MEASURING PROJECT SUCCESS IN MALAYSIAN CONSTRUCTION INDUSTRY

Jaimey Attau
1
and Assoc. Professor Dr.Mohamad Ibrahim Mohamad
2

1
Civil Eng student, Faculty of Civil Engineering, Universiti Teknologi Malaysia
2
Phd, Faculty of Civil Engineering, Universiti Teknologi Malaysia



ABSTRACT:

The concept of project success has remained debatable in the construction industry because
of varying perception of each project participant. Traditionally, construction project
completed in a timely manner within an established budget and meeting required quality
have been considered successful project. However, Malaysian construction industry has
developed in size, technology and complexity, while client and end-user is more demanding
and knowledgeable. Therefore this study has been undertaken with the aim to determine a
contemporary approach in identifying project success from contractor perspective. The
objective of this study includes studying the traditional concept of defining success factor for
construction project; to determine the contemporary concept of defining the project success
and lastly to evaluate the contractor perception on defining project success. The methods
used in this study were analytical literature and questionnaires which were distributed to
selected respondents. Based on the available literature, a total of fifty four success factors
was identified and group into nine success criteria categories which is reflection to the
current Malaysian scenario. These factors were assembled into a questionnaire survey that
was distributed to selected contractor. The results of this study indicated that the
predominant factor to define project success from contractor perspective are: meets project
stakeholders needs and expectation, overall completion within the project schedule, no
accidents or fatalities during construction phase, overall completion within the project
budget, meets client satisfaction on product, meet technical specification of quality
correspond to cost, high profit margin, client capability to brief on the project scope and
objectives, and generate positive reputation/branding.


Key words: Project Success, Success Criteria, Success Factors, Malaysia

1. INTRODUCTION

The construction industry is dynamic in nature. This industry is become more dynamic due
to increasing uncertainties in technology, budget, and development process. Construction
project involves numerous parties, processes, different stages, and phases of work, with
changing participants, processes and environment. The concept of project success meant to
improve the present situation. However, this concept has remained unclearly defined in the
minds of the construction project participants. Project success means different things to
different people depending on the specific point of view. Many researchers have been able to
identified the factors of projects success, but there is no general agreement appertain to
common factors for all projects. The citeria of project success are enriched as time goes by.
Therefore, comprehensive review on contemporary method is vital for measuring
construction success in Malaysia.
2. PROBLEM STATEMENT

Traditionally, the success of a project is measured through the fulfillment of time, cost and
quality objectives. However, the definition of project success over the years has come to
include other more comprehensive aspects. Baker et al (1983) define project success by
including the elements of achieving the desired technical specification as well as the
accomplishment of the intended objectives.

The construction industries have developed in size, complexity and high demand by
client and end-user, causing project construction becoming more difficult for the project
objective of time, cost and quality to be achieved. Other measures such as safety,
functionality and satisfaction of end user, are the predominant aspect in the current trend of
Malaysian construction industry. Therefore, a comprehensive review of contemporary
method is essential to defining project success factors that contribute towards achieving
project success in Malaysia.

3. AIM AND OBJECTIVES

The aim of this study is to determine factors that can contribute to the successful of any
project. In order to achieve this, several objectives are summarized as follows:
i. To study the traditional concept of defining success factor for construction
project.
ii. To determine the contemporary concept of defining the project success.
iii. To evaluate the contractor perception on defining project success.

4. SCOPE AND LIMITATION OF THE STUDY

This study was conducted to seek outlined objectives based on responses from contractors,
which are currently working on several projects in Kuala Lumpur and Selangor. As such, this
study is limited and only focused in Klang Valley. In order to meet the said objective, both
traditional and contemporary method in defining project success will be included.
5. SIGNIFICANT OF THE STUDY
In construction industry, measuring the performance in term of success or failure is a
complex process. Traditionally, time, cost and quality are defined as the basic criteria of
measuring success. However, different ideas on measuring project success have been
developed in the last few decades. Therefore, it is essential to study the contemporary concept
of defining project success on top of the traditional method. This study will further enhance
contractors understanding of running a successful project and thus set a foundation for them
to improve project performances by providing helpful information that is necessary for the
achievement of a successful project.

6. METHODOLOGY
Table 6.1 shows the summary of primary aim, objectives and methodologies adopted in this
study.

Table 6.1: summary of primary aim, objectives and methodologies
Primary aim: To determine factors that can contribute to the successful of any project
No Objectives Task Methodologies
i
To study the traditional
concept of defining
success factor for
construction project.
Review on success definition
Review on project success
component
Review on traditional concept to
define project success
Literature search
Interview with expert
panel
ii
To determine the
contemporary concept
of defining the project
success.
Review of contemporary
concept to define project success
Review on stakeholder
perception on defining project
success
Literature search
Interview with expert
panel
iii
To evaluate the
contractor perception on
defining project success.
Evaluate the level of agreement
on the factors that influencing
the successful of a project from
contractor perspective
Interview with expert
panel
Questionnaire Survey
Data Analysis and Dissemination

6.1 Literature search
Literature search has been carried out through variety information sources, which included
library references books, journals, articles and researchers papers and report from internet.
6.2 Interview with Expert Panels
Interview with the selected project team player were conducted to gain in-depth
understanding of the subject matter.
6.3 Questaionnaire Survey
In this study, there were 48 questionnaire being distributed to selected contractor which are
currently working on several projects in Klang Valley, with various level of experience,
classes, working nature and responsibilities as their involved in managing construction
project. There were all together 31 responses and responses rate 65% in feedback. The
correspondences of the questionnaire are 3 responses from class F, 4 responses from class B
and 24 responses from class A.
6.4 Analysis Method
The measurement tools in the survey provide quantitative indication of the qulitative
judgements. The rating scale of the questionnaire are 1=least significance, 2=quite
significance, 3=moderately significance, 4=significant, 5=very significance. The main
approach used to analyse the data was using Relative Importance Index and Mean Index.


Relative Importance Index (RII) computed as:

RII = Wi Xi
Xi
Where:

RII = Relative Importance Index;
Wi = the weight assigned to i
th
response ( 1,2,3,4,5 respectively );
Xi = frequency of the i
th
response given as percentage of the total
responses for each factors.

Mean Index computed as:


Mean Index = X n
N

Where:

= Weighting given to each factor by respondents (1 to 5)
n = Frequency of the respondents.
N = Total number of respondents.

Rating scale: (Majid & McCaffer, 1997)

1 = Least Significance (1.00 Mean Index <1.50)
2 = Quite Significance (1.50 Mean Index <2.50)
3 = Moderately Significance (2.50 Mean Index <3.50)
4 = Significance (3.50 Mean Index < 4.50)
5 = Very Significance (4.50 Mean Index 5.00)


7. RESULT AND DISCUSSIONS

Finding 1: Traditional method to define project success

Traditionally, the success of a project is measured on the basis of time, cost and quality.
Nearly every project management article mentions these three criteria and point out the
importance of them in a construction project. Project success will be confered if it is
completed within the budgeted cost, implemented on time and to quality parameters
requested. Almost every researcher mentioned these criteria in their findings as shown in
Table 7.1 and further supported by all the interviewee that traditionally, the success of
project is measured based on time, cost, and quality as shown in Table 7.2

Finding 2: Contemporary method to define project success

Through extensive literature search and interview conducted with expert panels, new
template of contemporary method to define project success has been developed. This
template consists of nine (9) success criteria as shown in Figure 7.1











Figure 7.1: Project Success Criteria
The new template of contemporary method to define project success was developed by
reviewing the project evaluation criteria by previous researchers as shown in Table 7.1 and
interview with expert panels in Table 7.2.

Finding 3: Contractor perception on defining project success.

Contractor perception of defining project success is identified by analysing the level of
agreement on the factors that influencing the successful of a project. Figure7.2 shows the
ranking of success factor from contractor point of view according to Relative Importance
Index in ascending order which is dominating for each category of success criteria.

Figure 7.2: Ranking of Success Factor
Project Success
Time
Quality
Cost
Scoping
Safety & Health
Financial
Condition
Project
Functionality
Satisfaction &
Expectation
Sales &
Marketing
8. CONCLUSSION


Aim and objectives have been achieved and the following is the conclusion of each objective
of this study

Objective 1: To study the traditional concept of defining success factor for construction
project.

The first objective of this study has been achieved by successful literature review and the
interview conducted with the expert panel in the construction industry. Traditionally, time,
cost and quality are defined as the basic criteria of measuring project success. Project success
will accorded if it is completed within the budgeted cost, completed on time or ahead of the
project schedule and achieved the required standard of quality.
Objective 2 : To determine the contemporary concept of defining the project success
The second objective of this study has been achieved by successful literature review and the
interview conducted with the expert panel in the construction industry. New template of
contemporary method to define project success has been developed. This template consists of
nine (9) success criteria which are: Time, Cost, Quality, Scoping, Safety and Health, Project
Functionality, Satisfaction and Expectation, Financial Condition and Sales and marketing.
Objective 3 : To evaluate the contractor perception on defining project success.
The third objective of this study has been achieved by successful analysing the level of
agreement on the factors that influencing the successful of a project through the result
gathered from questionnaire survey distributed to the selected contractor. The survey result
revealed that the predominant factor to define project success from contractor perspective are:
meets project stakeholders needs and expectation, overall completion within the project
schedule, no accidents or fatalities during construction phase, overall completion within the
project budget, meets client satisfaction on product, meet technical specification of quality
correspond to cost, high profit margin,client capability to brief on the project scope and
objectives, and generate positive reputation/branding.

9. RECOMMENDATION
Another study can be done for a specific type of construction projects, such as utility projects,
housing projects, highway projects, etc. Detail study can be done to determine the success
factors that contribute to the successful of the specific project in various location of project in
Malaysia.





REFERENCES

1. Atkinson, R., (1999), Project Management: Cost, time and Quality, Two Best
Guesses and a Phenomenon, Its Time to Accept Other Success Criteria, International
Journal of Project Management, 17(6), 337-342.
2. Baker, B.N., Murphy, D.C. and Fisher, D. (1983), Factors Affecting Project Success:
Project Management Handbook. New York: Van Nostrand Reinhold
3.. Chan, A.P.P., Chan, A.P.L., (2004), Key performance indicators for measuring
construction success, Benchmarking: an International Journal, 11, 203-221.
4. Sanvido, V., Grobler, PK., Guvenis, M., Coyle, M., (1992), Critical success factors
for constructions project, Journal Construction Management,118(1),94-111.
5. Omar Osman, (2006), Pengurusan Pembinaan: Konsep, Strategi dan Aplikasi,
Penerbitan Universiti Sains Malaysia.


















Table 7.1: summary table for project evaluation criteria by previous researchers

A
u
t
h
o
r
s

C
o
s
t

T
i
m
e

Q
u
a
l
i
t
y

Satisfaction
R
e
d
u
c
e

M
o
d
i
f
i
c
a
t
i
o
n

N
o

L
e
g
a
l

C
l
a
i
m

U
s
e
r

E
x
p
e
c
t
a
t
i
o
n

F
u
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t
i
o
n
a
l
i
t
y

M
e
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t

T
e
c
h
n
i
c
a
l


S
p
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c
i
f
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c
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n

C
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m
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r
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i
a
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P
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S
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E
f
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E
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F
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C
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C
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C
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M
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M
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E
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.


C
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s
t
.

A
n
d

A
r
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h
.

M
a
n
a
g
.

Kometa et al. (1995
x x x x x x
Liu (1999)
x x x x x x
Dissanayaka &Kumaraswamy (1999)
x x x x x x
J
o
u
r
n
a
l

o
f

C
o
n
s
t
.

P
r
o
c
u
r
e
.

Walker (1996)
x x x
Songer et al. (1996)
x x x x
I
n
t
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n
a
t
i
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n
a
l

J
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n
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P
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t

M
a
n
a
g
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m
e
n
t

Gray et al. (1990)
x x x
Munns (1995)
x x x x
Wateridge (1995)
x x x x x x x x x x x x
Munns & Bjeirmi (1996)
x x x
Belassi & Tukel(1996))
x x x
Belout (1998)
x x x x x X x x
Jang & Lee (1998)
x x x
Atkinson (1999)
x x x x x x x x x
Lim & Mohamed (1999)
x x x x x x x x x
Brown & Adams (2000)
x x x
Gardiner & Stewart (2000)
x x x
Note: Part of the summary table for project evaluation criteria by previous researchers.
Table 7.2: Content analysis interview session with expert panels
Question
Respondent 1
(Client)
Respondent 2
(Client)
Respondent 3
(Contractor)
Respondent 4
(Contractor)
Respondent 5
(Consultant)
Traditional Concept of Defining
Success Factors
Successful project always measured
based on 3 main categories; time, cost
and quality. It has to be completed
within the budgeted cost, at the agreed
time frame and with a reasonable
quality corresponds to its cost.
Traditionally, a project
considered successful
when completed within
time frame given, within
budgeted cost and fulfil
scope
Traditionally, contractor
defined a project is
successful based on 3
factors; time, cost and
quality. The project to
be completed within the
time given, within the
project budget and to
achieved required
standard/quality
Traditionally. Contractor
defined a project based on 3,
major factors; to complete
the job on time or ahead of
time and it is within the
project budget and to meet
the required standard of
quality
A project is considered
successful if it is built
within budget, time, and to
specified standard
Q1
Based on your experience,
traditionally how do we
defined (or factors that
contribute) a project as being
success?
Q2
Do you think this concept of
defining successful of a
project still relevant for
construction project
nowadays?
To some extend these 3 factors are still
relevant, however purchaser/client
nowadays is more demanding and
knowledgeable, thus need other factors
as well. Yes
Not so, should consider
other factors
Not so, because there are
other factors that determine
a project as being
successful. Not necessarily
Contemporary Concept of Defining
Success Factor
1) Satisfied Client
2) Reputation
3) High Profit
4) minimum modification
during construction
1) Satisfied client
2) Implementation
Of safety and
Health
3) Aesthetic Value
4) Marketing


1) Safety and
Health
2) Profitable
3) Client satisfied
4) Cost
5) Scope
Design of good quality and
finishes. It should also be
environmentally friendly at
construction site
1) Environmental
Acceptability
2) Sustainable
3) No Accidents
or fatalities
4) Scope of work
Q3
If you think otherwise for
question (2) then what are the
factors that should be
considered as factors that
determine the successful of a
construction project?
Q4
Does the meaning of
successful project differ from
different stakeholder
perspective today? Definitely Yes Yes Yes Yes
Stakeholder Expectation

Client:
1) Time
2) Cost
3)Quality
4) Marketing
Consultant:
1) Quality
2) Cost
3) Compliance
Contractor:
1) Time
2) Cost
3) Quality
4) Profit

Client:
1) Quality
2) Cost
3) Time
Consultant:
1) Quality
2) Satisfied client
3) Minimum
construction problem
Contractor:
1) Time
2) Cost
3) Profitable
4) Safety and Health
Client:
1) On time
2) Quality
3) On budget
Consultant:
1) Satisfied client
2) Minimum
construction problem
3) Profitable
Contractor:
1) Profitable
2) Safety and Health
3) Reputation
Client:
1) Profitable
2) Reputable
3) Quality design
Consultant:
1) Recognized
2) Good concept
design
3) award wining
4) International recognition
Contractor:
1) Budget
2) Recognition
Client:
1) Within budget
2) Within time
3) Sustainable design
Consultant:
1) Sustainable
2) Good Design
3) Environmental
sound
Contractor:
1) Profitable
2) No accidents or
fatalities
Q5
Then what will be the success
factor for client, consultant
and contractor?