Integration of whole life cycle costing with sustainable facilities management for privatized building projects in Malaysia

Privatized building projects are escalating in Malaysia and render the importance of Whole Life Cycle Costing (WLCC) and Sustainable Facilities Management (SFM) as these are the two main features of the projects. However, in Malaysia, the guideline for these projects focuses only on WLCC but not on SFM, thus jeopardizing the maintenance culture. Additionally, Malaysia lacks standardized procedures for implementing WLCC and SFM. Therefore, this research examined the barriers and drivers of WLCC and SFM for privatized building projects in Malaysia, investigated the parameters of WLCC and SFM relevant to these projects, proposed a framework of WLCC of SFM for these projects and validated the proposed framework. In order to achieve the intended objectives of the research, the quantitative method was adopted, whereby self-administered questionnaires were utilized. Since the population of the respondents of the research is relatively small, hence, no sampling was required. The questionnaires were distributed to all the members of Malaysian Association of Facility Management (MAFM). The results revealed that the main barrier that hindered the WLCC implementation in the projects was the inconsistency in underlying philosophy and methodology whereas for SFM, there was a lack of guidance in the documentation. In order to drive the implementation of both WLCC and SFM, the findings showed that it is essential to define WLCC parameters and assumptions, besides reducing the life cycle costing for SFM. Additionally, the findings disclosed significant parameters of WLCC and SFM, which led to the development of a framework of WLCC of SFM for the projects. The framework was validated by means of a Delphi survey that revealed the satisfaction of all the panel of experts. In conclusion, the research contributes by means of developing a framework of WLCC and SFM, adjudged to have the potential to systematically guide the facility managers in implementing WLCC of SFM for privatized building projects in Malaysia to enable them to succeed in terms of monetary as well as sustainability

Issues relating to contract administrator's instruction

Contract Administrator is an employer’s agent who is engaged primarily to ensure that the works are executed effectively and economically but he is not a party to a construction contract and has no authority to instruct contractor. Thus, express provisions are included in the contract to give contract administrator power to issue instructions to contractor. Contract administrator’s instruction is very important in a construction contract and due to its importance, any issues relating to the instructions may lead to many disputes in construction contract. Therefore, this research seeks to identify issues that commonly arise relating to contract administrator’s instructions. An analysis of four selected legal cases is conducted to review the facts and the decision of the courts on the matters of contract administrator’s instructions. From the analysis, it is found that the issues that commonly arise relating to contract administrator’s instructions are non issuance of instructions, incomplete instructions, instructions are outside the scope provided by the contract and informal instructions. Therefore, parties in a construction contract must be aware of these issues in order to reduce or eliminate the effects that might occur due to it

Whole life cycle costing for sustainable facility management

Buildings are long term investment and associated with environmental concerns over its life span. Thus, more projects have been procured using Public Private Partnership and Private Finance Initiatives (PPP/PFI). Likewise, in Malaysia, PPP/PFI projects are escalating which render the importance of Whole Life Cycle Costing (WLCC) and sustainable facility management. However, PPP/PFI projects in Malaysia are still young and tend to focus more on the value for money rather than its environmental impacts. The research seeks to examine the importance of WLCC for SFM as well as to investigate the barriers and drivers of SFM of PPP/PFI projects in Malaysia. Quantitative approach is adopted and questionnaires are distributed to all members of Malaysian Association of Facility Management (MAFM) accordingly. Collected data is analysed by means of Severity Index (SI) and Relative Importance Index (RII). Findings revealed that lack of guidance documentation is the main barrier while the reduction of life cycle costing is regarded as the main driver of SFM for PPP/PFI projects in Malaysia. This research recommends that further research is essential in order to integrate WLCC and SFM for PPP/PFI projects in Malaysia so that not only value for money projects can be achieved but also sustainable projects

Barriers and drivers of whole life cycle costing of sustainable facility management for PPP/PFI projects in Malaysia

Whole Life Cycle Costing (WLCC) and Sustainable Facility Management (SFM) are two key principles of Public Private Partnerships and Private Finance Initiatives (PPP/PFI) projects in Malaysia as the projects are usually awarded for a concession period of up to thirty years. However, these principles are at the infant stage which render complications in its implementation. The research seeks to examine the barriers and drivers of implementation of WLCC of SFM for PPP/PFI projects in Malaysia. Quantitative approach is adopted for the research where questionnaires are distributed to all members of Malaysian Association of Facility Management (MAFM). In order to achieve the objectives of the research, collected data is analysed and presented in the form of Severity Index (SI) and Relative Importance Index (RII). The findings reveal that inconsistency in underlying philosophy and methodology, lack of incentive, lack of motivation and lack of wellestablished standard and method are the main barriers of implementation of WLCC of SFM for PPP/PFI projects in Malaysia. In order to overcome the barriers, there is a need to define the parameters and assumptions of WLCC, to provide incentive for its implementation, to develop WLCC framework and to establish standard and guideline of WLCC. The research recommends that further research is significant in defining the parameters and assumptions of WLCC so that a standardized methodology can be made available to members of MAFM for effective implementation of WLCC of SFM for PPP/PFI projects in Malaysia

Evaluation of barriers to value management application in construction projects

Value Management (VM) initiatives have been recognized as beneficial to the construction industry of most developed and developing countries. The Society of American Value Engineers (SAVE) has reiterated that the application of VM methodology would enhance the quality and performance of construction projects. Though a number of countries apply the VM technique, a developing country like Nigeria seems to have a limited application. This study therefore evaluates the critical barriers to VM application in the Nigerian construction industry. Data collection was based on self-administered questionnaires from construction professionals, while data analysis techniques employed include: descriptive analysis, normality test; reliability test; validity test using Kaiser-Meyer-Olkin (KMO) and Barlett’s test of sphericity; factor analysis; and structural equation modelling (SEM). Lack of VM experts, lack of awareness on VM among clients, poor working relationship among stakeholders, inadequate facilitation skills/training, and absence of local VM guidelines are the major barriers to VM practice. Fifteen (15) barriers were validated under four major classifications (People, Government, Environment, and Methodology). The implication of this study is to assist construction practitioners, researchers, and academics to focus on the important concerns that are necessary to support the application of VM in developing countries in order to enhance the value of construction projects

A systematic approach to reduce operation and maintenance costs of private highway projects in Malaysia

A systematic approach in managing operation and maintenance costs of private highways is crucial to obtain sustainable long-term profit of private highways development in Malaysia. Operating and maintenance costs in road projects are a real challenge and form an significant part of the total cost of road growth. This paper is start with examining the process of private highway developments in Malaysia includes all associated funding received from Government of Malaysia since 1982. Cost data from twenty-nine private highway projects are collated and analyzed. The outcome of the research shows that majority of the highways were built with no systematic approach to managing operating and maintenance costs during the concession period agreement. A literature analysis identified five main components and twenty-two elements are contributed to the escalating of operation and maintenance costs. This paper uses a qualitative approach by analyzing secondary data from various industrial report to provide systematic breakdown of highway assets to develop a sustainable cost model. This study has clearly demonstrated the need to develop a sustainable cost model for the management of operations and maintenance of private highways in Malaysia

Towards a framework of automated resource model for post contract cost control of construction projects

Real-time control of on-site construction cost has been a major concern as every client demand value for the money invested in procuring a construction project. The design team and other stakeholders in the construction industry face the challenges posed by the ever-increasing complexity of construction facilities, and the demands of clients to meet their needs within a given budget. In addition, the trend of information technology in construction demands that all activities including cost optimization be automated and digitalized for better proficiency of the construction professionals and effectiveness of job delivery. This article presents a conceptual framework for the automated resource model (ARM) for on-site construction cost control. The concept of ARM is based on the use of mobile technology, integrating it with a back-office central system for real-time data capturing, monitoring, and control to keep expenditure within a predetermined budget. The scope covered includes Automated Real-Time Data (ARTiD) collection, Construction Progress Monitoring and Evaluation, and Construction Activity Monitoring. The ARM concept can enable the construction stakeholders to obtain information on cost implications of all activities simultaneously. It can also enable quick detection of any source of cost and time overrun and propose quick remedial action