Construction industry contributes to the economic growth output in Malaysia by an improvement in wider economic activity, variety tools and technologies. One of the prominent tools or systems includes the adoption of Industrialised Building System (IBS) for construction. Industrialised Building System (IBS) is defined as a construction made of components manufactured either on or off site, then positioned and assembled into the structures. In Malaysia, IBS is not a new initiative. The government has launched many initiatives to encourage the practitioners towards IBS implementation, however the rate on the IBS usage is still low. The construction stakeholders are concern on the cost factors as the main issue of its low adoption. It is often neglected that IBS constitutes intangible cost or non-monetary benefits of its adoption, thus, the purchase or initial cost cannot be overemphasized. Hence, this paper aims to identify the tangible and intangible cost elements and analyse the indicative level of its importance toward the IBS construction. Questionnaire survey is used as the research approach where the survey involved 73 nos. of IBS contractors registered in the Perak, Malaysia as the research scope. The data is analysed using Statistical Package for Social Science (SPSS) software version 22. The results revealed that the most significant component of IBS tangible cost is material cost, followed by Transportation Cost, Plant and Machineries Cost, Profit and Overhead, Labour Cost, Verification Cost, Maintenance Cost, Demolition Cost, Functional and Testing Cost, and Energy and Operational Cost. While the most important intangible cost elements is Wastage, followed by Time, Durability and Efficiency, Quality of Components, Sustainable, Levy exemptions, Tax Incentives, and Design. The study recommends that introducing a cost-effective capital would be able to boost the involvement of IBS contractors in the usage of IBS construction.
Abd. Rahman, A. B., and Omar, W. (2006). Issues and Challenges In The Implementation Of Industrialised Building Systems In Malaysia. Proceedings of the 6th Asia-Pacific Structural Engineering and Construction Conference (APSEC 2006), 5 – 6 September 2006, Kuala Lumpur, Malaysia
Abdul Rahim, A., & Qureshi, S. L. (2018). A Review Of IBS Implementation In Malaysia And Singapore. Journal of the Malaysian Institute of Planners, 16 (2), pp. 323 - 333
Abd Rashid, S. N. A., Khalil, N., & Isa, M. H. (2019). Conceptual Model Of Cost-Benefit Analysis For Monetary And Non-Monetary Items In Industrialised Building System (IBS) Project. Journal of Building Performance, 10 (2), pp. 85-92
Anuar, K., Kamar, M., & Azhari, M. N. O. R. (2014). IBS Survey 2010: Drivers, Barriers, and Critical Success Factors in Adopting Industrialised Building System (IBS) Construction by G7 Contractors in Malaysia. Journal of Engineering Science and Technology, 9(4), 490–501.
Bari, A. N. A., Abdullah, N. A., Yusuff, R., Ismail, N., & Jaapar, A. (2012). Environmental Awareness and Benefits of Industrialized Building Systems ( IBS ). Procedia - Social and Behavioral Sciences, 50, 392–404.
Bhangale, P. P., & Patil, S. S. (2014). “ Overhead Cost in Construction Industry,” 4(2), 1–6.
CIDB. (2018). IBS: Prospect & Challenges. Retrieved on , from http://ibsportal.cidb.gov.my/system_files/CMSController/56c14d3c-1a71-494d-81e7-ba663eb95f1c.pdf
EPU. (2020). Twelfth Malaysia Plan 2021-2025. Economic Planning Unit, Malaysia
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis. Vectors (7th ed.). Upper Saddle River, NJ: Pearson Printice Hall.
Holla, B. R. K., Anant, S., & Mohammad, M. A. (2016). Time , Cost , Productivity and Quality analysis of Precast Concrete System. International Journal of Innovative Science, Engineering & Technology, 3(5), 252–257.
Ismail, Z. A., Mutalib, A. A., and Hamzah, N. (2016). A Case Study of Maintenance Management Systems in Malaysian Complex and High-rise Industrialized Building System Buildings. International Journal of Economics and Financial Issues, 6(S3) 28-35
Jabar, I., Ismail, F., & Mustafa, A. A. (2013). AicQoL 2013 Langkawi Issues in Managing Construction Phase of IBS Projects. Procedia - Social and Behavioral Sciences, 101, 81–89.
Khalil, F. D. A. A., Aziz, F. N. A. A., Hassim, S., & Jaafar, M. S. (2016). A Review on Industrialized Building System Issues in Malaysia. MATEC Web of Conferences, 47, 04019
Khalil, N., Bohari, A. A. M., Rashid, A. F. A., Shamsudin, S. M., and Husin, H. N. (2021). Key Approaches in Life Cycle Cost in Green Government Procurement for Green project. Planning Malaysia: Journal of the Malaysian Institute of Planners, Vol.19(20), pp.27-38
Marsono, A. K., Tap, M. M., Ching, N. S., & Makhtar, A. M. (2006). Simulation of industrialized building system components production. In Proceedings of the 6th APSEC (pp. 87-96). Kuala Lumpur, Malaysia
Malaysia Equity Research. (2014). Construction IBS - Practical solution to rising costs. Kuala Lumpur: Amanah Investment Bank Berhad.
Ministry of Works. (2020). Construction Industry Transformation Program (CITP) 2016-2020. Kementerian Kerja Raya Malaysia (KKR): Malaysia
Mohammad, M. F., Baharin, A. S., Musa, M. F. (2016) The potential application of IBS modular system in the construction of housing scheme in Malaysia. Procedia Social and Behaviorial Science, 222, 75–82
Amin, M. A., Abas, N. H., Shahidan, S., Rahmat, M. H., Suhaini, N. A., Nagapan, S., and Abdul Rahim, R. (2017). A review on the current issues and barriers of Industrialised Building System (IBS) adoption in Malaysia’s construction industry. IOP Conf. Series: Materials Science and Engineering, vol. 271
Nasrun, M., Nawi, M., & Baluch, N. (2015). Study on the use of industrialised building system (IBS) in Malaysian private construction projects, Journal of Engineering and Applied Sciences, 10(17):7368-7374
Ogunde, A. O., Ayodele, R., Joshua, O., Nduka, D. O., Ogunde, A., Ogundipe, K. E., Ajao, A. M. (2018). Data in Brief Data on factors influencing the cost , time performance of the Industrialized Building System. Data in Brief, 18, 1394–1399.
Rahim, A. A., & Ismail, Z. (2011). IBS towards open building system in Malaysia. Kuala Lumpur, Malaysia: IIUM Press.
Saad, S., Alaloul, W. S., Ammad, S., Altaf, M., Qureshi, A. H. (2022) Identification of critical success factors for the adoption of Industrialized Building System (IBS) in Malaysian construction industry.Ain Shams Engineering Journal, 12(2), pp.1-13
Sangale, Y. (2015). Construction Cost Comparison Between Conventional and Industrialized Building System. International Journal of Modern Trends in Engineering and Research, 2(7), 720-725
Shamsuddin, S. M., Zakaria, R., Hashim, N., & Yusuwan, M. N. (2017). A Framework of Initiatives for Successful Application of Life Cycle Costing ( LCC ) in Industrialised Building System (IBS) in Malaysian Construction Industry. MATEC Web of Conferences, 138, 1–9
The Edge Markets. (2017). "IBS Adoption is still low - survey". Retrieved from https://www.theedgemarkets.com/article/ibs-adoption-still-low.
Walters, A. (2016). Understanding Indirect Costs in Construction Projects -- and Strategies for Keeping Them Under Control. Retrieved on 12 August 2020, from https://blog.gppcpa.com/blog/enewsletters/article/understanding-indirect-costs-in-construction-projects-and-strategies-for-keeping-them-under-control
Yunus, R. (2012). Decision Making Guidelines for Sustainable Construction of Industrialised Building Systems. PhD Dissertation, Australia: Queensland University of Technology
In-Text Citation: (Shukri et al., 2022)
To Cite this Article: Shukri, A. I. M., Husin, H. N., Shuib, M. N., Abidin, Z. Z., & Saidin, M. T. (2022). Indicative Level on The Determinants of Tangible and Intangible Cost Elements in Industrialised Building System (IBS) Projects. International Journal of Academic Research in Business and Social Sciences, 12(11), 2094– 2105.
Copyright: © 2022 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
