Investigation on factors that contribute to the abandonment of building in construction industry in Malaysia

Abstract

Abstract. In Malaysia, the construction sector is one of the important sectors that contribute to economic growth and employments. However, a major concern facing the construction industry is the growing rate of delays in project delivery. In the worse cases, the projects were abandoned due to some reasons when the contract period ended. Abandoned building defines as construction work that has been continuously stalled for 6 months or more, during the project completion period or beyond the scheduled date of completion. When the projects become abandoned, it gives an adverse effect on many parties such as the developer, contractor, consultant and also client. According to previous researchers, the abandonment of building causes a serious problem and need some mitigation plan to avoid this problem from occurring. This study will investigate the fundamental factors that contribute to the abandonment of building and projects in Malaysia based on the current data of the abandoned building in most states in Malaysia. The data was collected from the respondents who is in the construction industry and had experience working with abandoned housing project. Form the respondents perspective, it shows that the main factor contribute to the building abandonment is due to the financial problem facing by the developer company.

Assessment On Abandoned Housing Project: Impact and Revitalization in Malaysia

“…There are many factors that contribute to the abandoned housing project. The main factors are the financial constraints faced by the developer [8]. It is proven since one of the success factor for any development during the implementation phase is the adequate finance [9], [10].…”

Understanding Abandoned Housing Projects in Malaysia and the Protection for Home Buyers

“…3, No. 2, 2020 e-ISSN: 2636 -9419 Finally, the most popular and seemingly perennial genesis of abandoned housing projects in Malaysia is the private developers (Abdul Razak, Abu Samah, & Abdul Wahab, 2016;Ariffin et al, 2018a;Dahlan, 2006;Doraisamy, Akasah, & Yunus, 2014;Hoe, 2013;Khalid, 2010;Mumin & Zainol, 2016;Norhayate et al, 2017;Yusoff, Oseni, & Hasan, 2016). According to Khalid (2010), the developers in the first place are striving to maximize their gains and profits from selling the house.…”

The Effect on Unfavourable Economic Conditions in Malaysia to Abandoned Housing Project

“…Among those, it was found that the worst scenario in the construction project is the abandoned project. The construction sector in Malaysia has struggled with financial difficulties which have led to many problems associated with abandoned projects [4]. The abandoned housing project in Malaysia is considered as a major problem and need a necessary action to mitigated [5].…”