Factors Affecting Contractors risk attitude from Malaysia construction industry perspective Factors Affecting Contractors risk attitude from Malaysia construction industries perspective
Abstract
Risks always lead to the failure of the contractor to complete projects on time. This situation is caused by many factors. The contractor’s failure to plan, manipulate, perform, monitor, control and take into account all factors and risks involved may not guarantee the success of a project. In order to improve performance in Malaysia construction industries, the introduction of OSH Act 1994 have made all industries in Malaysia to identifying hazards, conducting a risk assessment and controlling those risk and at the same time implementing an integrated system to ensure consistency and better performance of projects in Malaysia industries. A total number of ninety-five (95) risk factors that are dampening and affecting contractor productivity in Malaysia construction industries were revealed by the ranking of the contractor risk attitude factors through SPSS. In the same vein, the risk factors were further classified into six (6) sub-classes depending on their nature and likelihood of occurrence. Such as (Technical risk, Logistical risk, Management risk, Social-political risk, financial risk, and Environmental risk). In order to achieve the proper response rate for this study, in total 250 questionnaires were distributed to the construction industry in Kuantan Malaysia randomly. Of the 250 questionnaires distributed, 234 questionnaires were received with an equal percentage of 93.6%. Conversely, 7 questionnaires were found to be unusable due to missing data or provided the same responses to all the questions. Thus overall, 90.8% of the total questionnaires were usable concluding with an effective sample of 227. Statistical Package for Social Science (SPSS) version 21.0 for MS Window was used to analyse the collected data. The demographic profile of the companies and respondents were analysed with descriptive statistics. This study also focused on the G7 contractors operating in Malaysia construction industry that specialise in building, bridge and road construction project.
References
REFERENCE
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Adeleke, A. Q., Bahaudin, A. Y., Kamaruddeen, A. M., Bamgbade, J. A., Salimon, M. G., Khan, M. W. A., & Sorooshian, S. (2018). The influence of organizational external factors on construction risk management among Nigerian construction companies. Safety and Health at Work, 9(1), 115-124.
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Adeleke, A. Q., Nasidi, Y., & Bamgbade, J. A. (2016). Assessing the Extent of Effective Construction Risk Management in Nigerian Construction Companies. Journal of Advanced Research in Business and Management Studies, 3(1), 1-10.
Adeleke, A. Q., Bahaudin, A. Y., & Kamaruddeen, A. M. (2015). A Partial Least Square Structural Equation Modeling (PLS-SEM) Preliminary Analysis on Organizational Internal and External Factors Influencing Effective Construction Risk Management among Nigerian Construction Industries. Rev. Téc. Ing. Univ. Zulia, 38(143), 143-55.
Ajzen, I., & Fishbein, M. (2000). Attitudes and the attitude-behavior relation: Reasoned and automatic processes. European review of social psychology, 11(1), 1-33.
Ajzen, I., 1993. Attitude theory and the attitude-behavior relation. In: Krebs, D., Schmidt, P. (Eds.), New Directions in Attitude Measurement. Walter de Gruyter, Berlin, New York.
Akintoye, A.S., MacLeod, M.J., 1997. Risk analysis and management in construction. International Journal of Project Management 15 (1), 31– 38.
Alexopoulos, G. S., Reynolds III, MD, C. F., Bruce, M. L., Katz, I. R., Raue, P. J., Mulsant, B. H., ... & PROSPECT Group. (2009). Reducing suicidal ideation and depression in older primary care patients: 24-month outcomes of the PROSPECT study. American Journal of Psychiatry, 166(8), 882-890.
Al-Momani, A. H., (2000), Examining service quality within construction processes, Technovation, Vol. 20, and PP. 643-651.
Al-Tmeemy, S. M. H., Abdul-Rahman, H., & Harun, Z. (2012). Contractors' perception of the use of costs of quality system in Malaysian building construction projects. International Journal of Project Management, 30(7), 827-838.
Anaman, K. A., & Amponsah.C. (2007). Analysis of the causality links between the growth of the construction industry and the growth of the macro economy in Ghana. Construction Management and Economics, 25, 951-961.
Baloi, A.D. PriceModelling global risk factors affecting construction cost performanceInt J Proj Manag, 214 (2003), pp. 261-269
Brockhaus Sr, R. H. (1980). Risk taking propensity of entrepreneurs. Academy of management Journal, 23(3), 509-520.
Cha, E. J., & Ellingwood, B. R. (2012). Risk-averse decision-making for civil infrastructure exposed to low-probability, high-consequence events. Reliability Engineering & System Safety, 104, 27-35.
Chauvin, B., Hermand, D., & Mullet, E. (2007). Risk perception and personality facets. Risk Analysis: An International Journal, 27(1), 171-185.
Chen, J., Chia, N., Kalari, K. R., Yao, J. Z., Novotna, M., Soldan, M. M. P., ... & Weinshenker, B. G. (2016). Multiple sclerosis patients have a distinct gut microbiota compared to healthy controls. Scientific reports, 6, 28484.
Chun, Y., Tsai, C., & Hsu, Y. (2016). Research on the operational performance of ISO 14000 Certified Taiwan’s manufacturers. Asian Journal on Quality, 6(1), 24–34.
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Dikmen, I., Birgonul, M. T., & Han, S. (2007). Using fuzzy risk assessment to rate cost overrun risk in international construction projects. International Journal of Project Management.
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Goh, C. S., & Abdul-Rahman, H. (2013). The identification and management of major risks in the Malaysian construction industry. Journal of Construction in Developing Countries, 18(1), 19-32.
Hamzah, A. (2004). Policy and planning of the tourism industry in Malaysia. In The 6th. ADRF General Meeting.
Hanna, A., Boodai, F., & El Asmar, M. (2013). State of practice of building information modeling in mechanical and electrical construction industries. Journal of Construction Engineering and Management, 139(10), 04013009.
Hwang, B. G., Zhao, X., & Toh, L. P. (2014). Risk management in small construction projects in Singapore: status, barriers and impact. International Journal of Project Management, 32(1), 116-124.
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Huang, T., Kong, C. W., Guo, H., Baldwin, A., & Li, H. (2007). A virtual prototyping system for simulating construction processes. Automation in construction, 16(5), 576-585.
Jaafari, A. (2001). Management of risks, uncertainties and opportunities on projects: time for a fundamental shift. International journal of project management, 19(2), 89-101.
Jaśkowski, P., & Biruk, S. (2011). The Method for Improving Stability of Construction Project Schedules through Buffer Allocation: Statybos vykdymo grafiko stabilumo užtikrinimas paskirstant laiko rezervus. Technological and Economic Development of Economy, 17(3), 429-444.
Kartam, S. (1999). Generic methodology for analyzing delay claims. Journal of construction engineering and management, 125(6), 409-419.
Kim, H. J., & Reinschmidt, K. F. (2011). Market structure and organizational performance of construction organizations. Journal of Management in Engineering, 28(2), 212-220.
Lauriola, M., & Levin, I. P. (2001). Personality traits and risky decision-making in a controlled experimental task: An exploratory study. Personality and individual differences, 31(2), 215-226.
Lee, C. K., Yiu, T. W., & Cheung, S. O. (2016). Selection and use of alternative dispute resolution (ADR) in construction projects—past and future research. International Journal of Project Management, 34(3), 494-507.
Lee, C. K., Yiu, T. W., & Cheung, S. O. (2015). Perceived risks, obligations, and uncertainties: Antecedents of unpaid contractors' intention to suspend works against non-payment. In 8th International Structural Engineering and Construction Conference: Implementing Innovative Ideas in Structural Engineering and Project Management, ISEC 2015. ISEC Press.
Loosemore, M., & McCarthy, C. S. (2008). Perceptions of contractual risk allocation in construction supply chains. Journal of Professional Issues in Engineering Education and Practice, 134(1), 95-105.
Pennings, J. M., & Smidts, A. (2000). Assessing the construct validity of risk attitude. Management Science, 46(10), 1337-1348.
Perera, B. A. K. S., Dhanasinghe, I., & Rameezdeen, R. (2009). Risk management in road construction: the case of Sri Lanka. International Journal of Strategic Property Management, 13(2), 87-102.
Project Management Body of Knowledge (PMBOK) A guide to the project management body of knowledge Project Management Institute, Newtown Square (PA) (2000).
Renuka, S. M., Umarani, C., & Kamal, S. (2014). A review on critical risk factors in the life cycle of construction projects. Journal of Civil Engineering Research, 4(2A), 31-36.
Roshana, S., Batajoo, K. H., Piryani, R. M., & Sharma, M. W. (2012). Basic life support: knowledge and attitude of medical/paramedical professionals. World journal of emergency medicine, 3(2), 141.
Sambasivan, M., & Soon, Y. W. (2007). Causes and effects of delays in Malaysian construction industry. International Journal of project management, 25(5), 517-526.
Sathishkumar, V., Raghunath, P. N., & Suguna, K. (2015). Critical Factors Influencing to Management Risk in Construction Projects. The International Journal Of Engineering And Science (IJES) Volume, 4, 37-46.
Shirodkar, V., & Konara, P. (2017). Institutional distance and foreign subsidiary performance in emerging markets: Moderating effects of ownership strategy and host-country experience. Management International Review, 57(2), 179-207.
SS, M. S. (2017). Risk Management and Effect of Contractors Risk Attitude on Competition in Construction. Imperial Journal of Interdisciplinary Research, 3(8).
Tah, J. H. M., & Carr, V. (2001). Knowledge-based approach to construction project risk management. Journal of computing in civil engineering, 15(3), 170-177.
Takim, R., & Akintoye, A. (2005, November). Process improvement of construction projects in Malaysia: analysis case studies. In Proceedings of the 2nd Scottish Conference for postgraduate researchers of Built and Natural Environment (PRoBE) (pp. 16-17).
Toh, T. C., Ting, C., Ali, K. N., Aliagha, G. U., & Munir, O. (2012). Critical cost factors of building construction projects in Malaysia. Procedia-Social and Behavioural Sciences, 57, 360-367.
Walker, D. H., & Vines, M. W. (2000). Australian multi-unit residential project construction time performance factors. Engineering, Construction and Architectural Management, 7(3), 278-284.
Wang, J., & Yuan, H. (2011). Factors affecting contractors' risk attitudes in construction projects: a Case study from China. International Journal of Project Management, 29(2), 209-219.
Wiguna, I. P. A., & Scott, S. (2005, September). Nature of the critical risk factors affecting project performance in Indonesian building contracts. In 21st Annual ARCOM Conference (pp. 225-235).
Yi, H., Cho, Y. J., Won, S., Lee, J. E., Jin Yu, H., Kim, S., ... & Chun, J. (2011). Duplex-specific nuclease efficiently removes rRNA for prokaryotic RNA-seq. Nucleic acids research, 39(20), e140-e140.
Zou, P. X., & Zhang, G. (2009). Managing risks in construction projects: life cycle and stakeholder perspectives. International Journal of Construction Management, 9(1), 61-77.
Abdelhamid, T.S. and Everett, J.G. (2000) Identifying of Root Causes of Construction Accident. Journal of Construction Engineering and Management, ASCE, January/February 2000, pp.52 – 60.
Abidin, N. Z. (2010). Investigating the awareness and application of sustainable construction concept by Malaysian developers. Habitat International, 34(4), 421-426.
Adeleke, A. Q., Bahaudin, A. Y., Kamaruddeen, A. M., Bamgbade, J. A., Salimon, M. G., Khan, M. W. A., & Sorooshian, S. (2018). The influence of organizational external factors on construction risk management among Nigerian construction companies. Safety and Health at Work, 9(1), 115-124.
Adeleke, A. Q., Bahaudin, A. Y., & Kamaruddeen, A. M. (2017). Organizational internal factors and construction risk management among Nigerian construction companies. Global Business Review, 0972150916677460.
Adeleke, A. Q., Bahaudin, A. Y., & Kamaruddeen, A. M. (2016). Preliminary analysis of organizational factors influencing effective construction risk management: A case study of Nigerian construction companies. Sains Humanika, 8(2).
Adeleke, A. Q., Nasidi, Y., & Bamgbade, J. A. (2016). Assessing the Extent of Effective Construction Risk Management in Nigerian Construction Companies. Journal of Advanced Research in Business and Management Studies, 3(1), 1-10.
Adeleke, A. Q., Bahaudin, A. Y., & Kamaruddeen, A. M. (2015). A Partial Least Square Structural Equation Modeling (PLS-SEM) Preliminary Analysis on Organizational Internal and External Factors Influencing Effective Construction Risk Management among Nigerian Construction Industries. Rev. Téc. Ing. Univ. Zulia, 38(143), 143-55.
Ajzen, I., & Fishbein, M. (2000). Attitudes and the attitude-behavior relation: Reasoned and automatic processes. European review of social psychology, 11(1), 1-33.
Ajzen, I., 1993. Attitude theory and the attitude-behavior relation. In: Krebs, D., Schmidt, P. (Eds.), New Directions in Attitude Measurement. Walter de Gruyter, Berlin, New York.
Akintoye, A.S., MacLeod, M.J., 1997. Risk analysis and management in construction. International Journal of Project Management 15 (1), 31– 38.
Alexopoulos, G. S., Reynolds III, MD, C. F., Bruce, M. L., Katz, I. R., Raue, P. J., Mulsant, B. H., ... & PROSPECT Group. (2009). Reducing suicidal ideation and depression in older primary care patients: 24-month outcomes of the PROSPECT study. American Journal of Psychiatry, 166(8), 882-890.
Al-Momani, A. H., (2000), Examining service quality within construction processes, Technovation, Vol. 20, and PP. 643-651.
Al-Tmeemy, S. M. H., Abdul-Rahman, H., & Harun, Z. (2012). Contractors' perception of the use of costs of quality system in Malaysian building construction projects. International Journal of Project Management, 30(7), 827-838.
Anaman, K. A., & Amponsah.C. (2007). Analysis of the causality links between the growth of the construction industry and the growth of the macro economy in Ghana. Construction Management and Economics, 25, 951-961.
Baloi, A.D. PriceModelling global risk factors affecting construction cost performanceInt J Proj Manag, 214 (2003), pp. 261-269
Brockhaus Sr, R. H. (1980). Risk taking propensity of entrepreneurs. Academy of management Journal, 23(3), 509-520.
Cha, E. J., & Ellingwood, B. R. (2012). Risk-averse decision-making for civil infrastructure exposed to low-probability, high-consequence events. Reliability Engineering & System Safety, 104, 27-35.
Chauvin, B., Hermand, D., & Mullet, E. (2007). Risk perception and personality facets. Risk Analysis: An International Journal, 27(1), 171-185.
Chen, J., Chia, N., Kalari, K. R., Yao, J. Z., Novotna, M., Soldan, M. M. P., ... & Weinshenker, B. G. (2016). Multiple sclerosis patients have a distinct gut microbiota compared to healthy controls. Scientific reports, 6, 28484.
Chun, Y., Tsai, C., & Hsu, Y. (2016). Research on the operational performance of ISO 14000 Certified Taiwan’s manufacturers. Asian Journal on Quality, 6(1), 24–34.
Culp, R. W., McGuigan, F. X., Turner, M. A., Lichtman, D. M., Osterman, A. L., & McCarroll, H. R. (1993). Proximal row carpectomy: a multicenter study. The Journal of hand surgery, 18(1), 19-25.
Dikmen, I., Birgonul, M. T., & Han, S. (2007). Using fuzzy risk assessment to rate cost overrun risk in international construction projects. International Journal of Project Management.
El-Sayegh, S. M. (2008). Risk assessment and allocation in the UAE construction industry. International journal of project management, 26(4), 431-438.
Enshassi, A., Mohamed, S., & Abu Mosa, J. (2008). Risk management in building projects in Palestine: Contractors’ perspective. Risk management in building projects in Palestine: Contractors’ perspective, 13(1).
Goh, C. S., & Abdul-Rahman, H. (2013). The identification and management of major risks in the Malaysian construction industry. Journal of Construction in Developing Countries, 18(1), 19-32.
Hamzah, A. (2004). Policy and planning of the tourism industry in Malaysia. In The 6th. ADRF General Meeting.
Hanna, A., Boodai, F., & El Asmar, M. (2013). State of practice of building information modeling in mechanical and electrical construction industries. Journal of Construction Engineering and Management, 139(10), 04013009.
Hwang, B. G., Zhao, X., & Toh, L. P. (2014). Risk management in small construction projects in Singapore: status, barriers and impact. International Journal of Project Management, 32(1), 116-124.
Hillson, D. & Murray-Webster, R. (2007). Understanding and Managing Risk Attitude. Burlington, USA: Gower.
Hlaing, N. N., Singh, D., Tiong, R. L. K., & Ehrlich, M. (2008). Perceptions of Singapore construction contractors on construction risk identification. Journal of Financial Management of Property and Construction, 13(2), 85-95.
Huang, T., Kong, C. W., Guo, H., Baldwin, A., & Li, H. (2007). A virtual prototyping system for simulating construction processes. Automation in construction, 16(5), 576-585.
Jaafari, A. (2001). Management of risks, uncertainties and opportunities on projects: time for a fundamental shift. International journal of project management, 19(2), 89-101.
Jaśkowski, P., & Biruk, S. (2011). The Method for Improving Stability of Construction Project Schedules through Buffer Allocation: Statybos vykdymo grafiko stabilumo užtikrinimas paskirstant laiko rezervus. Technological and Economic Development of Economy, 17(3), 429-444.
Kartam, S. (1999). Generic methodology for analyzing delay claims. Journal of construction engineering and management, 125(6), 409-419.
Kim, H. J., & Reinschmidt, K. F. (2011). Market structure and organizational performance of construction organizations. Journal of Management in Engineering, 28(2), 212-220.
Lauriola, M., & Levin, I. P. (2001). Personality traits and risky decision-making in a controlled experimental task: An exploratory study. Personality and individual differences, 31(2), 215-226.
Lee, C. K., Yiu, T. W., & Cheung, S. O. (2016). Selection and use of alternative dispute resolution (ADR) in construction projects—past and future research. International Journal of Project Management, 34(3), 494-507.
Lee, C. K., Yiu, T. W., & Cheung, S. O. (2015). Perceived risks, obligations, and uncertainties: Antecedents of unpaid contractors' intention to suspend works against non-payment. In 8th International Structural Engineering and Construction Conference: Implementing Innovative Ideas in Structural Engineering and Project Management, ISEC 2015. ISEC Press.
Loosemore, M., & McCarthy, C. S. (2008). Perceptions of contractual risk allocation in construction supply chains. Journal of Professional Issues in Engineering Education and Practice, 134(1), 95-105.
Pennings, J. M., & Smidts, A. (2000). Assessing the construct validity of risk attitude. Management Science, 46(10), 1337-1348.
Perera, B. A. K. S., Dhanasinghe, I., & Rameezdeen, R. (2009). Risk management in road construction: the case of Sri Lanka. International Journal of Strategic Property Management, 13(2), 87-102.
Project Management Body of Knowledge (PMBOK) A guide to the project management body of knowledge Project Management Institute, Newtown Square (PA) (2000).
Renuka, S. M., Umarani, C., & Kamal, S. (2014). A review on critical risk factors in the life cycle of construction projects. Journal of Civil Engineering Research, 4(2A), 31-36.
Roshana, S., Batajoo, K. H., Piryani, R. M., & Sharma, M. W. (2012). Basic life support: knowledge and attitude of medical/paramedical professionals. World journal of emergency medicine, 3(2), 141.
Sambasivan, M., & Soon, Y. W. (2007). Causes and effects of delays in Malaysian construction industry. International Journal of project management, 25(5), 517-526.
Sathishkumar, V., Raghunath, P. N., & Suguna, K. (2015). Critical Factors Influencing to Management Risk in Construction Projects. The International Journal Of Engineering And Science (IJES) Volume, 4, 37-46.
Shirodkar, V., & Konara, P. (2017). Institutional distance and foreign subsidiary performance in emerging markets: Moderating effects of ownership strategy and host-country experience. Management International Review, 57(2), 179-207.
SS, M. S. (2017). Risk Management and Effect of Contractors Risk Attitude on Competition in Construction. Imperial Journal of Interdisciplinary Research, 3(8).
Tah, J. H. M., & Carr, V. (2001). Knowledge-based approach to construction project risk management. Journal of computing in civil engineering, 15(3), 170-177.
Takim, R., & Akintoye, A. (2005, November). Process improvement of construction projects in Malaysia: analysis case studies. In Proceedings of the 2nd Scottish Conference for postgraduate researchers of Built and Natural Environment (PRoBE) (pp. 16-17).
Toh, T. C., Ting, C., Ali, K. N., Aliagha, G. U., & Munir, O. (2012). Critical cost factors of building construction projects in Malaysia. Procedia-Social and Behavioural Sciences, 57, 360-367.
Walker, D. H., & Vines, M. W. (2000). Australian multi-unit residential project construction time performance factors. Engineering, Construction and Architectural Management, 7(3), 278-284.
Wang, J., & Yuan, H. (2011). Factors affecting contractors' risk attitudes in construction projects: a Case study from China. International Journal of Project Management, 29(2), 209-219.
Wiguna, I. P. A., & Scott, S. (2005, September). Nature of the critical risk factors affecting project performance in Indonesian building contracts. In 21st Annual ARCOM Conference (pp. 225-235).
Yi, H., Cho, Y. J., Won, S., Lee, J. E., Jin Yu, H., Kim, S., ... & Chun, J. (2011). Duplex-specific nuclease efficiently removes rRNA for prokaryotic RNA-seq. Nucleic acids research, 39(20), e140-e140.
Zou, P. X., & Zhang, G. (2009). Managing risks in construction projects: life cycle and stakeholder perspectives. International Journal of Construction Management, 9(1), 61-77.