Investigating the Primary Problems and Current Practices of Built-up Rates in the Malaysian Construction Industry

Abstract

This study aims to investigate the primary problems and current practices of the built-up rate in the Malaysian construction industry from the perspectives of various construction players. The built-up rate is a crucial cost estimation method in construction projects, and inaccurate estimates can have a negative impact on the project's success. The literature review highlights the importance of cost estimation in construction and the challenges faced in producing accurate and reliable estimates. The study collected data from 300 respondents through an online survey, and the analysis of 293 valid responses shows that changes in market price is the primary problem faced by respondents in the built-up rate. This issue includes outdated market prices, price fluctuations, lack of information about prices, and inflation. Other problems identified were difficult to determine labor constant and inconsistency in the formula. The study provides insights for industry practitioners to improve the current practices and address the primary problems faced in the built-up rate method to enhance cost estimation accuracy and the success of construction projects.