ISSUES OF PAYMENT PROCUREMENT PROCESS FOR INDUSTRIALISED BUILDING SYSTEM (IBS) PROJECT
DOI:
https://doi.org/10.11113/jt.v78.8826Keywords:
Payment, contractor, financial, procurementAbstract
This research paper intends to investigate the issues of payment procurement process for Industrialised Building System (IBS) Project. There are many differences of payment procurement process between conventional and IBS project. The IBS project requires upfront payment as compared with conventional project. Up to this moment, there is no single solution to this issue. Very often, the IBS contractor faces financial difficulty leading to the bankruptcy and delaying in the project completion. Thus, a preliminary study was undertaken with 21 samples of respondents that have a variety of background occupational. The findings from the study revealed that the issue of payment for IBS contractors comprises of five (5) main factors which are high initial cost, difficulty in securing timely and adequate financing, lack of integration at design stage, difficulty to get loans from financial institution and increment of material prices. Findings from this study may help the decision makers including the government or Construction Industry Development Board (CIDB) to formulate a new procurement process especially for the IBS contractor. The findings will be used for the financial model framework for the IBS contractor in the future.References
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