FROM SELECTION TO SUSTENANCE: UNRAVELLING THE

CAUSES LEADING TO EARLY TERMINATION OF MAIN

CONTRACTOR OF HOUSING PROJECTS IN MALAYSIA

YONG CHENG LING

Abstract: The development of construction industry has been contributed to the Malaysian economy ever since its independence. The
residential subsector has been leading the overall property market with contributing significant growth over the years. The scenario of early
termination of main contractor in the housing projects were noticed in recent reports, jeopardizing the delivery of planned residential stocks
in Malaysia. This scenario can be attributed to various symptoms or situations, and one of them is project delays. Therefore, Ministry of
Housing and Local Government (KPKT) has taken the initiatives to establish a specialized Task Force on Private Housing and Abandoned
Projects (TFST) to address the housing challenges in Malaysia, including early termination. From the literature review, factors contributing
to the early termination of construction projects can result from either internal or external factors, with internal factors main focusing three
key areas, which are client-related, consultants-related and contractor-related factors. Most studies have highlighted how early termination
can impact the time, cost and quality of the projects. With the focus on housing developers, consultants and G7 contractors experienced or
expert in early termination of housing projects, this paper intends 1) to identify the key factors that directly or indirectly lead to early
termination of main contractor in housing projects in Malaysia, 2) to investigate the time, cost & quality impact of the early terminated
housing project, and 3) to propose possible strategies to mitigate the problems of early termination of main contractor in housing project in
Malaysia. the research will adopt the qualitative method by conducting semi-structured interviews with housing developers, consultants and
G7 contractors in Malaysia. The findings of this study will help TFST and KPKT understand the key factors and impacts of early
termination of housing projects, hence, further exploring the mitigation and initiatives to improve the housing deliveries in line with the
National Housing Policy 2018-2025.

Key words: Early termination, housing, housing projects, main contractor, contractor.

1. INTRODUCTION populations in Malaysia has posed a desperate demand for housing

development from time to time.
Shelter is undeniably one of the basic human survivals needs which In general, Malaysian construction industry is separated
play a big role in achieving socioeconomic stability of a country. into two areas, which are general construction and special trade
The cruciality of addressing the housing needs is growing as it has works. Residential construction falls under the general construction
been outlined in the United Nations’ 11th Sustainable (Ibrahim et al., 2010) . In the Malaysian construction industry, the
Development Goal: Sustainable Cities and Communities, Target commonly adopted procurement systems include Design-Bid-Build
11.1. Malaysia as a fast-developing nation, is experiencing a (DBB), Design and Build (D&B), Management Contracting (MC),
serious shortage of housing, surpassing the capacity of government and Construction Management (CM). However, statistical analysis
to meet the housing needs of its citizens due to its rapid population based on Construction Industry Development Board (CIDB)
and urban growth (Muhammad & Johar, 2019) . The rapid databases conducted by Khazanah Research Institute (2015) and
population growth is further projected to increase from 28.6 Jaafar & Nuruddin (2012) reveals that the DBB procurement
million in 2010 to 41.5 million in 2040 (DOSM, 2016). This data approach predominates in Malaysian housing projects. Upon
gives a clear indication that the imminent grow of number of focusing on housing projects, the findings indicate that LSDS
remains the prevailing procurement system, followed by LSABQ usual, expected, or planned time. A synonymous term, ‘premature’,
and Turnkey (Jaafar & Nuruddin, 2012). is occasionally employed by researchers to describe the premature
In recent reports from newspaper, instances of mutual or early cessation of a project, denoting actions or decisions taken too soon,
termination of main contractors in Malaysian housing projects have especially prior to the natural or appropriate time. The definition of
been on the rise. This can be evidenced by a mutual termination ‘termination’ refers to the act of ending something or the end of
agreement entered by Yong Tai Bhd and Siab Holdings Bhd on 31 something. While there is no precise definition of ‘early
March 2023, TCS Group Holdings Bhd and Saujana Permai termination’ within the Malaysian housing context, a study
Development Sdn Bhd in June 2023, and termination of contract conducted in Chile (Riveros et al., 2022) elaborated that ‘early
between KSK Land Sdn Bhd and Grand Dynamic Builders Sdn termination’ involves concluding the contractual agreement
Bhd on 19 Aprill 2023. According to research conducted by between the client and the main contractor without finalizing the
(Tumi et al., 2009)
in construction industry in Libya, one notable design or construction activities of the ongoing project before the
consequence of project delays is the termination of contracts. contract's completion date.
To address prevailing issues in the housing sector, the According to Havila et al. (2013) , defined ‘early termination
Ministry of Housing and Local Government (KPKT) has of a project’ as endings that fall clearly short of the set time and
established a specialized Task Force unit with aims to synergize consequently, short of the set project targets, and that therefore
their collective knowledge, experience, and expertise to implement cause considerable changes to project management, as well as a
effective housing policies and programs, ultimately tackling the need for reorganisation that affects both internal and/or external
existing housing challenges in Malaysia. As of 31 October 2023, a stakeholders of the project. They also elaborated that an early
total of 55 delayed projects and 497 sick projects have been termination of a project is considered an unforeseen event that
identified, with 117 confirmed abandoned projects. While the data requires a distinct approach from the conclusion of a ‘normal’
indicates positive trend for delayed projects showcasing a 62.07% project. This termination can occur at any stage of the project life
reduction from 28 Feb 2023, the numbers of sick and abandoned cycle, including initiation, development, or implementation.
projects persistently remain high, fluctuating around the initially Within the scope of this research, limited to both public and
identified figures. Hanif (2023) explains that when a project is private Malaysian housing projects, particularly those employing
deemed "sick," it undergoes viability assessment. If considered the Traditional (DBB) procurement system, ‘early termination’ is
non-viable, a new contractor with an excellent track record and operationally defined as ‘the end of the contractual relationship
sound capital is appointed to take over the project. between the client and the main contractor without the completion
This research will be conducted among the developers, of construction activities or meeting construction project objectives
consultants and main contractor that have the knowledge or after the award of the contract and before the stipulated completion
experience in early termination of main contractor of housing date as outlined in the contract’. Nevertheless, the termination of
projects, with the aim to improve the construction and deliveries of certain projects poses challenges, especially those that need to end
Malaysian housing projects. The research objectives are 1) to before achieving the initially set goals. The reasons for such
identify the key factors that directly or indirectly lead to early premature terminations may stem from internal project issues or
termination of main contractor in housing projects in Malaysia, 2) external environmental factors.
to investigate the time, cost & quality impact of the early
terminated housing project, and 3) to propose possible strategies to 2.1.2 Main Contractor
mitigate the problems of early termination of main contractor in
housing project in Malaysia. Main Contractor in its simplest word, is the builder for a
construction project (Adros & Abidin, 2019; Anyanwu, 2013) . At
2. LITERATURE REVIEW its core, a Main Contractor is essentially the driving force behind a
construction project. They play a crucial role in bringing designs,
2.1 Definition drawings, schedules, and specifications to life, crafting a physical
2.1.1 Early Termination structure for the client. Of course, this process involves the
essential input of resources such as funds, labour, materials,
The term ‘early’ is defined by the Cambridge Dictionary as equipment, and machinery (Anyanwu, 2013) . As time has
occurring near the beginning of a period of time, or before the progressed through different eras, the role of a contractor has
expanded to encompass not only construction but also project defined ‘housing accommodation’ is ‘to include any building,
management, supervision, and commissioning (Claase, 2010). For which is wholly or principally constructed, adapted or intended for
a successful project delivery, it's vital for the contractor to human habitation or partly for human habitation and partly for
collaborate seamlessly with various stakeholders involved in the business premises. The term human habitation would include
project. This collaboration ensures open communication and buildings constructed for humans to live with their families.’. For
fosters effective relationships, facilitating the coordination of work the purposes of this research study, "housing projects" are
programs, documents, and corrections to prevent any discrepancies construed as construction projects treated as commodities that can
(Oke & Aigbavboa, 2017). be bought and sold, serving the fundamental purpose of providing
enclosed shelter for individuals to live their biosocial lives.
2.3 Housing and Housing Projects
2.2 Types of Houses in Malaysia
According to Orville & Grimes (1976) , historical perceptions
regarded housing primarily as a physical phenomenon, policies The type of houses in Malaysia can be categorized into medium,
aimed at housing provision centred on construction costs, material low-density housing and high-density housing
(Seo & Omar, 2010)
inputs, and standards and finishes. They further emphasized that .
housing functions not just as a family's shelter but also as the
Table 2.1: Classification of Types of Houses
central element in its entire residential surroundings. Housing (Hassan et al., 2021; Seo & Om
addresses social needs, meets the criteria for profitable urban
investment, acts as a hub for economic activities, symbolizes Medium,

achievement and social acceptance, and plays a role in both urban Low-density High-density housing

growth and income distribution. In contrast, Melnikas (1998) offers housing

a more comprehensive definition, conceptualizing "housing" as a Detached

Cluster House
confined space with physical, biological, and social dimensions. House/ Bungalow

This space accommodates biosocial life, encompassing production, Semi-detached

Flat/ Apartment
services, housekeeping, and other relevant activities. House

From an economic standpoint, housing can significantly Shophouse Low-cost Flat

impact the distribution of both income and wealth within a society, Terrace House/ Serviced Apartment/

given its dual role as an investment and a consumable asset. Unlike Link House Suite

many store-bought commodities, housing stands out as a complex Townhouse Condominium

and distinctive product with various components, making it

challenging to succinctly capture or categorize (Clapham, 2018). In
addition, the term "housing" serves as both a noun and a verb. As a 2.2.1 Detached House/ Bungalow
noun, it represents a material object—a commodity subject to
manufacturing, demolition, production, consumption, perception, The term ‘detached’ itself implies that this type of residence is

experience, buying, and selling. As a verb, "housing" refers to typically a standalone structure situated on an expansive piece of

individuals securing a home, entailing access to housing land, separate from other buildings. In Malaysia, the conventional

(Ruonavaara, 2018) . Additionally, the term "dwelling" is also bungalow is characterized as a spacious, well-ventilated, two-story

sometimes being used conveying a similar meaning, representing dwelling constructed with either timber or bricks. However, due to

both the actions of individuals within their residences and the evolving design trends and the specific preferences of

structures themselves (Ruonavaara, 2018). homeowners, many luxury bungalows were constructed for the

In its simplest form, as articulated by Kemeny (1992) , wealthy in early urban areas from the late 19th to the early 20th

housing is the assembly of bricks, mortar, or other building centuries (Chen, 1998) . Nowadays, bungalows in Malaysia
materials comprising structures within which people live. The showcase a remarkable diversity in forms, employing various

Town and Country Planning Department (PLANMalaysia, 2022) materials and encompassing single or multiple stories with unique

defines housing as a collection of houses or residential homes. designs. Ranging from 2,000 sqft to 12,500 sqft, these residences

While valuation and Property Services Department (VPSD) can accommodate numerous rooms, with a growing emphasis on
functional spaces that cater to modern lifestyles. Notably, some A terrace house, as defined by the Uniform Building By-Laws
bungalows even extend their built-up size to accommodate the 1984, is a residential building designed as a single dwelling unit
evolving needs of residents. As contemporary architecture and and is part of a row or terrace comprising at least three such
homeowners' preferences continue to evolve, Malaysia witnesses a residential buildings
(Malaysia & International Law Book Services Legal Resea
growing trend of bungalows incorporating innovative designs and These houses are the most prevalent
expansive living spaces, reflecting the dynamic nature of in Malaysia, constructed linearly in rows, with each unit separated
residential development in the country. The cost of a bungalow is by walls on both sides, available as single-story terraces or 2-3
undeniably varying based on factors such as size, location, and story terraces. Sometimes referred to as ‘link houses’ or ‘row
materials used (Hassan et al., 2021). houses ‘ (Hassan et al., 2021; Seo & Omar, 2010) , they are often
built in identical or mirror-image structures. The first and last
2.2.2 Semi-Detached House houses in a row are known as end terraces, end houses, or corner
houses, typically larger than the intermediate houses. Each terrace
The semi-detached house is characterized by two homes sharing a unit's built-up area ranges from 630 to 1,830 sqft, with an average
common bearing wall, positioned either back-to-back or side-by- of 1,050 sqft (Hassan et al., 2021) . Due to limited space, the
side, each with its own portion of a garden interior layout tends to be relatively uniform, featuring a living
(Hassan et al., 2021; Seo & Omar, 2010)
. A semi-detached house can take form of a room and kitchen on the ground floor, a master bedroom at the
single-story or a 2-3 story, with the standard built-up size falls front of the second floor, and two or three bedrooms at the back.
within the range of 2,300 sqft to 5,600 sqft. This housing type The constrained design often prompts residents to extend or modify
blends the advantages of a detached residence with the efficient their homes after occupancy, creating setbacks to increase living
land utilization found in terrace houses (Seo & Omar, 2010) . space. This phenomenon is a significant reason why Malaysian
Although semi-detached house is not as luxurious as bungalow, it terrace houses often deviate from their original uniformity after
provides a harmonious balance between privacy and shared space user occupation (Saji, 2012; Seo & Omar, 2010).
(Hassan et al., 2021) , allowing the owners to enjoy the personal
space on individual gardens while fostering the sense of 2.2.5 Townhouse
community through the shared bearing wall.
The townhouse represents a modern housing concept wherein two
2.2.3 Shophouse or more owners share a multi-storey residence. This housing style,
reminiscent of the terrace house facade, proves ideal for families
A shophouse is characterized as a row of narrow, small-scale intending to cohabit while maintaining individual living spaces.
terraced structures, featuring a combination of commercial spaces This innovative approach typically involves each owner occupying
on the ground level and living quarters above (Seo & Omar, 2010). a single or double conjoined floor. Entrances may be similarly
Typically erected in rows of two or three stories high, they exhibit positioned, or alternatively, located at the front or back of the unit,
uniform facades arranged in a grid pattern network of roads and with standard built-up area varies, ranging from 560 sqft to 7,000
back lanes. Shophouses traditionally have a standard width ranging sqft. Integrating this concept has gained popularity due to its
between 4 and 6 meters, with a depth extending at least 2 to 3 times potential for fostering communal living, enabling families to share
the width. Originally introduced from South China in the 19th certain areas while preserving a sense of personal space.
century, this architectural typology became prevalent in early Furthermore, the flexibility in layout options allows for
towns (Seo & Omar, 2010). However, it has become less common customization based on the occupants' preferences and needs.
in contemporary trends. However, according to (Hassan et al., 2021).
Valuation and Property Services Department (2022)
, shophouses is excluded as
residential property, but reported as shop. Therefore, for the 2.2.6 Cluster House
purposes of this research, shophouses will not be considered.
Referred to as the ‘Quadrant Double Story House’, the cluster
2.2.4 Terrace House/ Link House house is a relatively recent housing concept in the Malaysian
market, constituting a mere 0.8% of the total houses as of Q4 2022
(National Property Information Centre (NAPIC), 2022). According
to Seo & Omar (2010) , this housing type is considered priced between RM 30,000 and RM 35,000, targeting households
unconventional in Malaysia and stands out due to its unique with incomes ranging from RM 600 to RM 1,500 per month
architectural design. Remarkably, it emerged as a pioneering (Khazanah Research Institute, 2015) . These flats typically consist
project initiated by architect Tay Kheng Soon in 1976, aligning of three-bedroom homes with dimensions ranging from 650 sqft to
with the government's initiative to provide housing for the low- 700 sqft (Hassan et al., 2021).
income urban population. During this initiative, the planned
density was set at 60 units per acre, and the cluster houses were 2.2.9 Serviced Apartment/ Suite
constructed as two-story units arranged in back-to-back clusters of
four units. This distinctive approach marked a departure from the Indicated by the term ‘serviced’, a serviced apartment or suite
prevailing housing norms at the time, introducing a novel housing refers to residences that offer amenities such as room service,
typology that has since garnered attention for its innovative design housekeeping, and bellboy services, similar to hotel management.
and targeted urban development. Consequently, owners have to incur additional expenses for these
services, utilities, and maintenance. These units come fully
2.2.7 Flat/ Apartment furnished and are suitable for both short and long-term rentals.
Owing to this characteristic, serviced apartments are not classified
Hassan et al. (2021) characterizes a flat or apartment as a modest under residential titles; instead, they are reported as commercial
residential option, featuring simple designs without balconies. units (Hassan et al., 2021).
Although there are few distinctions between a flat and an
apartment, a flat is considered affordable housing, offering 2.2.10 Condominium
maximum floor space ranging from 650 sqft to 700 sqft, taller
buildings typically include lifts, whereas four to five-storey According to Lee & Young (1996) , "condominium" signifies a
structures are equipped with stairs only (Seo & Omar, 2010). Flats shared ownership structure involving multiple owners. On the
in Malaysia are predominantly targeted at the lower-income group, contrary, Singh (1992) interprets 'dominium' as individual
and thus little to no amenities are provided, causing the problem of ownership of a single unit within a multi-unit structure, with 'con'
double-parking or illegal parking of cars along the access road. On implying joint ownership of common facilities like elevators,
the other hand, apartments, usually five stories or taller, being lobbies, driveways, and recreational amenities. In Malaysia, a
viewed as medium-cost housing, with sizes ranging from about 550 condominium is described as a luxurious apartment offering a
sqft to 1,200 sqft. Normally, some apartments come with various lifestyle centred around leisure, central security, organized
amenities such as playgrounds, parking lots, and security guard maintenance, and additional amenities (Lee & Young, 1996)
houses. Consequently, the maintenance costs for apartments are Positioned as higher-cost urban mass housing, condominiums
higher than flats but lower than condominiums generally fall into two categories: low-rise, with fewer than 10
(Hassan et al., 2021)
. stories, and high-rise skyscrapers, exceeding 10 stories
Click or tap here to enter text.
(Seo & Omar, 2010). The typical unit size ranges
2.2.8 Low-cost Flat from 910 sqft to 1,479 sqft. Market prices for a single
condominium unit usually vary between RM 500,000 and RM
Since the initial introduction of the house-owning democracy 900,000, depending on location and scale (Hassan et al., 2021) .
concept in the Third Malaysia Plan (TMP), aimed at providing While higher end type of units can go up to million.
proper housing access for the urban poor, the government has
implemented various measures. One such measure involves 2.3 Factors of Early Termination of Construction
collaboration with the private sector to construct low-cost units Projects
(Ministry of Economy, 1976) . Initiatives like ‘Project Perumahan
Rakyat (PPR)’ PR1MA, and the Malaysia My First Home Scheme 2.3.1 Client-Related Factors
primarily stem from the Federal Government's efforts, with State 2.3.1.1 Change in Project Requirements
Governments playing a role in identifying available land for
housing construction and selecting eligible low-cost home buyers Early project termination may occur when clients change the
(Shuid, 2016). The majority of these provisions offer low-cost flats project's purpose or change in expected outcomes (Lock, 2003).
Toader et al. (2010) emphasize that clients contribute to early project to maintain the project's cash flow
(Yong & Mustaffa, 2012)
project termination through setting unrealistic expectations, .
frequently changing project requirements, and lacking efficient
planning. At the end of the study, they also recommended that 2.3.1.4 Irregular Payments
evaluating the methods used to set initial project expectations,
particularly in terms of project performance, cost, and schedule Irregular payments to contractors, leading to contract breaches,
(time, cost, quality). Interference with the project scope, changes in were identified as potential reasons for early termination
requirements, and specifications also can hinder project progress, (Abeynayake & Kumara, 2013) . Financial issues, such as delayed
contributing to early termination payments and financial difficulties, are major factors causing
(Akinshipe, Aigbavboa, Madidimalo, et al., 2019)
. Yong & Mustaffa (2012) further delays in construction projects in Malaysia (Alaghbari et al., 2007),
elaborated that excessive demand and variation will affect the jeopardizing the overall success of the construction project and
construction time performance. This is because when client alter potentially leading to early termination (Tumi et al., 2009) .
his requirements, it will takes more effort and time for the project Delayed payments place a burden on contractors, as they are
team to redesign the project, and reschedule the work programme, responsible for covering labour and equipment rental costs during
hence more cost will be incurred and more time will be consumed. the waiting period. Due to the substantial financial commitments
associated with construction projects, many contractors encounter
2.3.1.2 Poor Resources Allocation challenges in managing substantial expenses when their payments
are delayed (Yong & Mustaffa, 2017).
Resources, encompassing construction materials, equipment,
human resources, labour, land, finance, or information, play a 2.3.2 Consultant-Related Factors
crucial role. A survey by 2.3.2.1 Poor Conflict Management
Akinshipe, Aigbavboa, Madidimalo, et al. (2019)
in identified client-related one of the factors contributing to The construction industry's diverse nature inevitably generates
early project termination is inefficient resource allocation. They conflicts and disputes, affecting project performance and making it
further elaborated that delayed resource allocation can escalate harder to achieve project goals
(Iyiola & Rjoub, 2020; Jelodar et al., 2015)
costs, potentially leading to early project termination. This . According to the Project Management Institute (PMI),
phenomenon is a result of the fluctuating nature of building effective conflict management involves confronting conflicts and
materials prices. While surveyors typically account for a certain surfacing underlying issues by gathering all relevant background
range of price variations, the building cost estimations are carried information, preventing serious consequences and project failure if
out for the specific construction timeframe. Delays in resource identified immediately (Verma, 1998) .
Abeynayake & Kumara (2013)
approval and allocation can significantly disrupt the project outlined several prevalent classifications of disputes in
schedule, resulting in additional costs for procuring materials contractual relationships, particularly those significantly
beyond the initially planned project period. influencing project termination. These include conflicts among
relationships and individuals in the project, financial issues, quality
2.3.1.3 Poor Financial Capability standards of workmanship and disputes related to project timeline.
Lock (2003) supports the notion of funding sources,
asserting that early project termination may occur when clients 2.3.2.2. Lack of Experience
running out of funds. Financial limitations experienced by the
client can also lead to the early termination of the project, possibly The experience level of a consultant team also significantly
arising from the lack of liquidity in assets and limited access to impacts the success of construction projects, depending on the
(Akinshipe, Aigbavboa, Madidimalo, et al., 2019) . They also number of specialized project team members who are experts in
further elaborated that delayed resource allocation can escalate handling individual tasks (Wu et al., 2017) .
Yong & Mustaffa (2017)
costs, potentially leading to early project termination. analysis of consultant-related factors further supports that
Toader et al. (2010)
additionally suggested that ineffective management of cash the competency level of consultants is likely to influence project
flow may contribute to financial constraints. It is essential for success or failure. Firms with many years of experience are
clients to possess strong financial capabilities before initiating a considered more likely to have the ability to manage and monitor
projects, equipped with the understanding, competence, and
confidence to provide a detailed and accurate risk perception potentially resulting in early termination. Both studies indicate that
(Yong & Mustaffa, 2017). a contractor's experience and competency are crucial determinants
of a project’s success (Gabula, 2012; Yong & Mustaffa, 2012) .
2.3.2.3 Lack of cooperation, Commitment and This perspective aligns with the observations made by
Yong & Mustaffa (2012)
Communication , who emphasize issues such as low and quick
The absence of a strong relationship between consultants construction and inadequate implementation of effective safety
and contractors can lead to communication barriers, resulting in programs like SHASSIC.
instructions being conveyed incorrectly. Ineffective
communication increases the risk of project failure, ultimately 2.3.3.2 Poor Working Relationship
leading to early termination
(Akinshipe, Aigbavboa, Thwala, et al., 2019; Yong & Mustaffa, 2012)
. Insufficient cooperation, Yap et al. (2018) emphasize that the effective management of
commitment to a project, and ineffective communication stand out communication and coordination plays a crucial role in
as notable drawbacks in construction projects. These deficiencies determining the success of a project. The dynamics among
often arise from the adversarial dynamic among various project contractors, clients, consultants, and subcontractors are pivotal
stakeholders (Eriksson, 2006; Harmon, 2003) . In the absence of factors that can either contribute to or hinder a project's success.
adequate mechanisms to address these issues, conflicts evolving Given the prevalence of subcontracting and external consulting in
into disputes can significantly impact project success and harm the construction industry, it is common for main contractors to
relationships within the contractual chain between parties overlook the importance of coordination, placing the burden on
(Yong & Mustaffa, 2012)
. subcontractors and consultants to manage tasks independently
(Akinshipe, Aigbavboa, Thwala, et al., 2019). In instances where
2.3.3 Contractor-Related Factors coordination is lacking, there is a risk of incomplete information
2.3.3.1 Lack of Skills and Competency transmission, heightening the potential for project failure and,
ultimately, premature project termination.
The Malaysian construction industry operates in a price- Gunhan et al. (2012) emphasized that communication stands
competitive environment facilitated by competitive bidding. This as the paramount factor in construction projects, as it is imperative
predominant procurement approach, driven by the lowest cost to share project-related information among participants for
characteristic and dependent on the application of evaluation and successful project completion. In Malaysia, the deficiency in
bidding practices (Zainon et al., 2016) , may result in the lowest effective communication among key project stakeholders,
bidder lacking the required competency for project execution. including clients and contractors, emerges as a significant
Consequently, a contractor with insufficient experience may contributor to project delays. As evidenced by
Sambasivan & Soon (2007)
struggle to plan and manage projects effectively, leading to , any breakdown in communication has the potential to
disastrous consequences and potential early termination result in significant misunderstandings, consequently causing
(Yong & Mustaffa, 2012)
. As indicated by Lode et al. (2023) , a significant delays in project execution. Consequently, these delays have the
proportion, approximately 70–80%, of the construction workforce potential to culminate in the premature termination of projects.
in Malaysia comprises foreign individuals. The majority of these
foreign laborers lack specialized skills, leading to comparatively 2.3.3.3 Improper Planning, Monitoring and
lower work quality in comparison to local workers Managing
(Abdul-Aziz, 2001)
. Consequently, the diminished quality and productivity exert
a substantial impact on overall project quality Before commencing the actual implementation of the tasks,
(Yong & Mustaffa, 2017)
. construction projects frequently demand meticulous and
Typically, numerous subcontractors are engaged under the comprehensive planning (Yong & Mustaffa, 2017) . Local
main contractor. Consequently, if a subcontractor lacks experience contractor often fails to come out with a practical and workable
or is incapable, it poses a risk to the termination of construction work programme at the initial planning stage. This failure is
project (Yong & Mustaffa, 2012) . Sambasivan & Soon (2007) interrelated with lack of systematic site management and
further assert that a high degree of subcontracting often leads to a inadequate contractor’s experience towards the projects
heightened risk of time overruns and causes inefficiencies, (Sambasivan & Soon, 2007). Inadequate management of any facet
of a project is likely to result in project failure, ultimately leading Possible damage to the environment and changes in weather
to its premature termination. Contractors may mismanage various conditions can significantly impact efficiency and output,
aspects of the project, including but not limited to finances, labour, potentially leading to early project termination
(El-Rayes & Moselhi, 2001; Yong &
conflict resolution, site management, contractual obligations, . Construction projects,
relationships among subcontractors and consultants, as well as often executed outdoors, must undergo Environmental Impact
alterations to project designs Assessment (El-Rayes & Moselhi, 2001) . Excessive rainfall, for
(Akinshipe, Aigbavboa, Thwala, et al., 2019)
. instance, can hinder proper concrete curing, disrupting project
progress.
2.3.3.4 Lack of Site Management and Supervision
2.3.4.3 Natural Disasters
Conducting site inspections is essential to verify that all activities
align with specified requirements. Effective supervision of site Geographical location plays a crucial role, with some areas more
work is crucial to guarantee that the necessary standards are met on prone to natural disasters like windstorms, volcanoes, earthquakes,
the construction site. Inefficient site management by contractors floods, and other hazards that can result in early project
stands out as a major factor leading to construction delays. termination. Social influences, such as opposition from nearby
According to the research by Sambasivan & Soon (2007) , local residents to the construction of a high-rise building in a high-
contractors often exhibit shortcomings in site planning, density residential area, can lead to project termination. Concerns
implementation, and controls. Inadequate site management leads to about increased traffic, noise, security threats, and changes to the
delays in addressing on-site issues, negatively affecting overall neighbourhood’s unique character are factors highlighted by
project advancement and ultimately contributing to the premature Akinshipe et al. (2021).
termination of projects.
2.3.4.4 Political Instability
2.3.3.5 Failure to Adhere to Requirements
Political instability can affect various phases of a construction
This might be associated with the contractor's lack of competence, project as government policies change. Government instability is
wherein the contractor neglects to oversee the work in accordance particularly impactful for large-scale projects, given the
with the specified requirements and specifications. It is further government's multiple roles as the construction client, funder,
evidenced in a case law Fasda Heights Sdn Bhd v Soon Ee Sing economy regulator, and construction environment regulator
Construction Sdn Bhd & Anor [1999] 4 MLJ 199, where the (Akinshipe et al., 2021). Changes in monetary policy, for instance,
plaintiff, Fasda Heights Sdn Bhd had terminated Soon Ee Sing can affect the cost of construction materials and equipment,
Construction Sdn Bhd (the first defendant, also the contractor), due potentially leading to project termination too.
to failure in executing the works correctly and failed to rectify
defects in accordance with the Architects’ Instructions. 2.3.4.5 Economic Instability

2.3.4 External Factors Economic instability, affecting not only the construction industry
2.3.4.1 Resources Availability but all sectors, can lead to project delays if credit insurance
becomes challenging to obtain. Construction companies may face
As explained by Yong & Mustaffa (2012) , the timely availability difficulties relying on financial institutions or capital funding,
of resources is a crucial aspect related to the construction industry. sometimes resulting in bankruptcy (Nistorescu & Ploscaru, 2010) .
This dependency is closely tied to the demand and supply chain of Unstable economic conditions, fluctuations in the inflation rate,
materials in the market. This issue holds significance as it can and changes in economic policies may potentially lead to early
significantly impact construction timelines if specific resources are termination. This may result in an unanticipated and substantial
not accessible when needed. increase in material prices, leading to exceeding the planned
project costs. If the contractor believes that the surges in material
2.3.4.2 Weather Conditions prices have exceeded the initially agreed contract price, it could
potentially lead to a mutual termination as evidence by Aziz (2023)
and Salim (2023). These factors serve as determinants that can emphasize the importance of
either attract or discourage investors, influencing the overall allocating resources promptly, maintaining realistic project goals,
stability of the project (Yong & Mustaffa, 2012). avoiding constant changes, and securing adequate finances to
ensure uninterrupted project progress.
2.4 Impact of Early Termination of Construction From the perspectives of consultants and contractors
Projects Akinshipe, Aigbavboa, Thwala, et al. (2019) stress the need to
When the progress of a project is disrupted, either in terms of efficiently organize and manage site operations, finances, labour,
works or timelines, it inevitably affects the time, cost, and quality conflicts, communications, contracts, and modifications of project
of the project. Havila et al. (2013) state that premature project designs throughout the project life cycle to mitigate early
closure requires renegotiation of timelines, resource reallocation, termination. Every aspect of project planning and management
and a redefinition of project goals. Abeynayake & Kumara (2013) should be meticulously addressed as they collectively contribute to
outline six impacts of early project termination: effects on achieving project objectives.
professionals, damage to organizational reputation, consequences Abeynayake & Kumara (2013) recommend several
for external parties, impacts on employees, disruption of project mechanisms to enhance professional experience and mitigate
progress, and losses incurred due to termination. Early termination project or contract termination, including regular maintenance of
can also lead to disputes, contractor blacklisting, and bankruptcy. project records, amicable dispute resolution, adherence to contracts
Disputes may arise from unfulfilled entitlements of either party, to prevent breaches, and preliminary market surveys before project
and even if a contractor is removed from a blacklist after dispute investments.
resolution, damage to their reputation may persist. Akinshipe et al. (2021) further suggest that while
Madidimalo (2017), based on a case study in South Africa, construction projects cannot entirely avoid environmental or
identifies issues resulting from early termination, such as changes natural interruptions, they can be effectively managed through
in the client's attitude, loss of client interest, diminishing interest adequate forecasting and strategic analysis to mitigate the impacts
among project team members, demotivation, job insecurity, loss of of these external factors.
team identity, and the client's intention to change personnel. The
study further notes that early termination can negatively impact a 3. METHODOLOGY
country's economy, as the construction industry significantly 3.1 Research Framework
contributes to economic growth and backward and forward
linkages across sectors. Early termination wastes resources such as The flow of the research process has been summarized below.
materials, labour, and capital. 1. Identification of research problem & topic selection
2. Research questions, aim and objectives determination
- Scope of the study
2.5 Mitigation of Early Termination of Construction 3. Literature review
Projects - Secondary data such as online databases and library
resources
To effectively mitigate the risk of early termination,  Concepts of housing
Akinshipe, Aigbavboa, Madidimalo, et al. (2019)
suggest that clients ensure  Types of housing projects
timely and appropriate allocation of adequate resources, establish  Causes of early termination of main contractors
realistic and achievable project goals, avoid constant goal changes,  Impact of early termination of main contractors
undergo rigorous preplanning, select suitable professionals, and  Mitigation of early termination of main
secure sufficient finances to maintain project continuity. Client contractors
considerations for prospective project leaders include 4. Research design establishment
communication skills, technical expertise, stakeholder - Research methodology
management, cost and time management, education level, 5. Population and sampling method establishment
planning, leadership, team building, and professional certification. 6. Data collection
Professionals must be selected based on their capabilities to handle - Literature review
the specific project's size, complexity, and dynamics. Akinshipe, Aigbavboa, Madidimalo,
- Semi-structured interview
et al. (2019)
 7. Data analysis 3.4.1 Interview Question Design
- Triangulations analysis
8. Conclusion and recommendations drawing In order to collect the data, the question for the interview must first
be established. The interview question is divided into 3 sections
3.2 Research Design Establishment such as:
a) Section 1 – Respondent’s Background
In this study, a qualitative methodology is employed, particularly The respondents were asked regarding their backgrounds,
semi-structured interviews as the chosen method for gathering such as name, age, gender, company name, and working
information from the participants. This decision is prompted by the experience.
limited attention the escalating issue of early termination in b) Section 2 – Respondent knowledge on Early Termination
Malaysian housing projects among the research publications. As a of Main Contractor of Housing Projects
result, industry stakeholders may lack comprehensive access to The respondents were asked further on their knowledge
specific factors contributing to early termination in Malaysia, related to the Early Termination of Main Contractor of
hindering their ability to include these factors in risk assessments Housing Projects
for effective prevention. Besides, the selection of respondents is c) Section 3 – Respondent Perceptions Toward Early
critical, requiring individuals with relevant knowledge or prior Termination of Housing Projects
experience in early termination to ensure the depth and specificity The next questions were regarding to the respondent’s
of the information gathered. perceptions towards the early termination of main
contractor of housing projects in terms of the factors,
3.3 Population and Sampling Method impacts and mitigation.

This research adopts a non-probability sampling approach, 3.5 Data Analysis

specifically using purposive sampling. Purposive sampling
involves deliberately selecting particular settings, persons, or This research will adopt the triangulations analysis as it is seen to
events to obtain crucial information not attainable through other be the most suitable and the best method to be utilized in this
options (Taherdoost, 2016) . Given that early termination of research, as both data from interviews and literature review are
projects is a specific event, the sample focuses on individuals with being conducted in this study. As the strength of triangulation lies
expertise or experience in this area. Therefore, the purposive in the confirmation of findings by the second method, enhancing
technique aligns well with the research objectives. The study set a the reliability of the research. Conversely, if the results do not
minimum of three (3) respondents due to time constraints. align, it serves as evidence that relying solely on one method or
measure may not always be reliable. As supported by
Denzin (2012)
3.4 Data Collection , the usage of more than one method and different sources to
derive data drives a higher confidence in the result.
For this study, the primary data, semi-structured interview had
been selected for this research as it would allow covering various 4. CONCLUSION
issues concerning my study. This is because, by conducting the
semi-structured interview, detailed information about early This research provides a fundamental understanding of the early
termination of main contractor of housing projects can be explored, termination of main contractors of housing projects, a concern
which is limited in Malaysia context from the literature review. As addressed by the Task Force on Private Housing and Abandoned
this interview is more flexible, which allows the respondents to Projects (TFST) under the Ministry of Housing and Local
provide any subjective opinions and information which may not Government (KPKT). By identifying the direct factors contributing
have been thought by the researcher. Secondary data adopted is to the early termination of main contractors in the context of
literature review, encompassing online databases and library Malaysian housing projects, this study can benefit TFST and
resources such as books, journals, articles and government KPKT by providing valuable insights to aid them in addressing
publications. issues related to abandoned projects effectively.
ACKNOWLEDGMENTS Clapham, D. (2018). Housing Theory, Housing Research and Housing
Policy. Housing, Theory and Society, 35(2), 163–177.
The author acknowledges the guidance and supports provided by https://doi.org/10.1080/14036096.2017.1366937
the supervisor, Dr. Nur Syaimasyaza binti Mansor from Universiti Denzin, N. K. (2012). Triangulation 2.0. Journal of Mixed Methods
Sains Malaysia, Pulai Pinang, Malaysia. Research, 6(2), 80–88. https://doi.org/10.1177/1558689812437186
DOSM. (2016, November 4). Population Projection (Revised), Malaysia,
5. REFERENCES 2010-2040. Department of Statistics Malaysia.
Abdul-Aziz, A. R. (2001). Foreign workers and labour segmentation in https://v1.dosm.gov.my/v1/index.php?r=column/ctheme&menu_id=L
Malaysia’s construction industry. Construction Management and 0pheU43NWJwRWVSZklWdzQ4TlhUUT09&bul_id=Y3kwU2tSNV
Economics, 19(8), 789–798. FDOWp1YmtZYnhUeVBEdz09
https://doi.org/10.1080/01446190110072022 El-Rayes, K., & Moselhi, O. (2001). OPTIMIZING RESOURCE
Abeynayake, D. N., & Kumara, R. N. M. U. (2013). EFFECTS OF UTILIZATION FOR REPETITIVE CONSTRUCTION PROJECTS.
PREMATURE TERMINATION: CASE STUDIES OF SRI Journal of Construction Engineering and Management, 127(1), 18–
LANKAN CONSTRUCTION PROJECTS. The Second World 27. https://doi.org/https://doi.org/10.1061/(ASCE)0733-
Construction Symposium 2013: Socio-Economic Sustainability in 9364(2001)127:1(18)
Construction. Eriksson, P. E. (2006). Procurement and Governance Management –
Adros, N. A., & Abidin, Dr. N. Z. (2019). An Investigation of the Development of a Conceptual Procurement Model Based on Different
Diversification Roles of Contractor. SEISENSE Journal of Types of Control. Management Revu, 17(1), 30–49.
Management, 2(2), 1–12. https://doi.org/10.33215/sjom.v2i2.93 https://doi.org/10.5771/0935-9915-2006-1-30
Akinshipe, O., Aigbavboa, C., Madidimalo, M., & Thwala, W. D. (2019). Gabula, Z. H. (2012). Factors Influencing the Construction Project Success
Premature Project Closure: The Part Played by Clients. IOP Rates of Reconstruction Development Programme (RDP) Housing
Conference Series: Materials Science and Engineering, 640(1). Projects in the Eastern Cape: A Quality Perspective: A Census Study
https://doi.org/10.1088/1757-899X/640/1/012028 [Academic Thesis]. Durban University of Technology.
Akinshipe, O., Aigbavboa, C., Thwala, W. D., & Madidimalo, M. (2019, Gunhan, S., Senol, G., & Dogan, S. Z. (2012). NON-VERBAL CUES:
August 5). Premature project closure: the role of consultants and IMPROVING COMMUNICATION IN CONSTRUCTION
contractors. https://doi.org/10.33796/waberconference2019.58 PROJECTS. ASEE Annual Conference & Exposition.
Akinshipe, O., Aigbavboa, C., Thwala, W. D., & Mutshaeni, M. (2021). Hanif, N. R. (2023, August 9). “Sick” housing projects can harm the
External Components of Premature Construction Project Closure. In country’s economy. New Straits Times.
Advances in Science, Technology and Innovation (pp. 285–288). Harmon, K. M. J. (2003). Conflicts between Owner and Contractors:
Springer Nature. https://doi.org/10.1007/978-3-030-48465-1_47 Proposed Intervention Process. Journal of Management in
Alaghbari, W., Kadir, M. R. A., Salim, A., & Ernawati. (2007). The Engineering, 19(3), 121–125. https://doi.org/10.1061/(asce)0742-
significant factors causing delay of building construction projects in 597x(2003)19:3(121)
Malaysia. Engineering, Construction and Architectural Management, Hassan, M. M., Ahmad, N., & Hashim, A. H. (2021). Housing Purchase
14(2), 192–206. https://doi.org/10.1108/09699980710731308 Decision: The Variations Type of Housing Development in Malaysia.
Anyanwu, C. I. (2013). The Role of Building Construction Project Team International Journal of Academic Research in Business and Social
Members In Building Projects Delivery. IOSR Journal of Business Sciences, 11(7). https://doi.org/10.6007/ijarbss/v11-i7/10299
and Management, 14(1), 30–34. Havila, V., Medlin, C. J., & Salmi, A. (2013). Project-ending competence
www.iosrjournals.orgwww.iosrjournals.org in premature project closures. International Journal of Project
Aziz, A. (2023, March 31). SIAB, Yong Tai mutually terminate two Management, 31(1), 90–99.
outstanding condominium projects valued at RM190.4 mil. The Edge https://doi.org/10.1016/j.ijproman.2012.05.001
Malaysia. https://theedgemalaysia.com/node/661704 Ibrahim, A. R., Roy, M. H., Ahmed, Z., & Imtiaz, G. (2010). An
Chen, V. F. (1998). The Encyclopedia of Malaysia: Architecture (1st ed., investigation of the status of the Malaysian construction industry.
Vol. 5). Archipelago Press. Benchmarking, 17(2), 294–308.
Claase, J. (2010). Achieving alignment of the objectives of the role players https://doi.org/10.1108/14635771011036357
in a typical construction industry [Dissertation]. North-West Iyiola, K., & Rjoub, H. (2020). Using Conflict Management in Improving
University. Owners and Contractors Relationship Quality in the Construction
 Industry: The Mediation Role of Trust. SAGE Open, 10(1). Projects (1st ed., pp. 49–73). Springer International Publishing.
https://doi.org/10.1177/2158244019898834 https://doi.org/10.1007/978-3-319-54151-8_4
Jaafar, M., & Nuruddin, A. R. (2012). The development of public and Orville, F., & Grimes, Jr. (1976). Housing for Low-Income Urban Families.
private construction procurement systems in the Malaysian International Bank for Reconstruction and Development.
construction industry. Journal of Design and Built Environment, 11. PLANMalaysia. (2022). KAMUS PERANCANGAN BANDAR DAN DESA.
Jelodar, M. B., Tak, W. Y., & Wilkinson, S. (2015). Systematic Kementerian Pembangunan Kerajaan Tempatan.
representation of relationship quality in conflict and dispute: For Riveros, C., Ruiz, A. L., Mesa, H. A., & Guevara, J. A. (2022). Critical
construction projects. Construction Economic and Building, 15(1), Factors Influencing Early Contract Termination in Public Design-
89–103. Build Projects in Developing and Emerging Economies. Buildings,
Kemeny, J. (1992). Housing and Social Theory. Routledge. 12(614). https://doi.org/10.3390/buildings
https://doi.org/10.4324/9780203413562 Ruonavaara, H. (2018). Theory of Housing, From Housing, About Housing.
Khazanah Research Institute. (2015). Making Housing Affordable. Housing, Theory and Society, 35(2), 178–192.
Khazanah Research Institute. https://doi.org/10.1080/14036096.2017.1347103
Lee, K. C., & Young, P. F. (1996). CONDOMINIUM DWELLERS: A Saji, N. B. (2012). A Review of Malaysian Terraced House Design and the
STUDY OF LIFE-STYLE, PROFILES AND CONDOMINIUM Tendency of Changing. Journal of Sustainable Development, 5(5).
CHARACTERISTICS AND ATIRIBUTES. Journal of Business and https://doi.org/10.5539/jsd.v5n5p140
Social Sciences, II(1). Salim, S. (2023, June 20). TCS mutually terminates construction contract
Lock, D. (2003). Project Management (Eighth). Routledge . to build condo in Kuala Langat due to higher building material cost.
https://doi.org/https://doi.org/10.4324/9781315199764 The Edge Malaysia. https://theedgemalaysia.com/node/671913
Lode, D., Lee, J. C., Yusof, Z. Md., & Lee, S. (2023). Employment of Sambasivan, M., & Soon, Y. W. (2007). Causes and effects of delays in
Foreign Workers at Construction Industry in Malaysia—A Review Malaysian construction industry. International Journal of Project
(pp. 213–222). https://doi.org/10.1007/978-981-19-8024-4_18 Management, 25(5), 517–526.
Malaysia, & International Law Book Services Legal Research Board. https://doi.org/10.1016/j.ijproman.2006.11.007
(1994). Uniform Building By-laws 1984 [G.N. 5178/85]. International Seo, R. J., & Omar, S. (2010). A Typology of Modern Housing in
Law Book Services. Malaysia. International Journal of Human Ecology, 11(1), 109–119.
Melnikas, B. (1998). Management and modernization of housing facilities: Shuid, S. (2016). The housing provision system in Malaysia. Habitat
specific features of central and eastern European countries. Facilities, International, 54, 210–223.
16(11), 326–333. https://doi.org/10.1016/j.habitatint.2015.11.021
Meredith, J. R., & Mantel, Jr. S. J. (2012). Project Management: A Singh, G. (1992). Condominium Management: Principles Into Practice. The
Managerial Approach (Eighth). John Wiley & Sons, Inc. Surveyor, 27(4), 12–27.
Ministry of Economy. (1976). Third Malaysia Plan 1976-1980. Ministry of Taherdoost, H. (2016). Sampling Methods in Research Methodology; How
Economy. to Choose a Sampling Technique for Research. In International
Muhammad, Z., & Johar, F. (2019). Critical success factors of public– Journal of Academic Research in Management (IJARM) (Vol. 5, Issue
private partnership projects: a comparative analysis of the housing 2). https://ssrn.com/abstract=3205035
sector between Malaysia and Nigeria. International Journal of Toader, C.-S., Brad, I., Adamov, T. C., Marin, D., & Moisa, S. (2010). The
Construction Management, 19(3), 257–269. Main Causes which Lead to Success or Failure of a Project. In
https://doi.org/10.1080/15623599.2017.1423163 Scientific Papers: Animal Science and Biotechnologies (Issue 2).
National Property Information Centre (NAPIC). (2022). Property Stock Tumi, S. A. H., Omran, A., & Pakir, A. H. K. (2009). CAUSES OF DELAY
Table Q4 2022. Valuation and Property Management Department. IN CONSTRUCTION INDUSTRY IN LIBYA. http://conference.faa.ro
http://napic.jpph.gov.my/portal/web/guest/publication Valuation and Property Services Department. (2022). Property Stock
Nistorescu, T., & Ploscaru, C. (2010). IMPACT OF ECONOMIC AND Report 2022.
FINANCIAL CRISIS IN THE CONSTRUCTION INDUSTRY [Thesis, Verma, V. K. (1998). Conflict Management. In The Project Management
University of Craiova]. www.fiec.com Institute Project Management Handbook. John Wiley.
Oke, A. E., & Aigbavboa, C. O. (2017). Construction Projects and Wu, G., Liu, C., Zhao, X., & Zuo, J. (2017). Investigating the relationship
Stakeholders. In Sustainable Value Management for Construction between communication-conflict interaction and project success
among construction project teams. International Journal of Project
 Management, 35(8), 1466–1482. Zainon, A., Ayob, A., Arkam, M., Munaaim, C., Faiz, M., Zaki, M., &
https://doi.org/10.1016/j.ijproman.2017.08.006 Elyas, S. F. (2016). Bid Evaluation Strategy Among G7 Construction
Yong, Y. C., & Mustaffa, N. E. (2012). Analysis of factors critical to Companies In Northern States Of Malaysia. Research Journal Of
construction project success in Malaysia. Engineering, Construction Fisheries And Hydrobiology, 11(3), 24–30.
and Architectural Management, 19(5), 543–556. http://www.aensiweb.com/JASA/http://creativecommons.org/licenses/
https://doi.org/10.1108/09699981211259612 by/4.0/
Yong, Y. C., & Mustaffa, N. E. (2017). Critical Success Factors for
Malaysian Construction Projects: An Investigative Review.
International Journal of Built Environment and Sustainability, 4(2).
https://doi.org/10.11113/ijbes.v4.n2.180