Partial least square-structural equation model for construction cost management framework of industrialized building system in Malaysia

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Nursyadzatul Tasnim Binti Roslin, Ms.
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Globally, the Industrialized Building System (IBS) Adoption has been recognized as a sustainable building strategy. In Malaysia, however, IBS implementation is still slow. This is because industry players are still unsure and unknowledgeable about whether employing IBS in building construction would increase or lower costs. They are hesitant to use IBS in the construction project because of the uncertainties. The application of success factors for cost management in IBS building projects is critical, as it may assist contractors and developers in producing a successful project. As a result, the primary goal of this study is to identify and rank cost success factors that influence IBS and general construction cost management, as well as to develop a Structural Equation Model (SEM) and cost management framework for effective project cost management of IBS construction projects in Malaysia. For this purpose, a questionnaire survey was conducted, mainly consisting of three main parts; demographic, cost success factors and positive impacts of IBS implementation. The success factors are determined and ranked by using Relative Importance Index (RII) Analysis, and the outcome was highlighted as (1) Design planning (0.9211); Supply stability of building materials (0.9158); and Contractor's site management (0.9000). Following that, the Partial Least Square – Structural Equation Model was used to create the structural model of IBS construction cost management (PLS-SEM). From the factor analysis, the result highlighted the Project group as a highly significant group towards the cost management when implementing IBS in the construction industry with a path coefficient value of 0.235. Meanwhile, the Materials and Technologies group was the least significant, with a path coefficient value of 0.053. Coefficient of determination of the model (R2) is 0.469. At the end of the research, a new approach can be established: a cost management framework that can serve as a guideline for the IBS construction project. In addition, the findings could assist contractors, developers, consultants, and others in developing effective project cost management.
Partial least square-structural equation model