TOPIC 3

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

DEPARTMENT OF QUANTITY SURVEYING
FACULTY OF ARCHITECTURE, PLANNING & SURVEYING

UNIVERSITI TEKNOLOGI MARA PERAK BRANCH

RESEARCH PROPOSAL

TOPICS:

1. UNETHICAL ACT IN QUANTITY SURVEYOR
PROFESSION IN MALAYSIAN CONSTRUCTION
INDUSTRY

2. CHALLENGES IN MAINTAINING HERITAGE
BUILDINGS IN MALAYSIA

3. ISSUES IN CONDUCTING CONSTRUCTION PROJECT
AFTER THE MOVEMENT CONTROL ORDER (MCO):
CONTRACTOR

PREPARED BY:
NAME: NUR FADHILAH BINTI AKMAR
MATRIC.NO: 2021853368
CLASS: AP224 4A
H/P NO: 017-4455602

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

ISSUES IN CONDUCTING CONSTRUCTION PROJECT
AFTER THE MOVEMENT CONTROL ORDER (MCO):

CONTRACTOR

1. INTRODUCTION / BACKGROUND OF RESEARCH

Coronavirus disease 2019 (COVID-19) has swept the globe, killing hundreds of millions of people,
shutting down economies, closing borders, and spreading destruction on a massive scale. In
many areas, it has pushed healthcare systems and staff to breaking point, and it will undoubtedly
have a long-term impact on medical research including Malaysian construction industry. The
outbreak has resulted in a global economic downturn, in addition to the major health issue. It is
supported by King et al. (2021), the COVID-19 pandemic has had a significant impact on the
economy and the construction industry.

The construction industry is vital to the nation's economic, social, and political
development. The COVID-19 pandemic had erupted in our world, affecting the construction
industry. Due to the pandemic, all construction activities have been halted as a result of the
Malaysian government's Movement Control Order (MCO). Due to the pandemic, all construction
activities have been halted as a result of the Malaysian government's Movement Control Order
(MCO). Work from home may not be feasible because physical activity must be performed on-
site. If any major construction projects were to be delayed, it would have a significant impact on
Malaysia's economic growth (Zamani et al., 2021).

As a result of the lockdown, construction activities were also facing project suspension and
cancellation due to a shortage of materials, equipment, and parts. Therefore, this study aims to
investigate the issues in conducting construction project after the movement control order (MCO)
and suggested solutions to overcome the issues. This study would be conducted among
Contractors in Malaysia. However, only certain issues in conducting construction project after the
Movement Control Order (MCO) among Contractors in Malaysia would be discussed in this study.

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

2. PROBLEM STATEMENT

Movement Control Order (MCO) really give a big impact to Malaysian economy in every sector.
Companies and the economy in general were negatively impacted by the virus and the measures
put in place to try to control it. The construction industry in Malaysia, like everything else, was
severely impacted by the COVID-19 pandemic. Except for critical or essential services, most
construction work was halted throughout the MCO. Even after the MCO was lifted, contractors
continued to face challenges, such as having to implement stringent standard operating
procedures on health and safety measures ("SOPs") for construction sites. As a result of the
disruption, they have been unable to complete their work as originally and normally planned.
Among the issues that occur against contractors are related to operational, financial, productivity
etc.

MCO affects progression of construction projects in Malaysia. MCO has a strong impact
on construction players especially contractors in Malaysia. To begin with, MCO affects the
operational of the construction projects. According to Zamani et al. (2021), there are three (3)
operational factors have been identified which are Project Timeline, Labour, and Material. As a
result of COVID-19, the government imposed the Movement Control Order (MCO) on March 18,
2020, which was extended until December 31, 2020. Nevertheless, the project timeline was
changed because construction activity ceased during MCO, causing the project to be delayed. As
mentioned by King et al. (2021), projects delays also caused due to strict SOP compliance,
authority’s approval, and shortage of workers on construction site. Despite all of the causes,
productivity of the project also could be reduced or sometimes also could be loss due to COVID-
19 pandemic as only a few labours can enter the site at certain times. A labour shortage has
always been a concern for the construction industry, but the pandemic has exacerbated it, with a
large percentage of construction workers reportedly testing positive for the coronavirus
(Pamidimukkala and Kermanshachi, 2021).

Next, the contractors also faced a financial problem in conducting construction projects.
As stated by King et al. (2021), economic problems may have an impact on the contractor’s
finances and its economic environment. The financial related to changes in cashflow and main
income of the construction projects. Contractors' income is calculated based on payment claims.
Clients will not pay the contractors because projects will be suspended during MCO. Contractors

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

lost money because operating costs in the form of overhead did not end with the project. SOP
compliance after MCO also contributes to the increase in cost of the construction project. As
mentioned by Zamani et al. (2021), the increased material price is due to changes in foreign
exchange rates and increased demand for supplies. Furthermore, COVID-19 test procedures
have resulted in additional costs for the contractors. In short, due to MCO, increase in cost in
construction projects are influenced by the higher of materials and COVID-19 appliances that
should be placed construction site.

3. RESEARCH AIM

The aim of the study to investigate the issues in conducting construction project after the
movement control order (MCO).

4. RESEARCH OBJECTIVES

Based on the issues and problem statement, the research objectives are as follow:

i. To identify the issues in conducting construction project after the Movement Control Order
(MCO).

ii. To determine the challenges after MCO towards the Contractors.

iii. To suggest the solutions for problem cause by COVID-19.

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

5. RESEARCH QUESTIONS

Based on the issues and problem statement, the research questions are as follow:

i. What are the issues in conducting construction project after the Movement Control Order
(MCO)?

ii. What the challenges after MCO towards the Contractors?

iii. What are the solutions for problem cause by COVID-19?

6. METHODOLOGY

According to (Rahim et al., 2019), the methodology has been used to achieve the study's goal.
Study’s goals also can be defined as studies or research objectives. The objectives of this
research are at first to identify the issues in conducting construction project after the Movement
Control Order (MCO). Second, to determine the challenges after MCO towards the Contractors,
and thirdly, to suggest the solutions for problem cause by COVID-19. Methodology itself is a
process or strategy used to find, select, process and evaluate information according the chosen
topic. For this research, all the data would be obtained from literature review and qualitative
methods.

6.1 Scope of Research

This study is focusing on the issues in conducting construction project after the Movement Control
Order (MCO) and suggest solution to overcome the problems. This study also carried on among
Contractor that has been faced the same problems in conducting the construction project after
MCO.

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

6.2 Study population

Population studies should be conducted among contractors under Construction Industry
Development Board (CIDB). It will be conducted by focusing in Kuala Lumpur as the area owned
the most experienced construction players and firms.

6.3 Sampling method

The sampling method used for this study is non random sampling since the survey suitable only
for the contractors that already experienced in facing the same problems in conducting the
construction project after MCO.

6.4 Data collection methods

Primary data will be collected through questionnaire survey and secondary data obtained from
journal, article, guideline standards, etc. Interviews with contractors' companies that had been
involved in building construction projects were conducted as part of the data collection process.
The acquired data was analyzed using a qualitative technique by phone interviews and others
related.

6.5 Research process BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

Identifying the problem statement,
research objectives, and research

scope

Literature review

Data collection
- Qualitative Method

Data Analysis using Statistical
Package for Social Science
(SPSS)

Conclusion

Figure 1: Research Process

As shown in Figure 1, the first process of this research would be through identifying the problem
statement research objectives, and research scope. Second is the process of the literature review
for obtaining the general information on a research topic. Then, data collection for distribution of
questionnaire to the target population would be conducted by using qualitative method. It would
continue to the data analysis process by using Statistical Package for Social Science (SPSS) for
generating the overall conclusion of the research.

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

7. LITERATURE REVIEW

MCO has an impact on the progress of construction projects in Malaysia. MCO has a significant
impact or issues on Malaysian construction players, particularly contractors. Therefore, the issues
and the solutions would be discussed under this study.

7.1 Movement Control Order (MCO)

According to Esa et al. (2020), MCO is used nationwide in Malaysia, where most major sectors
are prohibited from operating during this time, and most workers are encouraged to work from
home or stay at home to reduce virus transmission. In Malaysia, the MCO was implemented under
the Control and Prevention of Infectious Diseases Act 1988 and the Police Act 1967. Esa et al.
(2020) also added that the restriction of people's movement from one location to another, whether
locally or internationally, which can lead to the spread of unexpected diseases or viruses. The
restrictions imposed during the MCOs period are involved of closing all of premises and various
sectors in Malaysia including construction industries.

7.2 Issues in conducting construction project after the Movement Control Order (MCO)

Since the COVID-19 virus hit the country early this year, the industry has suffered from effects
such as project suspension, disruption of supply chains, and workforce shortage as mentioned
by King et al. (2021). Existence of MCO is due to COVID-19 in Malaysia causes a lot of issues
while conducting a construction project. Many researchers found that contractors are facing some
problems related to financial, operational, and productivity of the construction projects in Malaysia.

In addition, MCO has caused delays in subcontractor scheduling as well as the delivery
of goods and supplies, and it is expected to continue. Projects have been delayed due to a lack
of personal protective equipment, materials, equipment, labourers, and information
(Pamidimukkala and Kermanshachi, 2021).

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

7.3 Solutions for the issues in conducting construction project after the Movement
Control Order (MCO)

Generally, despite all of the issues, there have been the solutions to solve it. For this study, things
about the contract are suitable to be made as the solution to the issue. In this case, as stated by
King et al. (2021), contracts in the standard form, such as JKR and PAM contracts, are typically
used to bind the contractor and client's contractual relationship. Due to the virus outbreak, no
clause in the contract's JKR or PAM form specifies contractors' entitlements. In addition, Malaysia
has no precedent to determine whether the outbreak qualifies as a force majeure event because
the contract's force majeure clause under Extension of Time (EOT) entitlement does not expressly
state that a virus is included. King et al. (2021) suggest that the government allow contractors to
claim Extension of Time (EOT) for delays caused by projects stopping during MCO and refrain
from imposing Liquidated and Ascertained Damages (LAD) for delays caused by COVID-19.
Other than contract matters, contractors must plan and coordinate carefully when putting the SOP
into action on the job. It is suggested that the government should provide clear SOP and an officer
to assist at the project site.

8. CONCLUSION

The research investigated and highlighted the issues in conducting construction project after the
Movement Control Order (MCO) among contractors in Malaysia. Issues that would be
investigated could be the effects towards Contractors during COVID-19 which is after the MCO.
The solutions for the issues or problems also provided in this study. Extension Of Time have been
stated in this study for Contractor’s benefit.

BQS664- FINAL PROJECT/DISSERTATION
RESEARCH PROPOSAL

REFERENCES

Esa, M. B., Ibrahim, F. S. B., & Kamal, E. B. M. (2020). Covid-19 pandemic lockdown: The
consequences towards project success in malaysian construction industry. Advances in
Science, Technology and Engineering Systems, 5(5), 973–983.
https://doi.org/10.25046/aj0505119

King, S. S., Rahman, R. A., Fauzi, M. A., & Haron, A. T. (2021). Mechanisms for addressing the
impact of COVID-19 on infrastructure projects. IOP Conference Series: Earth and
Environmental Science, 682(1). https://doi.org/10.1088/1755-1315/682/1/012047

Pamidimukkala, A., & Kermanshachi, S. (2021). Impact of Covid-19 on field and office workforce
in construction industry. Project Leadership and Society, 2, 100018.
https://doi.org/10.1016/j.plas.2021.100018

Rahim, A., Hamid, A., & Hatem, Z. M. (2019). Unethical Behaviour Among Professional in the
Malaysian Construction Industry Time Management Practices View project WELFARE
FACILITIES AT CONSTRUCTION SITES IN IRAQ View project. School of Civil
Engineering, Faculty of Engineering, December, 126–132.
https://doi.org/10.13140/RG.2.2.15778.99523

Zamani, S. H., Rahman, R. A., Fauzi, M. A., & Yusof, L. M. (2021). Effect of COVID-19 on
building construction projects: Impact and response mechanisms. IOP Conference Series:
Earth and Environmental Science, 682(1). https://doi.org/10.1088/1755-1315/682/1/012049