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e-ISSN: 2637-0395 Built Environment Journal 21(1) 2024, 109 – 117.
www.jeeir.com

A Review of Current Issues in Industrialised Building

System (IBS) for Construction Projects

Mohd Reeza Yusof1*, Izatul Laili Jabar2, Abdul Hadi Nawawi3, Mohd Nasrun
Mohd Nawi4
1,2,3
College of Built Environment, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.
4
School of Management of Technology and Logistics, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

ARTICLE INFO ABSTRACT

Article history: In Malaysia, the concept of prefabrication is known as Industrialised
Received 02 March 2023 Building System (IBS). In terms of cost, time, productivity, and quality,
Revised 24 October 2023
Accepted 24 October 2023 IBS is certainly beneficial based on previous local and international
Online first research. As part of Construction Industry Development Board (CIDB),
Published 1 January 2024 CIDB's Construction 4.0 Strategic Plan 2020-2025, the Malaysian
construction industry is being urged to employ innovative construction
Keywords: techniques. These initiatives illustrate the Malaysian government's
Industrialised Building System
Integration commitment to addressing the IBS agenda. Even though numerous
IBS current issues things have been done to enhance the IBS adoption in Malaysia, various
IBS challenges issues have arisen to bring about delays, disputes, miscommunications,
and payment issues affecting the IBS players. Thus, the primary purpose
of this research is to identify current issues and assist policymakers and
DOI: IBS players in mitigating those issues. The literature review was the first
10.24191/bej.v21i1.503 phase of the research, with the secondary data derived from relevant
books, journals, articles, theses, dissertations, conference proceedings
and reports. The second phase involved the collection of primary data,
wherein the information was collected through a preliminary study. The
research findings showed that IBS construction still faces challenges and
issues when adopted by the industry, where four (4) out of five (5)
interviewees stated that the primary integration issues are teamwork or
collaboration and procurement. This paper aims to present a literature
review and preliminary survey findings related to establishing pertinent
integration issues and challenges.

1*
Corresponding author. E-mail address: [email protected]
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INTRODUCTION

The construction industry is vital to any nation's growth as it plays an economic role, and physical
development provides employment and contributes to the nation's Gross Domestic Product (GDP). It is also
one (1) of the most challenging industries in many countries. From 2011 to 2015, Malaysia has experienced
significant economic growth, having grown at a steady rate of 6% per annum (Construction Industry
Development Board, 2015). In 2020, the Malaysian economy was affected by the spread of COVID-19,
which reduced GDP to -5.6% and bounced back to 3.5% in 2021 (Department of Statistics Malaysia, 2021).
The Malaysian construction industry has played a pivotal role in its consumption of a broad range of
services and goods and its provision of the core infrastructure. Infrastructure provision through the
construction industry has also initiated growth and development throughout Malaysia. The Malaysian
construction industry is an integral component of the Malaysian economy. It accounts for 4.5% of total
GDP in 2019 (Ministry of Works, 2022).

The construction industry offers large-scale positive spillover effects on the manufacturing and services
sectors. The construction industry accounts for 15% of the total output of Malaysia's manufacturing sector.
It is also a large consumer of a range of services, including knowledge-driven consultancy and engineering,
and a broad base of financial services to deliver on infrastructure needs and contribute 5% of the total output
of the Malaysian services sector. It is a primary job creator within Malaysia, providing jobs for nearly 9%
of the workforce (Construction Industry Development Board, 2015).

Despite its growth and active contribution to the GDP, the Malaysian construction industry is under
constant pressure to improve its performance. Construction Industry Master Plan 2006-2015 (CIMP 2006-
2015) targeted to increase the construction industry's GDP to 5% by 2015. In National Construction Policy
2030, the Malaysian construction industry's GDP failed to achieve 5%, an average of 4% (Ministry of
Works, 2022). The conventional construction method that is extensively practised in Malaysia is labour-
intensive, involving formwork fabrication, steel bending and concreting. Even though efforts to promote
the Industrialised Building System (IBS) in the Malaysian construction industry have been made, the
adoption and uptake of IBS still need to be made. The Malaysian construction industry is also struggling to
cope with performance, productivity, quality, environment and health and safety issues. Moreover, the
Malaysian construction industry has to deal with the influx of foreign labour in construction (Construction
Industry Development Board, 2007; 2015; 2018). With its current levels of productivity, quality, safety,
and excessive reliance on unskilled foreign workers, the condition of the industry is different from the
future development of Malaysia.

An introduction of Construction 4.0 Strategic Plan 2020-2025 by CIDB to continue the previous agenda
in CITP 2016-2020. This strategic plan primarily geared up the construction industry for the fourth
industrial revolution. Construction 4.0 is created to be aligned with the Shared Prosperity Vision 2030 (SPV
2030) and the National Policy on IR 4.0 (Industry4WRD) implementation. In the Construction 4.0 Strategic
Plan, the government focus on five (5) core values where digital technology plays a central role in Well
Being, Safety and Health, Sustainability and Resiliency, Productivity and Integrity in construction
(Construction Industry Development Board, 2021).

LITERATURE REVIEW

Industrialised Building System (IBS) in Malaysia

IBS is the term used by the government and industry players to represent the concept of prefabrication
of building components and the adoption of industrialisation in the Malaysian construction industry. IBS is
defined as a construction method in which components are manufactured in a controlled environment (on
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or off-site), transported, placed and assembled into a structure with minimal additional work (Construction
Industry Development Board, 2003; Musa et al., 2016; Tajul Ariffin et al., 2019). IBS adoption in Malaysia
aims to reduce the dependence on unskilled foreign workers and save the country’s loss in the currency
trade (Construction Industry Development Board, 2018). IBS also allows the stakeholder players in the
construction sector to project a new image of the Malaysian construction industry to be on par with
manufacturing-based industries. Moreover, adopting IBS promises to elevate every level of
industrialisation and mechanisation in the Malaysian construction industry (Construction Industry
Development Board, 2015). Additionally, adopting IBS will provide efficient, clean and improved safety
features associated with the Malaysian construction industry. IBS will also save valuable time, and it helps
reduce the risk of project delays and possible monetary losses (Construction Industry Development Board,
2015).
In an attempt to promote the IBS agenda in Malaysia, the Malaysian government, through the
Construction Industry Development Board (CIDB), encourages a paradigm move in the construction
industry. The paradigm move involves shifting from the conventional construction method approach to the
industrialisation perspective by promoting IBS in the construction industry (Nawi et al., 2011). The
Malaysian government and CIDB introduced plans and policies to encourage IBS implementation to
promote IBS in the Malaysian construction industry. The introduction of the Construction Industry Master
Plan 2006-2015 (CIMP 2006-2015) is a guide for the future direction of the Malaysian construction industry
by the Malaysian government has highlighted the importance of IBS and sustainability for the Malaysian
construction industry (Construction Industry Development Board, 2007). Furthermore, the IBS Roadmap
is also introduced to guide the direction of IBS implementation and address issues related to IBS. IBS
Roadmap 2003-2010 was the first IBS Roadmap, and it was replaced by IBS Roadmap 2011-2015. The
new IBS Roadmap 2011-2015 imposes a high-level intended outcome of implementing IBS compared to
the previous IBS Roadmap. After completing CIMP 2006-2015, CIDB introduced the Construction
Industry Transformation Program 2016-2020 (CITP 2016-2020), the guideline for the future direction of
the Malaysian construction industry. CITP 2016-2020 has highlighted the importance of IBS under the
Productivity thrust (Construction Industry Development Board, 2015). The government ensured the IBS
agenda in the Construction 4.0 Strategic Plan (2021-2025) as one (1) of twelve (12) emerging technologies
to be focused on (Construction Industry Development Board, 2021).

Low adoption and poor performance of IBS in Malaysia

Although IBS has been introduced for over forty (40) years, with well-documented benefits and strong
support from the government, the pace of implementation and usage of IBS still needs to be faster and
below the government target, as reported by the Construction Industry Development Board (2007).
Significant efforts have been in place to push IBS adoption. However, these efforts have yet to yield
sufficient impact, and the adoption rate is still low, as reported by Construction Industry Development
Board (2015). A survey conducted by CIDB showed the adoption rate at 10.7% for public projects and only
21% for private projects in 2017 (Construction Industry Development Board, 2021). In reality, IBS
adoption is still relatively low and still in the growing stages, as stated by Halil et al. (2015) and Shukor et
al. (2011). This statement is also in line with the study by Abdullah et al. (2021), where IBS implementation
is still low in Sarawak, although the state government has strongly recommended it. According to Alawag
et al. (2021), the initiatives by the government to encourage the implementation of IBS also seem not to
impact the adoption rate of IBS in Malaysia significantly. Recent research done by Thomas Tarang et al.
(2022) highlighted that the high adoption of IBS in Malaysia still has a long way to go. The latest report
from CIDB on IBS adoption in government and private projects in Malaysia in 2019 showed growth of
adoption of IBS rate for public projects to 36.1% from the 2017 figure (10.7%). The adoption rate in private
projects slightly improved to 33.1% from 21% in 2017, which is still behind the government goal
(Construction Industry Development Board, 2021).

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Construction industry implementation of IBS still needs to improve compared to conventional methods
(Rahim & Qureshi, 2018). A number of issues impede the performance of IBS during construction projects,
including the preference for conventional methods, lack of integration, delays, poor qualities and cost
overrun, and others (Khalil et al., 2016). This poor performance illustrates the need for the IBS project to
investigate alternative management practices that will improve performance (Rahim et al., 2020).
According to Jaffar & Lee (2020), the integration factor is one (1) of six (6) critical factors that have a
significant impact on IBS project performance.

Traditional procurement approach unsuitable for IBS projects

There is a significant barrier to IBS construction due to the conventional procurement commonly used
on IBS projects (Zuber et al., 2019; Osman et al., 2017). Furthermore, (Nawi et al., 2011) reported that
enhancing procurement systems will result in success for IBS in Malaysian construction. Moreover,
according to Zairul (2022), the benefits of IBS cannot be realised if outdated conventional methods and
strategies are still employed. There are several research by Viana et al. (2020), Hu & Chong (2020), Ariffin
et al. (2018), and Nawi et al. (2014) that recommend an increase in integration by changing from traditional
procurement to innovative procurement. This statement is also in line with a study done by Saad et al.
(2022), which confirms that enhanced procurement and contracting can clearly define client needs.

RESEARCH METHODOLOGY

A literature review and preliminary study with consenting respondents were used in data collection. By
conducting the preliminary study via interviews with IBS players consisting of consultants, contractors and
manufacturers, the seriousness of this issue and the significance of the research to the industry is genuine
and valid were identified. The interviewees were randomly selected from the CIDB list. However, since
this research is still ongoing as this paper was being written, therefore the data presented in this paper is
only the findings from the preliminary study. The literature review was the first phase of the research, with
the secondary data derived from relevant books, journals, articles, thesis and dissertations, conference
proceedings and reports. The second phase involved the collection of primary data, wherein the information
was collected through a preliminary study. Table 1 illustrates the background of the preliminary study.

Table 1. Preliminary study background

Description Remark
Target Respondent Consultant
Contractor
Manufacturer/supplier
Sampling Frame Five (5) respondents from CIDB’s source
Duration Three (3) months
Methodology Interview
Discussions
Software of Analysis Microsoft Excel 2010

Source: Authors, 2023

FINDINGS AND DISCUSSION

Table 2 summarises the interviewee's sector. The research came to an end after five (5) interviews because
all of the responses were consistently similar. In the interview, two (2) of the respondents indicated that
they were contractors, followed by two (2) who were manufacturers/suppliers, and one (1) who were
consultants. Most of the respondents who participated in the survey have vast experience in the construction
industry and IBS projects. According to Table 2, four (4) out of five (5) interviewees have more than ten
(10) years of experience in construction, followed by one (1) of interviewees who have only one (1) to five
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(5) years of experience in construction. Based on the interviewees' involvement in IBS projects, three (3)
interviewees have been involved in one (1) to five (5) IBS projects, and two (2) interviewees have been
involved in six (6) to ten (10) IBS projects. The data collected represents that respondents are experienced
both in the construction industry and involved in IBS projects. Therefore, the data collected is reliable and
suitable for the preliminary study.

Table 2. Summaries on the interviewee's sector

Interviewee Respondent sector Experience in the industry No. of involvement in the IBS Project
Interviewee 1 Contractor 1 to 5 years 6 – 10 projects
Interviewee 2 Contractor More than 10 years 1 – 5 projects
Interviewee 3 Manufacturer/Supplier More than 10 years 1 – 5 projects
Interviewee 4 Manufacturer/Supplier More than 10 years 1 – 5 projects
Interviewee 5 Architect Consultant More than 10 years 6 – 10 projects

Source: Authors, 2023

The interview results highlighted the current issues and challenges of IBS construction in Malaysia as
per Table 3. The interviewees were explained and questioned about eight (8) issues and challenges of
integration in managing IBS projects, which earlier has been derived from literature review such as
procurement, teamwork, coordination, site management, supply chain, parties involved, transportation and
payment. The findings are summarised in Table 3.
Table 3. Issues the interviewees experienced when adopting IBS construction
Issue Explanation
Procurement IBS prefer using Design and Build rather than the conventional method
Cost increases up to 30%-40% due to mismanagement.
Some of the parties involved needed to learn about IBS, especially procurement in
IBS.
Teamwork Some interviewees preferred that the previous team had been working before—dispute
on drawing due to lack of team spirit.
Prefer an in-house installer from the manufacturer.
Changes in design, although all parties were involved during an early stage.
There will be different outcomes if parties are not from an in-house company.
Coordination Miscommunication between parties (Installer NSC).
Manufacturer delay in delivery component.
It would happen if the parties involved needed to gain experience in the IBS project.
IBS Process (Site Management) Double handling and storage area limited due to share with sub-contractor.
Access to plant and machinery.
Logistic on distance (factory must be in the radius of delivery).
An issue is on the route of transportation - not proper planning for the multi-package
project.
An issue on jointing due to needing an in-house installer.
It depends on the financial capability of the contractor to hire experienced IBS
workers.
Supply Chain Management Issues with communication.
Delay issues in supplying IBS components.
Shortage of raw material delivery and cost of material to factory - This happens in
rural areas in obtaining stock.
Parties Involved Lack of knowledge of IBS for some parties. Some interviewees prefer to work in a
team (in-house team).
The manufacturer delays the delivery of the component to the site.
The installer needs to gain experience in IBS.
Consultant – issues on design.
Internal problems from other parties.
Transportation Issues with delivery time and trips (problem in route).
Limitation on the lorry.
Issues with heavy loads can cause road damage.
Minor issues on road damage.

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Cannot enter the site due to size component and site condition due to heavy load.
Payment Issues on claim material on site.
Problems happen if the contractor does not have strong finances to make an upfront
payment.

Source: Authors, 2023

The interviewees unanimously agreed that all those issues slightly impacted the integration of the IBS
project. However, it is found that all the interviewees have indirectly mentioned the issues which are
associated with integration. The highlighted issues related to integration are shown in Table 4.
Table 4. Issues related to integration in managing IBS project
Interviewee Main integration issue
Interviewee 1 Teamwork/collaboration and procurement.
Interviewee 2 Procurement, teamwork/collaboration and coordination.
Interviewee 3 Teamwork/collaboration and coordination.
Interviewee 4 Procurement.
Interviewee 5 All eight (8) issues related to integration.

Source: Authors, 2023

Preliminary studies show that IBS construction still faces challenges and issues when adopted by the
industry. Four (4) out of five (5) interviewees stated that the primary integration issues are
teamwork/collaboration and procurement. As contrasted with conventional techniques, the construction
industry's embrace of IBS still needs to be improved ( Rahim & Qureshi, 2018). The traditional procurement
approach has come under criticism for the IBS project execution process being fragmented in terms of team
integration and collaboration (Ariffin et al., 2018). As a result of that problem, several issues have recently
arisen, such as reworks, time delays, rising costs, lack of communication and coordination, wastage, lack
of integration, delays, poor quality and cost overrun and others (Khalil et al., 2016; Tajul Ariffin et al.,
2019).

CONCLUSION

Based on the above discussion, it can be summarised that these issues can be minimised by improving the
procurement through an innovative procurement such as Integrated Project Delivery (IPD), separation of
IBS procurement from the main contract, and partnering (Hu & Chong, 2020; Ariffin et al., 2018).
Therefore, it is crucial to conduct research that is expected to introduce innovative procurement for IBS
projects in Malaysia. Introducing innovative procurement to construction projects can lead to better project
performance and more efficient decision-making. In general, the findings of this study will be helpful in
accelerating IBS construction in Malaysia and will provide good insight into the industry.

ACKNOWLEDGEMENT

The authors would like to acknowledge all contributors involved in this study, both directly and indirectly.

AUTHORS’ CONTRIBUTIONS

None.

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