Professional Documents
Culture Documents
BCM 622 - Nuraerniesha Aziera - 2020458984
BCM 622 - Nuraerniesha Aziera - 2020458984
BCM 622 - Nuraerniesha Aziera - 2020458984
2021
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TABLE OF CONTENT
1.0 CHAPTER 1 ................................................................................................................... 1
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3.1 RESEARCH STRATEGY ............................................................................................. 24
REFERENCES ........................................................................................................................ 29
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LIST OF FIGURES
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1.0 CHAPTER 1
1.1 INTRODUCTION
Essentially, this chapter will briefly introduce the research background, the issues, aims
and objectives, significance of the study, scope, and limitations along with the methodology of
this research which related to the impacts of Covid-19 towards construction industry.
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1.2 RESEARCH BACKGROUND
The Covid wave (COVID-19) has been proclaimed a pandemic by the World Health
Organization (WHO) in January 2020. The Covid-19 is a pandemic issue that is causing broad
worldwide interruptions, compelling lockdowns in numerous nations including Malaysia as an
exertion for detaching the infection from spreading. And Malaysia, imposing its own
lockdown, the MCO, which massively affects Malaysia's businesses including the construction
industry particularly toward workers. (Muneera Binti Esa et al.,2020)
Construction is critical to the worldwide economy. It is a sector that has seen a huge
effect on its workings and has been among the ones receiving the hardest hit as far as COVID-
19 (McClure et al., 2020). The aftermath of COVID-19 on the construction industry are
twofold. Contrastingly, work has been ended or changed and new ventures and project stopped
while construction rehearses struggle with better approaches for working. Indeed, even after
the MCO was lifted, construction projects and activities continued to experience interruptions.
For example, the emergence of consolidating severe standard working strategies on health and
safety measures ("SOPs") for construction sites. Such disturbance has forestalled them from
doing their fills in as initially and ordinarily visualized. Also, construction companies needs to
acclimate to social distancing, executing new hygiene, and obliging a more prominent degree
of working from home.
The significance of wellbeing, health, and safety, just as hygiene, has never been
clearer. Adding these into account while also complying with the existing safety measures in
the standard parts of work, in a sector which normally has numerous dangers can pose
challenges for some companies. Conveying safety is a huge test (Health and Safety Executive
[HSE], 2019). The temporary idea of game plans can introduce a challenge for safety initiative
(Stiles et al., 2018a), which is a critical system for connecting with the labor force in safety
(Zohar, 2002; Zohar and Luria, 2003).
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1.3 PROBLEM STATEMENT
The construction sector, in the same way as other different sectors, has been impacted
by Covid-19 in various ways. The worldwide construction industry will confront many
difficulties such as less employment opportunities, daily working period along with a
shortage of personal protective equipment (PPE) which was caused by the more pressing
need for it by the healthcare sector, shutting of industrial factories, low productivity,
inability to handover projects as specified, border closings, delays, or failure to get required
allows, and changes in the work culture on the sites (Holland et al, 2020).
During the Conditional MCO in May and June 2020, project workers kept on
encountering challenges, for example, the huge of demanding standard operating procedure
on safety and health measures for construction sites (Bernama newspaper, 2021).
Moreover, according to Obal and Gao, the construction industry was questionable about
supplies from suppliers as the pandemic spreads and this automatically caused delay (Obal
and Gao 2020).
The suspension of practically all construction activities during the MCO resulted in no
work being completed and subsequently no payments being made, yet workers for hire kept
on causing their common expenses, for example rental charges, wages, and overheads, and
so on. (Driver Trett Digest, 2021). The construction sector is one of the industries with little
opportunity to work from home, and the sector remains largely labor intensive (Olanrewaju
and Abdul-Aziz, 2015). As the impact of Covid-19 on the construction sectors is being
examined (Pamidimukkala et al., 2021), there is no systemic and empirical evaluation
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measure to reduce its spread and effects on the construction site because this sector required
more hands-on activities rather than visually.
In order to overcome them, construction insutry should seek the opportunity to create
business-to-business (B2B) relationships during stable times to improve on the existing
efficiency and profitability of the business (Obal and Gao 2020).
Other than that, parties that handle agreements and contracts, extra awareness should
be taken of the current stockpile and valuing issues. It is important to ensure that the
prospective contract adequately captures the risk allocation between the parties from danger
for any material-related delays or cost increments. (Simon Dunkling, 2021) -risk measure.
Besides, Project Leadership and Society, it mentioned, Project managers are relied upon to
give a safe working environment to worker during covid-19, for example, guaranteeing a
social distance of 1.5 m between workers and the usage of face mask to moderate the
transmission of the Covid-19(Stiles et al., 2020). Based on the issues highlighted, not much
research has conducted on the effects of Covid-19 especially towards construction industry.
Hence, it has to be analyzed in depth to bring out great data and hypothesis for this research.
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1.4 RESEARCH QUESTION
1. What is Covid-19?
2. What is construction industry?
3. What is Covid-19’s impact towards construction industry?
4. What are the measures to overcome Covid-19 impacts toward construction
industry?
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1.5 AIMS AND OBJECTIVES
The overall aim for this research is to investigate the effects of Covid-19 toward construction
industry.
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1.6 SIGNIFICANCE OF STUDY
The principal purpose behind this research is to investigate and gain knowledge on the effects
and changes that happened in the construction industry caused by Covid-19 and to introduce a
moderation structure to limit the effects. Other than that, this study will also help the project
managers and experts in the construction industry comprehend the effects, difficulties and
challenges of the Covid-19 and take on successful steps towards the recovery of their
companies.
By identifying the remedial measures, it will help the construction industry to bounce
back after the Covid-19. The effect of covid has interfere the smoothness of the industry, so
this research will essentially help them to improve and break through the endemic. This is
related to the Construction industry transformation program which is to improve quality, safety,
and professionalism across the construction industry (CIDB, 2020)
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1.7 SCOPE AND LIMITATION
This research zeroed in on contemplating the impacts of shocks on the construction industry
specifically in Sarawak. According to The Borneo Post Sabah, they stated that Sarawak has a
bright spot in Malaysia’s construction industry. In other words, this research study focuses on
the impacts of Covid-19 on the construction industry in Sarawak.
The respondents for this research are from the Sarawak construction industry itself.
Besides, there is no limitation while doing the research study as the research was primarily
done via the internet.
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1.8 RESEARCH METHODOLOGY
A numerous research methodology was embraced to satisfy the objectives of this research. This
study uses Qualitative Sampling approaches which are:
1. Literature Review
The literature reviews are one of the researcher's assets through insinuating the past research
and discoveries either in diaries, books, newspapers, gathering's reports, and others, which has
been finished by the past researchers.
This research is using Quantitative survey as this survey help to gain details from the
respondent about the research topic. The answer to the survey will then be analyzed and
research report is generated from the data. The respondent of this research will be the
contractors in Sarawak. As the surveys completed, data analysis is done by reviewing the
accumulated data from the surveys throughout the data collection phase in mean formula. Then,
data outcome shall determine the feasibility of this study.
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1.9 RESEARCH STRUCTURE
This report consists of 5 chapters, all topics are composed and presented as below:
Chapter 1: Introduction
The introduction explains about the impacts of covid-19 in the construction sector. This chapter
will also include the issues, aim, objectives, research questions, scope, and limitation, research
methodology, significance of the research and the content of this research.
On chapter 2, This part will clarify past research from past researchers about related study.
Additionally, this part clarifies in detail about the research questions.
This chapter will zero in on depicting the methods used to gather every each of the information
required all through the research interaction.
The results and findings shall be derived from the responses obtained via surveys and
interviews done. Statistics will be done based on the data collected.
This chapter will summarize the research and a conclusion shall be derived by relating the
objectives with the results and findings obtained through this research.
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2.0 LITERATURE REVIEW
This chapter will clarify past research from past researchers about the impacts of covid-19
toward construction. Additionally, this part clarifies in detail about the questions through
mediums such as articles, diaries, journals, research, and websites to collect data. Besides, it
will talk about an overview of covid-19 outbreak, current scenario of construction industry,
effects along with the remedial measure towards construction industry during covid-19.
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2.2 COVID-19 OUTBREAK
Covids (CoV) are a huge group of infections that cause sickness going from the normal cold to
more extreme illnesses. A novel Covid (nCoV) is another strain that has not been recently
recognized in people. The new infection was therefore named the "Coronavirus infection"
(WHO, 2020) The COVID-19 pandemic is considered as the most pivotal worldwide health
disaster of the century and the best test that the mankind looked since the second World War.
In December 2019, another irresistible respiratory sickness came out in Wuhan, Hubei region,
China and was named by the World Health Organization as COVID-19 (Indranil Chakraborty,
2020)
On 11 March 2020, the fast expansion in the quantity of cases outside China drove the
WHO Director-General to report that the flare-up could be portrayed as a pandemic. By then
in excess of 118 000 cases had been accounted for in 114 nations, and 4291 deaths had been
recorded. (WHO, 2019)
By mid-March 2020, the WHO Region had turned into the focal point of the pandemic,
revealing more than 40% of around the world affirmed cases. Starting at 28 April 2020, 63%
of worldwide mortality from the infection was from the Region. Since the main cases were
accounted for, WHO has worked nonstop to help nations to plan and react to the COVID-19
pandemic. (WHO, 2019)
The WHO Emergency Use Listing process decides if the prodcuct can be suggested for
utilize dependent on every one of the accessible information on health and adequacy and on its
appropriateness in low-and center pay nations. Vaccines are surveyed to guarantee they satisfy
adequate guidelines of value, security and viability utilizing clinical preliminary information,
assembling and quality control processes. The appraisal gauges the danger acted by the crisis
like well as the advantage that would accumulate from the utilization of the item against any
expected dangers. In accordance with their public guidelines and regulation, nations have the
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independence to give crisis use approvals for any health product. Domestic emergency use
approvals are given at the discretion of nations and not expose to WHO endorsement. (WHO,
2020)
As stated by WHO, starting at 26 November 2021, the accompanying vaccines have gotten
EUL:
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2.3 CURRENT SCENARIO OF CONSTRUCTION INDUSTRY
Malaysia's construction industry is set to recuperate in 2021 and extend by 14.6% after
construction movement was brought to a stop across many pieces of the country because of the
effect of COVID-19 control measures. Nonetheless, the recuperation is more an impression of
the profundities to which action fell in 2020 during the COVID-19 lockdown, rather than an
indication of resurgence, says Global Data, a main information and investigation company
(Global Data, 2021)
The construction industry is relied upon to post a yearly normal development pace of
6.5% in genuine terms between 2022–2025, driven by a recovery in financial conditions,
combined with interests in transport structure, environmentally power, private, broadcast
communications and water foundation projects. In mid-December 2020, the public authority
supported a 2021 spending plan worth MYR322.5bn (US$75.8bn), which is the biggest in the
nation's set of experiences and is 2.4% higher than 2019's financial plan of MYR314.7bn
(US$74bn). Of the all-out spending plan, 73.3% is designated towards functional use, 21.4%
towards improvement use and the leftover 5.3% towards managing the COVID-19 pandemic
(Global Data, 2021)
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2.4 EFFECTS OF COVID-19 TOWARDS CONSTRUCTION INDUSTRY
Various research was performed to explore the effect of the pandemic on the construction
industry.
Coronavirus has hindered and will probably keep on upsetting subcontractor planning just as
the supply of materials (del Rio-Chanona et al., 2020). Material delays that slowed down the
site activities progress and set off significant timetable interruptions were capable because of
the social distancing and isolating necessities. The delays were especially apparent when the
supply chain included materials from different nations (Fernandes, 2020). This is supported by
Alsharef, he stated that a large portion of the companies revealed encountering or anticipating
disruptions in material supply. These destructions in material supply were likewise, thus,
expected to defer generally project progress and cause huge project due date disturbances. The
disruptions were especially applicable when material or natural substance from abroad
included. For instance, one of the project managers referenced that few supplies were to be
transported from Europe, nonetheless, the manufacturing factories were non-functional in
Europe because of the COVID-19 pandemic (Alsharef, 2020). And also, according to Ankan
Biswas, many materials are required yet because of lockdown, these are not arriving at the
construction from outside which is hampering and delaying the construction work. The
different materials that come from various factories in different nation through various vehicles
for construction work, those material cannot be delivered (Ankan Biswas, 2020)
Del Rio-Chanona also likewise announced conceivable estimates of the demand and
supply, trying to recognize that some industries will have a quick decrease in output because
of a deficiency in demand (Del Rio-Chanona, 2020). The construction industry was
questionable with regards to supplies from supplier as the pandemic spreads because of
difficulties in getting to supplies prompting conceivable closure by suppliers. A portion of these
difficulties came into place because of issues related with cleaning and disinfection of the
supplies, and the missing labor force at the supplier' closures due to the standard of procedure
(SOP). This prompted supply disruption or disappointment in keeping supplying chain plans,
which affected vigorously on the supplier (GCR Staff 2020).
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2.4.2 SUSPENDED PROJECT
Pretty much every project has a "time of essence" agreement and a due date. Missing a
reasonable reason, the outcome for inability to fulfil the due date constraint might incorporate
end of the agreement for default. The construction industry was one of the primary industries
to be affected by COVID-19, and the workers have been exposed to an expanded danger of
tainting (Koh, 2020a). Projects have been suspended, deferred, or changed and new works have
been delayed as the board has attempted to deal with better approaches for working
environment (Apurva Pamidimukkala, 2021). This is supported by other researcher,
concerning adverse consequences experienced, the pandemic has deteriorated suspension of
project, for example, cost and due date overruns, mainly because of the everyday difficulties
faced by worker and the incapable work from home for site-based cycles (Ogunnusi et al.,
2020).
As per Siddharth Banerjee, in numerous different cases, the study revealed that few
private companies are referring to monetary worries with the more extensive market and
mentioning that construction industry be either be hold or slowed down. As indicated by one
architect, with the expanding number of people working, the eventual fate of retail and business
property stays unsure. The member additionally referenced that it is improbable for the interest
in few areas to bounce back in the short term. (Siddharth Banerjee, 2021)
While according to Alex Albert, New construction projects were especially affected.
One project engineer announced that almost 90% of the activities that were in the front-end
loading (FEL) stage like pre-project planning were required to be postponed. In addition, a few
on-going projects that were in the offering stage were likewise dropped or delayed. (Alex
Albert, 2021)
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2.4.3 FINANCIAL PROBLEM
Payment delays are probably going to happen because of delays in construction projects, and
efficiency is adversely impacted as contractors battle to pay their workers, subcontractors, and
their supplier punctually (Pamidimukkala et al., 2021). Because of material expenses and
challenges that owners had making opportune instalments to contractors during the pandemic,
payment delays turned into a significant issue and contrarily impacted the delivery of supplies,
this automatically postponed the construction activities, construction progress, and now and
then even prompted projects being suspended (Choudhari, 2020).
As claimed by Environmental Research and Public Health, the disruption in supply chain
brought an increment in the expense of construction supplies. As mentioned before, a large part of the
supply disruption came out because of the reduction and decrease in the limit of manufacturing and
handling facilities that are upstream in the supply chain. The grow in the expense of timber, concrete,
and substantial items was one of the causes of payment delay. Alongside the increase in the expense of
material, an increase in the expense of carrying on with construction activities was likewise reported
(Alsharef, 2021). According to Gamil and Alhagar, payment delay and cost overrun effect brought by
the financial deterioration, project suspension, and progressing overhead expenses to keep the
construction projects running (Gamil and Alhagar, 2020).
Besides, because of non-sale of production line delivered supplies, the government cannot gather
appropriate expenses like taxes which is straightforwardly affecting the country's GDP and when the
country's GDP goes down, it influences the worldwide economy. (Ankan Biswas, 2020)
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2.4.4 IMPLICATION IN STANDARD FORM OF CONTRACT
It is essentially based on a statement called 'force majeure'. There are many principles
referenced in this statement, 'Large Scale Epidemic' is one of them. Coronavirus pandemic falls
inside this classification. The companies have an agreement with the contractors and if the
'Force Majeure' Clause is referenced in the agreement then no payment will be paid to the
contractors by the agency because of postponement. The outcome is a great deal of monetary
misfortune when contractor quit working. (Journal of Physic,2021)
Remembering the contractual language, Covid-19 pandemic would fit inside the clause
assuming that there is a particular notice of occasions, for example, "outbreak disease",
"pandemic" or "epidemic". Notwithstanding, assuming as far as possible the force majeure to
be solely a few occasions like earthquakes and storms, demonstrating Covid-19 is expected by
the statement will be contestable (Shaughnessy et al. 2020).
Other than that, the project contractor would be qualified for guarantee for an EOT on
the off chance that the MCO brings about one of the occasions explicitly set out in the EOT
agreements. One should be careful that these are just agreements that direct time privilege
under an agreement. These statements do not permit a party to end or leave the construction
project (Article of Ganpartnership, 2020)
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2.5 THE REMEDIAL MEASURES TOWARD CONSTRUCTION INDUSTRY
DURING COVID-19
To ensure the survivability of construction industry in the era of Covid-19, the employers
should take remedial measures. Some remedial measures could be beneficial for construction
industry to bounce back after Covid-19.
The drops of Covid-19 can travel right around 9 meters from the individual after the emanation
of cough and sneeze (Ramesh et al., 2020). Rothan and Byrareddy (2020) clarify that the drops
of Covid-19 patients are additionally spread by talking, the infection can live for a long time
on a superficial level, for example, on equipment, counters, and handles. It has likewise been
distinguished that an individual who has an infection of Covid-19, yet the symptoms are not
showing can be a source to spread the Covid-19. These basic realities help covert the critical
significance of social distancing among workers to control the infection of Covid-19. The
construction workers should ensure the authorization of actual social distancing at the
construction site Every worker should score a temperature of under 37-degree centigrade to be
permitted on site. (Rothan and Byrareddy, 2020)
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2.5.2 PROVIDE PERSONAL PROTECTIVE EQUIPMENT (PPE)
Applying PPEs in regard to safety measures is a main component in each industry. Workers
should wear gloves, masks, gaiters, glasses, and face shields constantly on construction site.
All the construction workers should follow Standard Operating Procedures with respect and
sterilize the PPEs. (Muzaffar Iqbal et al., 2021; Naveed Ahmad et al.,2021) This is also
supported by Ankan Biswas as he mentioned the same thing and he stated, when working in
the construction site, worker really need PPEs supplies, for example, helmets, safety boots and
so on to make sure themselves are away from harms. Other than that, Sanitizer should be
utilized now and again to keep hands clean. (Ankan Biswas, 2020)
Another study by Osinachi Nwandem, 2020, found that The Contractor should confirm
the agreement contains a force majeure clause and assuming the clause provide an exceptional
for special event or situation that can be depended on. Then, at that point, the contractor should
tell the project owner of the on-going project about the occurrence of the force majeure. Lastly,
Parties should know the choices accessible to them, assuming the agreement is designed
according to most standard types of a construction contract, then, at that point, parties are
probably going to be qualified for three choices which are suspension of the projects, Extension
of Time (EOT) and release from further performance of the contract (Osinachi Nwandem,
2020)
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2.5.4 EXPEND USE OF TECHNOLOGY
The use of technology innovation has expanded during the pandemic, as workers have
performed works remotely rather than in the workplace. While construction industry does not
appear to be a field that fits Zoom meetings and other virtual meetings. (Firm, 2021)
Numerous workers from numerous industries are working from home during the
lockdown, but it is very hard to work from home within the construction industry. Be that as it
may, the company should attempt to get workers far from one another however much as could
be expected, so it is protected to telecommute. So, workers should telecommute as much as
conceivable, for example, do meetings, filling up Google forms to get some data from work,
marking contracts carefully, making discussion or sending mails and so on planning, arranging
or estimating and costing should likewise be possible with technology at home (Ankan Biswas,
2020)
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2.6 SUMMARY
Taking everything into account, this chapter have clarified the effects of Covid-19 towards the
construction industry. This chapter likewise have clarified the remedial measures in defeating
the Covid-19 effects toward the construction industry. The literature review figured out how to
embrace chosen past research to get the understanding of Covid-19 effects and the remedial
measures taken. The next chapter will then be discussion on the Research Methodology on
particular matters.
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3.0 RESEARCH METHODOLOGY
Based on past research from past researchers about the impacts of covid-19 toward
construction, it shown that the awareness in the recovery after the pandemic are low. The main
objective of this research is to (1) determine the effect of Covid-19 faced by the construction
industry, and (2) analyse the remedial measures in overcoming Covid-19 effects towards the
construction industry. In order to achieve these objectives, this chapter will explain in depth
the methods and approaches that has been applied to gather every each of the information
required all through the research.
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3.1 RESEARCH STRATEGY
RESEARCH AIM
- To investigate the effects of Covid-19 toward construction industry.
RESEARCH QUESTIONS
RESEARCH OBJECTIVES What is Covid-19?
1. To determine the effects of Covid-19 faced by the What is construction industry?
construction industry. What is Covid-19’s impact towards construction industry?
2. To analyze the remedial measures in overcoming Covid-19 What are the measures to overcome Covid-19 impacts toward construction industry?
effects towards the construction industry.
LITERATURE REVIEW
DATA COLLECTION
-Quantitative Method (Questionnaire survey)
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3.2 DATA COLLECTION APPROACH
As this research is using a quantitative research method, a survey approach is the most
reasonable technique to be use as it will show patterns for the impacts of Covid-19 toward
construction industry. Quantitative research method is more preferred over qualitative research
method since it is more logical, scientific, quick, focused, and acceptable. (Formplus Blog,
2019; Richard.T, 2013). For this research, a survey approach will be picked to accomplish aim
and objectives. Questionnaire surveys are a typical method for gathering information in a
various of fields. An online survey is used to lead this survey as it is an easy technique to gather
the information. By using online survey, a possibility to gather a useful information which in
a large sum as less effort required and can avoid from mistake. Also, the target respondent such
as contractors needs to acquire exact data as suitable relies upon the kind of data expected to
respond to the inquiry.
The arrangements of questionnaire will be recognized ahead of time on the factors that
they are relevant according to the research topic before giving it out to the respondents. Then,
at that point, survey will be produced by utilizing Google forms because of the easement that
the online platform offers. It is a logical arrangement of questions on an online platform, with
a pre-determined plan and leaving appropriate spaces for respondents to answer. This is to
guarantee that the information gathered serves the destinations of the research aim and
objectives precisely.
The Google form is contained of questionnaire through multiple choice questions, scale
questions, and open-ended questions. This is to ease respondents in furnishing their responses.
The Google form then will be circulated via WhatsApp, Facebook, Twitter and etc. After the
survey reached the target at the required number of respondents, the information date will then
be gathered and analysed prior before it will be displayed it in tables and charts.
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3.3 SAMPLING
The target population is the gathering of people that the involvement expects to direct research
and make determinations (Louise Barnsbee, 2018). This research is utilizing quantitative
research method which comprise of questionnaire survey. This questionnaire will then be
distributed to all workers in construction industry in Sarawak. Sarawak construction industries'
workers are the populaces that are intended to answer this questionnaire. It is to be trust, the
choosing of this sort of respondents may be simple to accomplish the aim and objectives of this
research. Hence, this population target was picked by alluding to the experience they had in
this tough spot and connecting with the impacts of Covid-19 towards their industry.
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3.4 METHOD OF ANALYSIS
Data analysis is the method involved with gathering, demonstrating, and breaking down data
information to separate bits of knowledge that help the research process. There are a few
methods and procedures to perform research relying upon the aim and objectives of the
research. For this research, mean formula is adopted.
The mean is the normal or a determined focal value of a bunch of numbers and is utilized to
quantify the central tendency of the information. Central tendency is the factual measure that
perceives the whole arrangement of information or conveyance through a a single value.The
mean formula in statistics for a set is defined as the sum of the observations divided by the total
number of observations. The formula to compute the mean will be useful in settling a major
part of the topics connected with the mean.
𝑆𝑢𝑚 𝑜𝑓 𝑑𝑎𝑡𝑎
Mean =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑎𝑡𝑎
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3.5 SUMMARY
In this chapter, the main focus was on the research methodology. Various research
methodology was portrayed, a quantitative research method was embraced, utilizing a
questionnaire survey which consist of multiple-choice questions, scale questions, and open-
ended questions. This chapter also clarified on the method of analysis used and depicting the
target populace had been used in this research.
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