ANALYSING THE SIGNIFICANT INFLUENCES OF COST PERFORMANCE IN MALAYSIAN RAIL PROJECTS: EXPLORATORY FACTOR ANALYSIS

Mohamad Zahierruden  Ismail; Zuhaili  Mohamad Ramly; Mohd Saidin  Misnan

doi:10.24191/myse.v11i1.993

Authors

Mohamad Zahierruden Ismail
Zuhaili Mohamad Ramly
Mohd Saidin Misnan

DOI:

https://doi.org/10.24191/myse.v11i1.993

Keywords:

Construction Project Management, Construction Cost Management, Rail projects, Exploratory Factor Analysis (EFA)

Abstract

Delivering successful rail projects has always been extremely difficult. The fact is widely discussed in developed nations as their outstanding rail networks were known to have significant cost overruns. A comprehensive rail network is progressing in developing nations, and cost overruns have already occurred in nations like China and India. The problem is critical in Malaysia, where poor cost performance has been highlighted for decades. This study aims to establish the significant influences on cost performance of rail projects, by assessing the critical influences that may affect project cost management. Primary data was gathered from 100 cost managers in the rail construction industry. Five (5) main component elements were discovered with a total of fifty (50) related items based on prior studies. Project estimation, project planning, project management, technical experience, and project complexity can be categorized as the primary component aspects. The influences and their respective items are then utilized to create the questionnaire for gathering data. Collected data were then analyzed using Exploratory Factor Analysis (EFA), which focused on the five (5) components and fifty (50) influences that affected rail construction cost performance. The overall variance percentage was 62.514%. Each component has a minimum of four variables, thus complying with the requisite that every component needs a minimum of three variables. The Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy value obtained from the results is 0.813, which is highly close to 1. All components satisfied the Factor Analysis standards as each influence loading is higher than 0.4. Project Planning has the highest Eigenvalue (26.764), while Project Estimation has the lowest Eigenvalue (5.136). Industry professionals need to understand the main elements affecting construction costs. Then the professionals can be empowered with the ability to develop effective strategies to improve cost management in rail projects.

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