UPSI Digital Repository (UDRep)
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Abstract : Universiti Pendidikan Sultan Idris |
This study was aimed to develop financial management framework for Industrialised
Building System (IBS) project through incorporation criteria which employed Analytic Hierarchy
Process (AHP) based on adaptation from Saaty’s rule of thumb. The study also analysed the payment
issue of IBS project and factors influencing it. The criteria in the new payment method for IBS
project was also studied. The research design in this study was survey method. The research
instruments were survey questionnaire, interview protocol and focus groups. A sample of 172
respondents from 43 IBS projects in Klang Valley from the year 2008 until 2015 were selected using
the cluster sampling. Majority of IBS projects were saturated in Klang Valley. Data were analysed
using descriptive statistics which are mean and standard deviation to rank the payment issues and
Analytic Hierarchy Process (AHP) to select the criteria for IBS project in the development of
financial management framework. Cronbach’s alpha had been undertaken to validate the instrument
with value of 0.881. Based on weightage of importance, the main criteria for the development of
financial framework for IBS project showed that the main key criteria are Material (31.0) followed
by Initial Cost (27.4), Contract Document (25.3) and Drawing and Design Matters (25.1) while for
the sub-criteria is the advance payment for initial stage (22.9). In conclusion, the most critical
criteria to take into consideration in new payment method is in terms of Material and Initial Cost.
The implication of the research is the financial management framework proposed can be used by the
industry players to resolve the payment issue in IBS project. The study also implicates that
tackling the main issues of payment of IBS project may assist the government and relevant parties
especially in the early stage of construction due to huge capital investment.
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