Assessing Causal Relationships Between Construction Resources and Cost Overrun Using PLS Path Modelling Focusing in Southern and Central Region of Malaysia

Abstract

Construction resources are fundamental requirement for any construction
\nproject to achieve project completion within estimated budget. The
\nfundamental construction resources include material, manpower, machinery
\nand money. These resources have significant effect on construction cost.
\nConstruction cost is now a days facing problem of coverrun. Hence,
\nit is very critical to assess impact of various resources on cost overrun.
\nData collection was carried out using structured questionnaire survey
\namongst client, consultant and contractors in southern and central region
\nof Malaysia. A total of 234 questionnaire were collected including 128 in
\nsouthern part and 106 in central part. Data was analysed with PLS path
\nmodelling using SmartPLS v2.0 software. The result showed that resources
\nhave significant effect on cost overrun. Extracted variance showed that in
\nsouthern region, around 40% of cost variation can be caused because of
\nconstruction resource while in central region variance is achieved as 59%.
\nMaterial resource was found as common and most significant resource in
\nsouthern and central region. GoF value was achieved as 0.529 and 0.566
\nfor southern and central regions respectively confirming the explaining
\npower of the proposed path model.