Cost performance of building refurbishment works: the case of Malaysia

Azlan Shah Ali · Nur Farhana Azmi · Timothy Kurannen Baaki

28 citations0/0 files storedInternational Journal of Building Pathology and Adaptation

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Construction Project Management and Performance Life Cycle Costing Analysis Value Engineering and Management

Abstract

Purpose Refurbishment is inherently more sustainable than building new. However, planned and actual costs of refurbishment projects are bound to vary due to the complex nature of most such projects. This can affect the performance of refurbishment work. The purpose of this paper is to examine factors responsible for elemental cost variations between the actual and planned costs of refurbishment projects. The study also examines factors that contribute to differences in actual and planned cost between refurbishment and new build projects. Design/methodology/approach A quantitative approach was adopted for this study. A literature review identified factors responsible for elemental cost variations in refurbishment projects, as well as factors responsible for differences in actual and planned cost of new build and refurbishment projects. This was followed by a questionnaire survey of refurbishment projects across Malaysia. A total of 55 respondents provided input through a questionnaire survey to identify these factors. Findings This study demonstrates that procurement strategy (PS), inappropriate contractors (IC), poor project management (PPM), availability of funding, materials and equipment, and force majeure (FM) significantly affect refurbishment cost performance. Electrical installations, firefighting equipment, and painting were the building elements most affected by cost variations. A regression model for refurbishment cost prediction indicates that PS, IC, PPM, availability of funding, materials and equipment, and FM were significant predictors of building refurbishment cost performance. Originality/value This paper provides insight into the major factors affecting elemental cost variation of refurbishment works, as well as building elements most affected by cost variations and provides a model for predicting refurbishment cost performance.

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References

1993Research methods for business: A skill building approach 2007Causes and effects of delays in Malaysian construction industry 2003Causes of delay and cost overruns in construction of groundwater projects in a developing countries; Ghana as a case study 2008Cost escalation and schedule delays in road construction projects in Zambia 2003Modelling global risk factors affecting construction cost performance 2005Factors affecting cost performance: evidence from Indian construction projects 2010Cost and time control of construction projects: inhibiting factors and mitigating measures in practice 2002Influence of Project Type and Procurement Method on Rework Costs in Building Construction Projects

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