the IBS components into a structure is needed. This explain the minimal usage of

workers because they only responsible in engaging the installation of the IBS

components. Unlike the traditional method, where requirement of the labour work is

higher than in the IBS method, the skilled labour are needed for the installation of the

components and it involves the usage of heavy machinery and specialize equipment

likes crane at the construction sites (Mydin et al., 2014b).

Not enough of skilled labour to manage the components of IBS will surely led

to the delay of the construction project (Mydin et al., 2014b). Lack of the skilled labour

25

and the minimal opportunity of the training scheme are the major hurdle on adopting

the IBS system in construction industry. Generally the syllabus for the IBS design

process for higher level of learning are still very limited in Malaysia, and so far, there

are still no code in IBS project among the consultant (Mohd Nawi et al., 2013).