Al-Jibouri, S. (2002) International Journal of Project Management Vol.

20: 271277

[Company name][Company address]

ABSTRACT

The identification of key factors for construction project success enables appropriate allocation of limited
resources. Most of the related past work only identified critical success factors according to the project
objectives of money, machinery, manpower and material. Besides that, schedule and quality are also considered
in determining the success of a project. The analytical hierarchy process is adopted to determine the relative
importance of success related factors. A hierarchical model for the construction project success is presented.
Twenty related success factors are considered. A questionnaire was developed to facilitate systematic data
collection in this study. Experts with an overall experience in the construction industry were invited to
participate in the survey. Critical success factors addressing cost performance, time performance, quality
performance and overall project success are identified. Some pertinent findings of the study are discussed.
Comparisons with findings of previous studies are also presented using mapping method.

INTRODUCTION

Background

Construction industry plays a vital role in development of a nation. Besides that, it provides a progressive
economic growth of a country. Construction is the foundation of development planned as it provides the
necessity of the citizens in a country and helps in improving the quality of life by meeting the demand of basic
socio-economic necessity such as road, factory, accommodations and hospital. Despite of global economic
fluctuations (rise and downfall), construction industry contributes significantly to Gross Domestic Product
(GDP) of Malaysias economy. According to Construction Industry Development Board of Malaysia, (CIDB)
the construction sector has been consistently contributing an average of 3.8% of GDP over the last thirty years.
This is evidence of rapid growing and the improvement made by this nation significantly.
Hence, it is very important to achieve successful construction projects. The success of any construction project
highly depends on resource utilization. Managing resources in the framework of civil engineering construction
sector is an extremely complex task. Construction projects require a high degree of organization and planning to
progress smoothly and profitably. Labor should be on-site at the proper times, and coordinated with necessary
materials. Particularly for projects that require materials from different suppliers, the costs of accidentally
omitting something can be huge. However, construction industry is observed facing a lot of challenges in
achieving effective resource management which has resulted significantly in delay to complete a project on
time, the expenditure exceeding the budget allocated and too dependent on workers. The poor resource
management in construction projects is caused by various factors which are very important to uncover in order
to improve project performance.

Problem Statement

Achieving successful completion of construction projects within the resources is fundamental criteria of any
project. Although there are various methods and software packages developed for resources management,
however, most of construction project fails in achieving completion on time, cost and quality. In Malaysia, not
many research works has assessed impact of resource related factors on project time, cost and quality. Hence,
this study focuses on studying the effects of various resource related factors on project time overrun, cost
overrun and quality.

Aim and Objective

The aim of this study is to investigate the risk of construction resource related factors in project success. To
achieve this aim, following objectives were set:
i

Identifying resource related factors in project success.

ii

Investigating the frequency of occurrence and severity of the factors.

iii

Determining the critical factors in project success.

Scope of study

This study involves quantitative mode of research using structured questionnaire survey. Respondent groups
involved in data collection are client, contractor and consultant firms involved in construction projects at Johor
state of Peninsular Malaysia.
2.1 ISSUES AND CHALLENGES IN CONSTRUCTION INDUSTRY IN MALAYSIA

Despite its growth and healthy contribution to the GDP, Malaysian construction industry is under constant
pressure to improve its performance. The Malaysian construction industry has been characterised as inefficient
and in need of structural and cultural reform. The projects today are far more complicated than ever before.

They involve larger capital investments, embraces several disciplines, widely dispersed project participants,
tighter schedules and stringent quality standards. The changing construction environment is also influenced by
factors other than the project management requirements. The examples of such factors are:

The economical forces; this factor may significantly affect the client organisation and subsequently can
impact the initial objectives of their projects. The construction growth rates in Malaysia fluctuates
between extremities that varies from as high as 21.1 percent in 1995 to as low as -24 percent in 1998.
Since the 1990s, the contribution of the construction sector to the GDP also fluctuated albeit at a more
stable rate varying from a high of 4.8 percent in 1997 to an estimated low of 2.7 percent in 2005 (CIDB,
2008). This shows that the demand for construction is highly sensitive to the developments in other
sectors of the economy. This is worsen by the decline in Foreign Direct Investment (FDI) for 18% in
Q42009 compared to the same period last year and recent government policy to reduce public spending.
Moreover, the property market is yet to recover from global recession with soft demand recorded in

Grade A office and high-end condominium in Klang Valley hot spots.

With high demand for construction activities in previous years, the industry has attracted a huge
number of foreign workers into this country to take up employment on site as unskilled labour doing
manual jobs. According to Construction Industry Development Board (CIDB) Malaysia, 69% (552,000)
out of total 800,000 of registered workers as at June 2007 is foreign workers. It is a huge number which
distress the stability and growth of domestic economy and created social problems. The locals are
reluctant to join the industry due to the low salary scheme being offered to foreign workers and wrong
image projected by the industry. Therefore, government put in place measures to encourage industries to
move-up the value chain and, where possible, to automate and mechanise their operations and in areas
where automation and mechanisation was not possible, efforts were being made to replace foreign

workers with skilled workforce.

Increases in project complexity; project complexity has increased due to extent of scope and
fragmented parties around the world having to communicate with one another for efficient project
execution. The complexity of the projects is reflected by the large number of specialists who contribute

to the decision-making process.

The need to achieve faster results with the given resources; this factor places severe time pressures on
the entire project team. With high demand for construction activities in previous years, the industry has
attracted a huge number of foreign workers into this country to take up employment on site as
unskilled labour doing manual jobs. According to Construction Industry Development Board (CIDB)

Malaysia, 69% (552,000) out of total 800,000 of registered workers as at June 2007 is foreign workers.
It is a huge number which distress the stability and growth of domestic economy and created social
problems. The locals are reluctant to join the industry due to the low salary scheme being offered to
foreign workers and wrong image projected by the industry. Therefore, government put in place
measures to encourage industries to move-up the value chain and, where possible, to automate and
mechanise their operations and in areas where automation and mechanisation was not possible, efforts

were being made to replace foreign workers with skilled workforce.

Increases in project complexity; project complexity has increased due to extent of scope and
fragmented parties around the world having to communicate with one another for efficient project
execution. The complexity of the projects is reflected by the large number of specialists who contribute

to the decision-making process.

The need to achieve faster results with the given resources; this factor places severe time pressures on

the entire project team.

Rapid changes to project scope to expand benefits; some scope changes take place very rapidly before

even realising the benefits of the changes.

New procurement practices; the emergence of new procurement practices changes the way the team
members are interrelated. For example, procurement schemes such as Private Finance Initiative (PFI)
and partnering have impacted construction project management. Such schemes bring the government
and the private sector firms together in large-scale infrastructure projects in which very high quality

standards, tight schedules and cost targets are aimed at. With the governments greater involvement in
Rapid changes to project scope to expand benefits; some scope changes take place very rapidly before

even realising the benefits of the changes.

New procurement practices; the emergence of new procurement practices changes the way the team
members are interrelated. For example, procurement schemes such as Private Finance Initiative (PFI)
and partnering have impacted construction project management. Such schemes bring the government
and the private sector firms together in large-scale infrastructure projects in which very high quality
standards, tight schedules and cost targets are aimed at. With the governments greater involvement in
standardising contractual procedures for PFI schemes, the commitments of all parties have become

clearer and more visible.

Client sophistication; this has become a major driver for productivity improvements in
construction. Clients demand higher quality end products and services at lower price. This has
created a buyers market whereby firms compete for projects at lower margins and hence demand better
project management practices to enforce tighter control on the projects activities.

Globalisation of the marketplace; many industries are facing a lot of pressure due to this factor. Tariff
barriers are virtually falling and labour has become more mobile. Further, due to productivity
improvements and advantages in economies of scale, some foreign firms are capable of competing with
local firms on price, quality and delivery. Thus, the involvement of Malaysian contractors in overseas
projects particularly on Middle East, Africa and India is significant. This is due to declining in Foreign
Direct Investment (FDI) to Malaysia and the government policy to reduce government spending on
mega projects. However, to venture to the overseas market, the Malaysian firms must be able to compete
with others and become a total solution provider to the clients. They must also capable to offer
competitive price. Thus, it requires immense knowledge, skills and expertise in management of project.
One of the recommendations is to pile up knowledge on the latest innovation in construction such in IBS

and automated and mechanised construction.

As in conventional construction which is a common practice in Malaysia, reinforced concrete frame and
brick, beam, column, wall and roof are cast in-situ using timber framework while steel reinforcement is
fabricated offsite. This method is labour-intensive involving formwork fabrication, steel bending and
concreting. It requires many wet trades on site such as skilled carpenters, plasterers and brick
workers. The process can be hampered by quality issues, unfavourable site conditions, skilled labour
shortage and bad weather conditions.

2.2 PROJECT SUCCESS INDICATORS

Defining project success seems simple where it simply means by delivering on time and on budget. A standout
project manager, however, is one that takes the time to partner with the customer, understand the business

drivers, and care enough to ensure that the project they lead delivers the business results for which it was
designed. That is project success.
Delivering a successful project starts with taking a step back and understanding business drivers: the problem or
opportunity that precipitated the project. Key performance indicators (KPIs) (sometimes called key success
indicators, or KSIs) are a common term for criteria used to measure the benefits of a project. The KPIs are the
reason that the project was launched, and they should be foremost in your mind when you are scoping the
project and setting project goals. These project management indicators are:

Established by the customer at the beginning of the project and listed in order of priority.

Directly related to and supported by business goals.

Able to provide the basis for critical decision-making throughout the project.

The basis on which the product will be accepted by the customer at the end of the project.

Measurable.

2.3

FACTORS LEADING TO SUCCESSFUL PROJECTS

Having a talented project manager is the first step to actual project success, but there are other important factors
that contribute largely to a projects outcome. It takes careful planning, attention to detail and effective
communication to make a project succeed. With vigilant management and a strong project closing, a company
can consistently reach project success. (Full disclosure, Ben Prendergast is the CEO of Copper Project
Management Software)
2.3.1

Smart Planning

Comprehensive planning sets up a project for success from the start. All stakeholders should be on board during
the planning process and always know in which direction the project is going to go. Planning can help the team
to meet deadlines and stay organized. Good planning not only keeps the project team focused and on track, but
also keeps stakeholders aware of project progress.

There are many benefits to smart planning. This first step in the project process allows for a reliable and
realistic time-scale to be created. Assuring accurate time for cost estimates to be produced and for clear
documentation of milestones and deliverables will make things much easier as the project progresses. A
proficient plan details all resource requirements and doubles as a warning system. If task slippage is at risk, then
a warning system will provide clear visibility of what to expect.
2.3.1.1 Smarter Planning with Project Management Software.
Use a tool that offers a full drag and drop timeline so that you can quickly and effectively build a project plan
and establish an accurate end date. Use previously completed projects as templates for your future projects. In
this way not only can you avoid redundancies associated with creating a new project from scratch each time, but
the more often you reuse a template project the closer youll be to accurate timelines and budget estimates

2.3.2

Smart People

Without the right team in place, any strategy and plan has the potential of completely falling apart. Because of
this, the core project staff, expert resources, suppliers and all stakeholders should be part of the team dynamic.
All of those involved must have commitment to the group, share similar visions for the projects and strive for
overall success.
Project managers can face serious trouble if inadequacy is present within the team. Inept leadership or an outof-sync team can send a project towards failure. It is important to assign the right people to each aspect of the
project and make sure that they are working well together. Additionally, the entire team should be completely
informed and involved in order to have the most successful outcome, which means that communication has to
be on par.
2.3.2.1 Smarter Resourcing with Project Management Software
Use a software tool to get everyone online and using a central repository of information. Tools like Copper
Project not only allow you to manage the To-Dos and Project plans, but will also allow you to set the
availability of your resources, and then book their time on specific tasks/projects. Once theyve logged their
time, you have a powerful system that not only automates time-sheets/invoicing, but stops your project
processes falling apart when your staff move on. Aside from using a tool that allows dragable timelines, also

find one that allows you to use previous projects as templates for establishing your new timeline. Not only will
you improve your processes over time (becoming more accurate with your estimates and setting client
expectations accordingly), but you also improve communications between all your project participants.
2.3.3

Open Communication

Looking closely at details and listening to outside sources of information is vital to the success of a project.
Keeping open communication within the team is absolutely essential. When working under a specific timetable,
it is important that the team remains well-informed. If a problem arises on one part of a project, it can
negatively impact other parts as well. Communication is the best way to prevent problems from occurring.
Communication should also be focused internally within the organization. Keeping an organizational history of
major projects will give convenient access to improved policies and business processes. If this isnt done, then a
team may repeat mistakes that have already occurred. Listening to stakeholders and paying attention is a very
important ingredient for success.
Good communication also includes knowing when to say no. A project team should never promise anything
they know they cant deliver. Saying no in the beginning could save an overabundance of unnecessary problems
later. Always be honest about what your team can do and when it can be done by.
2.3.4

Careful Risk Management

Project managers know that things rarely go off exactly as planned. During the planning process, it is vital to
produce a risk log with an action plan for the risks that the project could face. Make sure all key stakeholders
are aware of your risk log and know where they can find it. If something happens, then the team can quickly
resolve the issue with the management plan that has already been set in place. This will give the team
confidence when facing project risks and help the clients feel comfortable with the projects progression.
Having a central online database of project information is vital to ensure you dont lose crucial project
momentum during the project, but also in the event of losing key participants you can quickly get your new
team members up to speed.
2.3.5

Strong Project Closure

If a project does not have strong closure, then it has the potential to continue to consume resources. The project
team must be firm and agree with the customer that all critical success factors have been met. Confirmation of

the project delivery, testing, and release must be agreed upon and signed off. Satisfaction surveys are good
forms of documentation to log and file for future reference and valuable information for use in the future.
It is the project managers job to ensure that everything runs smoothly on a project, but having a great project
manager doesnt guarantee a successful project outcome. The entire team paying attention to key factors is what
will help lead the project to true success. This success will then lead to proactive, organized project plans and an
increase in quality of all future projects.

2.3.6 Effective Contracting

A general contractor coordinates all the sub-contractors in a construction project. Carpenters, metalworkers,
plumbers, electricians, roofers, dry-wall installers, and finish carpenters all have jobs to do. If there is a gap
between when one stage is completed and the next begins, it costs everyone money. Conversely, if different jobs
overlap in the same place, this causes friction and inefficiency. General contractors need to order and supply all
necessary materials and coordinate sub-contractors to be on site at the proper times. The general contractor also
serves as the liaison between the client or owner of the project and the workers. He needs to effectively
communicate with both groups.
2.3.7 Dealing with Regulations
The red tape involved with a large construction project can be overwhelming to someone who is inexperienced
or insufficiently educated in the field. Regulations related to Occupational Safety and Health Administration
(OSHA) require a safe job site, including head, foot, and eye protection, and posting signs near hazards.
Inspectors must conform to all zoning laws. If the contractor fails to adhere to acceptable standards, the job site
can be shut down. Shutdowns can be costly for investors, contractors and workers, especially if the owner is
operating on borrowed money that requires interest payments and carrying costs.
2.3.8 Quality Control
For many aspects of construction, there are more wrong ways to do something than right ways. An honourable
and intelligent contractor who wants his business to thrive makes a point to find the right way, and hires and
retains workers who share the same philosophy. Cutting corners in the construction business happens, but too
much of this leads to shoddy construction, and hazardous conditions for workers and the future residents of the

building. Foundations, walls, roofs, and technical infrastructure, such as plumbing and electrical systems, all
require minimum standards for both materials and workmanship that must be met to create a building that is
durable, safe, and in conformity with current construction codes.

Problem Identification

Set Objective & Scope

Literature Review

Develop Questions

Data Collection

Result & Discussion

Writing

Preliminary Literature
Review

DATA COLLECTION AND ANALYSIS

Data collection will be carried out through a structured questionnaire survey amongst the consultant and
contractors involved in construction projects who are registered in top 3 classes

Gathered data will be analyzed statistically to rank the methods and software packages of time
management and control to identify their level of effectiveness.

It involves the frequency calculation on significance level for each factor using statistical software
package (SPSS).

CONCLUSION
The results gathered from this study will be discussed and based on the results, conclusions and
recommendations will be drawn. The studies will focus on summarizing the results and illustrating the
recommendation to improve the time overrun in construction project.