Abandoned Construction Project

1.0Introduction Abandoned projects is one the major problems in industry in Peninsular Malaysia. There were many reasons leading to this problem. This action has caused multifarious problems to the stakeholders, particularly the purchasers who become the end user. Until to date there is no effective and once-and-for-all means to face the problems of abandoned projects. An analysis of the sector in Malaysia shows that failed developments however tend to show something more than the mere recession.

Mismanagement and fraud appear at the top of the list of faults and problems. There is no real effort to tackle the core issues behind these failures for one reason or the other. Unless these projects and their failures are aired in open courts people will continue to fumble in the dark for the real reasons of failures and be reliant on ill-informed journalism to further confuse them.

This happen basically came from the client, consultant or contractor. Miscommunication between these three parties can cause the project is abandoned. Many problems may arise during construction project implementation; one main concern is delay. Delay is the time overrun either beyond completion date specified in a contract, or beyond the date that the parties agreed upon for delivery of a project.

There are many reasons that cause delays. Although the principle reasons for delays are comparable across developing countries, several factors pertaining to local industry, social-economic, cultural issues and project characteristics also contribute to delays. Delays may occur as a result of the actions or inaction on the part of owner, contractor, subcontractors, consultants or the government. In addition, delays are always interrelated which led to the more complicated situation. The normal scenarios during the construction are suspension of the contractor license while work is in progress, contractor unable to complete the project and contractor enters bankruptcy or liquidation.

2.0The Background of the Project Name of the building : Klang Shopping Complex Location of the project: Lot PT 21330, Jalan Tiara 4 Bukit Raja Client or owner: PNSB Acmar Sdn Bhd Contractor:Leadtec Construction Sdn. Bhd. Consultant:CVIST Group Consultan Sdn. Bhd. Subcontractor:ENMAC Sekutu Sdn. Bhd., KPK Quantity Surveyor Sdn. Bhd. The date project started:1998-1999

Source: Google Maps Figure 1: Maps of the Building

Figure 2: Background part of the Building

Figure 3: In front of the Building

3.0News on This Project

Figure 4: News based on Hulu Kelang Archives

Figure 5: News of Revival of the Mall in Klang

Figure 6: News of Revival of the Mall in Klang by WCT

4.0The Problem and Challenges Involves Based on our research on this particular topic, the contractor incompetence to complete this project effected from many problems. The first problem is due to the subcontractor. The hired subcontractor did not able to do their job in specific time and cause the delay. The miscommunication between the contractor and subcontractor may become the factor this problem.

Another problem is due to the cost of material and rented machine. The cost of the project is over the estimated budget. The insufficient budget during the construction causes the problem to happen. Same goes to the machine use during the construction. The estimated cost calculated by the contractor does not meet the real cost in the construction. This problem occurred due to lack of knowledge by the main contractor to handle this type of project.

Due to all these problems, this project has been delayed and are behind schedule. Delayed in a project means the project will cost more to complete.

5.0The Action Taken by the Parties Involves The client agreed to give a time extension to the main contractor in order to complete the project. But, after few months the progress of the project is still very slow plus the quality of work performed is also bad. As there is no significance improvement from the main contractor, they main contractor is said to have breach contract without executing his promise as in the agreement.

The client, with the advice from the consultant decided to terminate the contract immediately. The court that estimated the value of compensation that need to be paid to the client based on losses and injuries. The project is now abandoned since the owner did not have enough funds to proceed with the project due to heavy loss from the project earlier.

6.0Conclusion

As a conclusion, many problems occurred during a construction project. These problems need to be handling properly with cooperation from both the contractor and client. Base on our investigation, the main cause of this project being abandoned is because of poor management, hiring of unqualified worker, and the incompetency of the main contractor for the project. An abandoned project can affect the development of our country. Furthermore, abandoned project also affect our economy and also contribute to the increase in unemployment problems.

To avoid this problem, a proper plan before construction is necessary. As a civil engineering student a meticulous attitudes is important to improve the economics of this country. We need to apply all knowledge that have been learned and concern all of the news related with this field.

7.0 References * http://www.hulukelang.com/v2/index.php?option=com_content&view=article&id=833%3Amelawat-3-projek-besar-terbengkalai-milik-pnsb-acmar-di-klang&Itemid=84

* http://www.propertyguru.com.my/property-news/2012/8/5678/wct-to-revive-mbsb-s-abandoned-mall

* http://malaysiaretailnews.blogspot.com/2013/02/nst-enter-hope-for-abandoned.html 8.0Appendices