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Aim of Study: This study has focused on identifying the issues related to budget overrun faced by construction industry. Need of Study: Construction industry is very significant in contributing socio-economic growth of a country. Hence, Malaysian government has allocated huge amounts of money for construction development in recent years. Unfortu...

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... The tender sum is more likely to equate with the approved budget estimate  There is less possibility of addendum in bills of quantities or re-budgeting being required  budget-effectiveness and a value-for-money design are more likely to be achieved  A balanced distribution of expenditure is likely to produce a more rational design  The amount of pre-tender analysis by the architect and quantity surveyor should enable more decision to be taken earlier, resulting in a smoother running of the project on site  Budget planning provides a sound basis for comparing different projects Budget planning process focused (a) establishment of a realistic first estimate, (b) plan showing how this estimates should be spent among the various parts or elements of a project, and (c) monitoring process to ensure that the actual design details for the various elements can be constructed within the cost plan. Figure 1 shows the stepwise approach for budget process. Budget control is team endeavour and the effectiveness of cost control depends on how well the basic project management practices are implemented on the project [7]. ...

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... Therefore, all parties are accountable for project success or failure. Each of them is accountable for the different interrelated tasks to reach a full-scale project [28]. Therefore, all parties are responsible for the cost overrun issue in a construction project. ...
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... In the first quarter of 2018, construction work of RM 37.1 billion was done in Malaysia, indicating the contribution of the construction industry in the country's GDP [45]. However, still, the construction industry in Malaysia is facing cost overrun [46,47], where labour related cost is one of the most critical factors [48]. A significant relationship exists between labour wages, inflation and the labour productivity in Malaysia, where the inflation rate possesses a negative impact, hence showing its importance in short and long duration construction projects [49]. ...
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... The essential resources having a significant impact on construction projects are money, manpower, material and machinery. Therefore, assessing the impact of resources prices which influences the budget is significant in construction projects [10][11][12][13][14][15][16][17]. ...
... The major distress of cost overrun is the price increase of construction materials which occurred due to the inflation rate [25][26][27][28]. The deviation between the initial and final project budget can be occurred in between 5% -10% [12,23,29,30]. ...
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... The researchers found issues such as shoddy workmanship (e.g. Jahanshahi & Brem, 2017;Endut et al., 2009;Memon et al., 2012;Memon & Rahman, 2014), weak scheduling (e.g., Zin et al. 2008;Elias & Ismail, 2012), poor procurement process (e.g., Takim & Adnan, 2008;Jaafar & Radzi, 2013;Chong & Preece, 2014), weak risk management analysis (e.g., Yusuman et al., 2008;Adnan et al., 2008;Abdul-Rahman, 2016) among the key reasons for failures to occur. ...
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The research was conducted with the aim of examining the role of project management knowledge assets across different stages of a construction project's success. Using a quantitative research method, primary data were compiled from 370 sample construction firms and analysed using the SEM-PLS analytical technique. The result showed that in order to effectively manage construction projects, the construction firm needs to possess strategic knowledge assets. It was identified that relevant project management assets enhanced the success achieved at every stage of a construction project. Successful construction companies are those which are able to recognise that capturing project management knowledge is important to their competitive advantage. Possessing project management knowledge is vital to effective administration of construction projects, with continuous feedback, alignment of knowledge in the project lifecycle and knowledge sharing among the project team members, being critical for enhancing the success of projects.
... budget increase, cost increase, or cost growth (Love et. al. 2013). In Malaysia, various researchers have investigated time and cost performance issues. Memon et al (2011a) conducted a case study on 30 MARA (Majlis Amanah Rakyat) large projects and found that all projects has time overrun at an average of 23.74% of the contracted time period. While Memon et. al. (2014) through a survey in southern region of Penisular Malaysia found that for large projects, amount of cost overrun ranges from 5-10% of the estimated cost while in small projects, it was found as 10- 15% of estimated cost. Another study conducted by Endut et. al. (2009) in investigation of public and private sector revealed that, out of 30 ...
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