BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

1.0: THE RESEARCH TITLE

THE COST MANAGEMENT OF REFURBISHEMENT BUILDING PROJECT IN MALAYSIA

1.1

Definitions and Keyword List:

A cost is a resource sacrificed (in the form of money or the value of the money

equation) to obtain products and services that will benefit current or future use of the organization. The cost management is very important for an institution to keep the flow of money in and out. Hence, the management should be done with utmost efficient to ensure good financial system in the future. Refurbishments can be defined as the works to clean and decorate a room, building in order to make it more attractive, more useful. (New Oxford English Dictionary (2012) 2nd Ed., Oxford Fajar Sdn. Bhd). Therefore, the cost management play a main role in refurbishment building project which is must do in efficient ways.

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

2.0: INTRODUCTION (CITATION)

Refurbishment in this study refers to upgrade, major repairs work, renovations, alterations, conversions, extensions and modernization of existing building, but excludes routine maintenance and cleaning work (Ali and Rahmat, 2009). The provision of modern accommodation through the refurbishment and upgrading of existing old has increased considerately in recent years and there are many reasons for this. According to Rahmat (1997), about half of the refurbishment projects started with only 60% of the design being complete. In the majority of the refurbishment projects, a high proportion of design information can only be obtained during the construction stage. The cost of refurbishing and re-using an existing building is generally lower than the cost of demolition and new construction. However, due the complexity and uncertainty of refurbishment projects proved by Egbu (1994) and Ali et al. (2008) may affect the real cost for the refurbishment process. Besides that, the performance of refurbishment projects is much affected by the design process (Stermen, 1992). The design process for the refurbishment then will give implication to the work, cost and the refurbishment period. Therefore, management in the design process needs to be improved in order to produce an accurate design before starting work on site. it

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

3.0: PROBLEM STATEMENT

Nowadays, the construction sector in Malaysia has been rapidly developed and prosperous since era of the 90s. When the construction industry sector to grow in line with the progress of the country, it will indirectly bring our country under increasing demand of the scarce and more expensive in term of land. The Local Authorities and private building owner have to take alternative plan which to forced refurbish existing buildings rather than build a new building. Problems that arise as a result of damage to the building need to be addressed as soon as possible. Maintenance is one of the best courses of action to address the problem of damage. However, in carry out the refurbishment works, several other problems arise before or during repair work are carried out. Among the problems faced by the management consist of the factors internal organizing agency. For the example, it might be have a management cost during design process of refurbishment building project which involves many parties such as design team, consultant, contractor, and supplier . This means preparing estimates for refurbishment cost allocation is complex and difficult. The types of factors that need to be considered in decision making of maintenance cost allocation vary for the existing significant building. It is involve control planning and process of refurbishment building works which are the main criteria that should be considered. According to Laufer (1994), construction planning is an interactive process performed by multiple participants, at different organizational levels and at different times and locations. Laufer et al. (1994) and Shapira et al. (1994) in their extensive research on the involvement of participants in decision-making in construction planning and control, discovered that the construction planning and control process involves many parties, internal as well as external to the construction companies. Information about building services is normally very limited and is one of the major elements of unforeseen building conditions (Azlan, 2010). Electrical wiring works and piping which embedded in walls or ceiling is one of the part of service that may affected of the pre-estimate the management cost. Meanwhile, the lack of quality in design information results in many problems which include among others incompatible designs that might crop up throughout the design process (Cornick, 1991; Ali, 2009; Sanvido and Norton, 1994).

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

Therefore refurbishment in future becomes an important sector in the construction industry. The determination of refurbishment process would helps to forecast and plan an appropriate time. By identifying the dominant factors, it provided more information regarding the refurbishment cost of buildings. Hence, this would be able to assist building managers to familiarize on the degree of risk and uncertainty that need to be mitigated in the future problems.

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

4.0: AIM OF RESEARCH

The aim of this research is to identify the cost effectiveness for refurbishment building project in Malaysia

5.0: RESEARCH OBJECTIVES

The objectives of the study are mainly focus on the following areas:

1. To identify effective sources of information that can be used during the design, process of refurbishment projects. 2. To identify the problem faced during management cost in dealing with the refurbishment project process. 3. To highlight the solutions can apply for to reduce cost management in refurbishment building project

6.0: RESEARCH QUESTIONS

Based on the objectives of the study, a few research questions emerge as stated below:

1. What are the effective sources of the information that can be used during the design, process of refurbishment projects? 2. How to identify the problem faced during management cost in dealing with refurbishment project process? 3. What is the recommendation solution can apply for to reduce cost management in refurbishment building project? 4. Who did responsibility for the lack of cost effectiveness effectiveness in building refurbishment

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

7.0: SCOPE OF STUDY

Practically a study limited by the constraints of time, energy and finance. It is study to define the scope and limitations of the terms of reference. Examples of the scope and limitations are as follows: 1. This research will be study on building refurbishment at Shah Alam, Selangor and Kuala Lumpur. 2. The methodology used is Quantitative data and Qualitative data. 3. Questionnaire distributed to developers, project managers / site managers, supervisor, consultants and contractor. 4. 3 shopping complex buildings are needed to be found and compare about refurbishment. 5. Over 5 storey shopping complex building will be studied

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

8.0: RESEARCH METHODOLOGY

The Research methodology can be defined as a collective term for the structured process of conducting research. Hence, it means the methods will be used by researcher to collect their data and present it then become the findings on the research. There are many types of methodology have been used but the main method are Quantitative Data and Qualitative Data. Besides that, the data collection methods will be used which is comes from secondary data, primary data and basic method for survey research.

Select the research title

Literature review

Problem identification

Formation of aim, objectives and scope of research

Research methodology

Formation of data gathering techniques

Primary data: Questionnaire

Data collection

Secondary data: Articles Journals Research papers Publishes books Websites

Data analysis

Results, summary, conclusions and recommendations

Figure 1: Flow Diagram of Research Methodology Page | 7

BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

Primary data collected by survey, which questionnaires prepared for developers, project managers, and estimators. Questionnaires were prepared based on Likert scale with five-point ranging from strongly agree, agree, neither agree nor disagree, disagree, to strongly disagree due to attitudinal measurement (Ryerson University, 2004).

Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

Table 1: Point ranging in Liker scale

The building plan shape will be affecting the cost of refurbishment. 1 2 3 4 5

Figure 2 : Example of using Liker scale.

Data is analysed using the median and mode of the results where appropriate. Analysed data are represented in bar diagram or pie chart.

8.1

Data Collection Methods

Data collection is a process of gathering raw information which is becomes

the findings for answering the objective studies. There can be form from secondary data, primary data or tertiary source of data. In our studies about building refurbishment, our data collection methods are using secondary data. The secondary data can be defined as data gathered and recorded by someone else prior. (Pandiyan and Chandran, 2011) The sources from secondary data can be from internal sources which is annual report, special report or other forms of report which issued by a government body by some private institutions. Next, the external sources of secondary data can be from books, government publications, regional publications, media sources and commercial sources. Thus, in our studies we are using internet as a tools for do some surfing about related journals. Other than that, we are trying to find books, research papers and any reliable resources at library.

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

DATA from secondary data; journals on internet, books

DATA COLLECTION we are collecting 10 Journals related to our topic from internet surfing and several books, articles , etc. the data are saved to our computer as collection

DATA PROCESSING the journals and books will be read and took out the important data by using taulation, edting and classification the data will be filtered only the important will be highlight and presented it out

DATA ANALYSIS the data will be analysis whether answering the research problem or not there are some of data have been find such as the cost of refurbisment, the problem during refurbishment and the solution to problem arising

INFORMATION

Figure 3: Flow Of Data Collection Process Page | 9

BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

9.0: CONCLUSION
The systematic of conducted maintenance management system is very important to be considered to ensure the smooth and maximize quality while minimizing the cost of refurbishment work done. It is impossible for a job done properly and no weakness. Similarly, maintenance management, although a lot of ways and methods that can be used to carry out refurbishment work well, there are still weaknesses and flexibility in management implemented. An exposed weakness in the building management system implemented is also a benefit to the management. The efficient management will analyze the loopholes that occur and find ways to overcome them in the future in refurbishment work. This is where the management will improve the quality of work and efficiency in managing refurbish building. However, the problems cost management arising due to considerably affected the lack of information in refurbished designs process often occurred in Malaysian Project. Efficiency and quality of management is dependent on the nature of the business conducted. Weaknesses can be seen in the maintenance management system should be examined in detail. Although a maintenance management system which is said to perfect, in fact there are still weaknesses. Therefore propose recommendations based on this research are to improve the quality and minimize the problem of cost management. In addition, the efficiency and technical knowledge about field maintenance should have this in the work force to perform the job well and satisfactorily. Efficient management is essential. For this purpose, each of the parties who manage the refurbishment is to be given knowledge adequate and up to date. For examples, the delivery of design information should be up to date and efficiency to avoid the redundant aspects. In addition, the analysis of very important work carried out to their shortcomings from time to time. Good management requires not only a good system, but should always be updated constantly to provide the quality of work provided was good and kept current with cooperation communication between parties involved.

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BACHELOR OF QUANTITY SURVEYING (HONOURS) FACULTY OF ARCHITECTURE PLANNING AND SURVEYING UNIVERSITI TEKNOLOGI MARA SHAH ALAM

10.0: LIST OF REFERENCE

10.1 Journals

1. Chau ,K.W., Wong ,S.K., Leung , A.Y.T., Yiu, C.Y. (2003),"Estimating the value enhancement effects of refurbishment", Facilities, Vol. 21 Iss: 1 pp. 13 19 2. Azlan, S.A., Syahrul N.K., Hafez S., (2009), "The characteristics of refurbishment projects in Malaysia", Facilities, Vol. 2 Iss: 1 pp. 56 65 3. Azlan, S.A. (2009),"Cost decision making in building maintenance practice in Malaysia", Journal of Facilities Management, Vol. 7 Iss: 4 pp. 298 306 4. Wong, K.C., (2000),"Valuing the refurbishment cycle", Property Management, Vol. 18 Iss: 1 pp. 16 24 5. Azlan, S.A. (2010), Design information in managing refurbishment projects in Malaysia, Vol. 5(6), pp. 768-773, June 2010 6. Pugh C. (1991) "The cost and benefits of rehabilitation and refurbishment", Property Management, Vol. 9 Iss:2 pp. 143 156 7. Lateef, O.A. (2008), Building maintenance management in Malaysia, Journal of Building Appraisal, Vol. 4 No. 3, pp. 207-14. 10.2 1. Books Marsh P. (1983), The refurbishment of commercial and industrial buildings, London, Construction Press 2. Ismail R. (2008), Managing refurbishment projects, Shah Alam, University Publication Centre (UPENA), Universiti Teknologi MARA 3. Gorse C. and Highfield D. (2009), Refurbishment and upgrading of buildings. 2nd. ed, London, Spon 4. Smith, Peter F. (2003) Eco-refurbishment : a guide to saving and producing energy in the home, Amsterdam;Boston: Architectural Press 10.2 Websites

1. Wikipedia, 2012, Renovation, Avaiable from : <en.wikipedia.org/wiki/Renovation> [Accessed 16 November 2012] 2. NST, 2012, refurbishment set to take off in malaysia , Available from :

www.nst.com.my/.../refurbishment-set-to-take-off-in-malaysia-1.920 [Accessed 16 November 2012] Page | 11