THE COST MANAGEMENT OF REFURBISHEMENT BUILDING PROJECT IN MALAYSIA

BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING

UNIVERSITI TEKNOLOGI MARA SHAH ALAM

1.0: THE RESEARCH TITLE

THE COST MANAGEMENT OF REFURBISHEMENT BUILDING PROJECT

IN MALAYSIA

1.1 Definitions and Keyword List:

A cost is a resource sacrificed (in the form of money or the value of the money

equation) to obtain products and services that will benefit current or future use of the

organization. The cost management is very important for an institution to keep the

flow of money in and out. Hence, the management should be done with utmost

efficient to ensure good financial system in the future.

Refurbishments can be defined as the works to clean and decorate a room,

building in order to make it more attractive, more useful. (New Oxford English

Dictionary (2012) 2nd Ed., Oxford Fajar Sdn. Bhd). Therefore, the cost management

play a main role in refurbishment building project which is must do in efficient ways.

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2.0: INTRODUCTION (CITATION)

Refurbishment in this study refers to upgrade, major repairs work, renovations,

alterations, conversions, extensions and modernization of existing building, but

excludes routine maintenance and cleaning work (Ali and Rahmat, 2009). The

provision of modern accommodation through the refurbishment and upgrading of

existing old has increased considerately in recent years and there are many reasons

for this.

According to Rahmat (1997), about half of the refurbishment projects started

with only 60% of the design being complete. In the majority of the refurbishment

projects, a high proportion of design information can only be obtained during the

construction stage.

The cost of refurbishing and re-using an existing building is generally lower

than the cost of demolition and new construction. However, due the complexity and

uncertainty of refurbishment projects proved by Egbu (1994) and Ali et al. (2008) it

may affect the real cost for the refurbishment process.

Besides that, the performance of refurbishment projects is much affected by

the design process (Stermen, 1992). The design process for the refurbishment then

will give implication to the work, cost and the refurbishment period. Therefore,

management in the design process needs to be improved in order to produce an

accurate design before starting work on site.

.

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3.0: PROBLEM STATEMENT

Nowadays, the construction sector in Malaysia has been rapidly developed

and prosperous since era of the 90s. When the construction industry sector to grow in

line with the progress of the country, it will indirectly bring our country under

increasing demand of the scarce and more expensive in term of land. The Local

Authorities and private building owner have to take alternative plan which to forced

refurbish existing buildings rather than build a new building.

Problems that arise as a result of damage to the building need to be

addressed as soon as possible. Maintenance is one of the best courses of action to

address the problem of damage. However, in carry out the refurbishment works,

several other problems arise before or during repair work are carried out. Among the

problems faced by the management consist of the factors internal organizing agency.

For the example, it might be have a management cost during design process of

refurbishment building project which involves many parties such as design team,

consultant, contractor, and supplier .

This means preparing estimates for refurbishment cost allocation is complex

and difficult. The types of factors that need to be considered in decision making of

maintenance cost allocation vary for the existing significant building. It is involve

control planning and process of refurbishment building works which are the main

criteria that should be considered.

According to Laufer (1994), construction planning is an interactive process

performed by multiple participants, at different organizational levels and at different

times and locations. Laufer et al. (1994) and Shapira et al. (1994) in their extensive

research on the involvement of participants in decision-making in construction

planning and control, discovered that the construction planning and control process

involves many parties, internal as well as external to the construction companies.

Information about building services is normally very limited and is one of the

major elements of unforeseen building conditions (Azlan, 2010). Electrical wiring

works and piping which embedded in walls or ceiling is one of the part of service that

may affected of the pre-estimate the management cost. Meanwhile, the lack of quality

in design information results in many problems which include among others

incompatible designs that might crop up throughout the design process (Cornick,

1991; Ali, 2009; Sanvido and Norton, 1994).

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Therefore refurbishment in future becomes an important sector in the

construction industry. The determination of refurbishment process would helps to

forecast and plan an appropriate time. By identifying the dominant factors, it provided

more information regarding the refurbishment cost of buildings. Hence, this would be

able to assist building managers to familiarize on the degree of risk and uncertainty

that need to be mitigated in the future problems.

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4.0: AIM OF RESEARCH

The aim of this research is to identify the cost effectiveness for refurbishment building

project in Malaysia

5.0: RESEARCH OBJECTIVES

The objectives of the study are mainly focus on the following areas:

1. To identify effective sources of information that can be used during the design,

process of refurbishment projects.

2. To identify the problem faced during management cost in dealing with the

refurbishment project process.

3. To highlight the solutions can apply for to reduce cost management in

refurbishment building project

6.0: RESEARCH QUESTIONS

Based on the objectives of the study, a few research questions emerge as stated

below:

1. What are the effective sources of the information that can be used during the

design, process of refurbishment projects?

2. How to identify the problem faced during management cost in dealing with

refurbishment project process?

3. What is the recommendation solution can apply for to reduce cost

management in refurbishment building project?

4. Who did responsibility for the lack of cost effectiveness effectiveness in

building refurbishment

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7.0: SCOPE OF STUDY

Practically a study limited by the constraints of time, energy and finance. It is study

to define the scope and limitations of the terms of reference. Examples of the scope

and limitations are as follows:

1. This research will be study on building refurbishment at Shah Alam,

Selangor and Kuala Lumpur.

2. The methodology used is Quantitative data and Qualitative data.

3. Questionnaire distributed to developers, project managers / site managers,

supervisor, consultants and contractor.

4. 3 shopping complex buildings are needed to be found and compare about

refurbishment.

5. Over 5 storey shopping complex building will be studied

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Select the research title

Literature review

Problem identification

Formation of aim, objectives and scope of research

Research methodology

Formation of data gathering techniques

Results, summary, conclusions and recommendations

Primary data:

Questionnaire

Secondary data:

ArticlesJournals

Research papersPublishes books

Websites

Data collection

Data analysis



8.0: RESEARCH METHODOLOGY

The Research methodology can be defined as a collective term for the

structured process of conducting research.

Hence, it means the methods will be used by researcher to collect their data

and present it then become the findings on the research. There are many types of

methodology have been used but the main method are Quantitative Data and

Qualitative Data. Besides that, the data collection methods will be used which is

comes from secondary data, primary data and basic method for survey research.

Figure 1: Flow Diagram of Research Methodology

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Primary data collected by survey, which questionnaires prepared for

developers, project managers, and estimators. Questionnaires were prepared based

on Likert scale with five-point ranging from “strongly agree”, “agree”, “neither agree

nor disagree”, “disagree”, to “strongly disagree” due to attitudinal measurement

(Ryerson University, 2004).

Strongly agree Agree Neither agree

nor disagree

Disagree Strongly

disagree

1 2 3 4 5

Table 1: Point ranging in Liker scale

The building plan shape will be

affecting the cost of refurbishment. 1 2 3 4 5

Figure 2 : Example of using Liker scale.

Data is analysed using the median and mode of the results where appropriate.

Analysed data are represented in bar diagram or pie chart.

8.1 Data Collection Methods

Data collection is a process of gathering raw information which is becomes

the findings for answering the objective studies. There can be form from secondary

data, primary data or tertiary source of data.

In our studies about building refurbishment, our data collection methods are

using secondary data. The secondary data can be defined as data gathered and

recorded by someone else prior. (Pandiyan and Chandran, 2011) The sources from

secondary data can be from internal sources which is annual report, special report

or other forms of report which issued by a government body by some private

institutions. Next, the external sources of secondary data can be from books,

government publications, regional publications, media sources and commercial

sources.

Thus, in our studies we are using internet as a tools for do some surfing

about related journals. Other than that, we are trying to find books, research papers

and any reliable resources at library.

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DATAfrom secondary data; journals on internet, books

DATA COLLECTIONwe are collecting 10 Journals related to our topic from internet surfing and several books, articles , etc.the data are saved to our computer as collection

DATA PROCESSINGthe journals and books will be read and took out the important databy using taulation, edting and classification the data will be filteredonly the important will be highlight and presented it out

DATA ANALYSISthe data will be analysis whether answering the research problem or notthere are some of data have been find such as the cost of refurbisment, the problem during refurbishment and the solution to problem arising

INFORMATION



Figure 3: Flow Of Data Collection Process

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9.0: CONCLUSION

The systematic of conducted maintenance management system is very

important to be considered to ensure the smooth and maximize quality while

minimizing the cost of refurbishment work done. It is impossible for a job done

properly and no weakness. Similarly, maintenance management, although a lot of

ways and methods that can be used to carry out refurbishment work well, there are

still weaknesses and flexibility in management implemented. An exposed weakness

in the building management system implemented is also a benefit to the

management.

The efficient management will analyze the loopholes that occur and find

ways to overcome them in the future in refurbishment work. This is where the

management will improve the quality of work and efficiency in managing refurbish

building. However, the problems cost management arising due to considerably

affected the lack of information in refurbished designs process often occurred in

Malaysian Project.

Efficiency and quality of management is dependent on the nature of the

business conducted. Weaknesses can be seen in the maintenance management

system should be examined in detail. Although a maintenance management system

which is said to perfect, in fact there are still weaknesses. Therefore propose

recommendations based on this research are to improve the quality and minimize

the problem of cost management. In addition, the efficiency and technical

knowledge about field maintenance should have this in the work force to perform the

job well and satisfactorily.

Efficient management is essential. For this purpose, each of the parties who

manage the refurbishment is to be given knowledge adequate and up to date. For

examples, the delivery of design information should be up to date and efficiency to

avoid the redundant aspects. In addition, the analysis of very important work carried

out to their shortcomings from time to time. Good management requires not only a

good system, but should always be updated constantly to provide the quality of work

provided was good and kept current with cooperation communication between

parties involved.

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10.0: LIST OF REFERENCE

10.1 Journals

1. Chau ,K.W., Wong ,S.K., Leung , A.Y.T., Yiu, C.Y. (2003),"Estimating the

value enhancement effects of refurbishment", Facilities, Vol. 21 Iss: 1 pp. 13

– 19

2. Azlan, S.A., Syahrul N.K., Hafez S., (2009), "The characteristics of

refurbishment projects in Malaysia", Facilities, Vol. 2 Iss: 1 pp. 56 – 65

3. Azlan, S.A. (2009),"Cost decision making in building maintenance practice in

Malaysia", Journal of Facilities Management, Vol. 7 Iss: 4 pp. 298 – 306

4. Wong, K.C., (2000),"Valuing the refurbishment cycle", Property

Management, Vol. 18 Iss: 1 pp. 16 – 24

5. Azlan, S.A. (2010), Design information in managing refurbishment projects

in Malaysia, Vol. 5(6), pp. 768-773, June 2010

6. Pugh C. (1991) "The cost and benefits of rehabilitation and refurbishment",

Property Management, Vol. 9 Iss:2 pp. 143 – 156

7. Lateef, O.A. (2008), “Building maintenance management in Malaysia”,

Journal of Building Appraisal, Vol. 4 No. 3, pp. 207-14.

10.2 Books

1. Marsh P. (1983), The refurbishment of commercial and industrial buildings,

London, Construction Press

2. Ismail R. (2008), Managing refurbishment projects, Shah Alam, University

Publication Centre (UPENA), Universiti Teknologi MARA

3. Gorse C. and Highfield D. (2009), Refurbishment and upgrading of

buildings. 2nd. ed, London, Spon

4. Smith, Peter F. (2003) Eco-refurbishment : a guide to saving and producing

energy in the home, Amsterdam;Boston: Architectural Press

10.2 Websites

1. Wikipedia, 2012, Renovation, Avaiable from :

<en.wikipedia.org/wiki/Renovation> [Accessed 16 November 2012]

2. NST, 2012, refurbishment set to take off in malaysia , Available from :

www.nst.com.my/.../refurbishment-set-to-take-off-in-malaysia-1.920 [Accessed

16 November 2012]

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THE COST MANAGEMENT OF REFURBISHEMENT BUILDING PROJECT IN MALAYSIA

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